/ CORRECTION - Thomas Equipment to Produce Skid Steer Loaders for Kubota in Select European Markets

Market Wire, December, 2004

In the news release, "Thomas Equipment to Produce Skid Steer Loaders for Kubota in Select European Markets" issued earlier today by Kubota and Thomas Equipment Inc. (OTC BB: TEQI), we are advised by the company that the 5th paragraph should read, "The new Thomas built skid steer loaders will be marketed by Kubota, and will be available by 2005 in select European markets," rather than "The new Thomas built skid steer loaders will be branded and marketed by Kubota, and will be available by 2005 in select European markets," as originally issued by the company.

Also the 6th paragraph should read, "Thomas anticipates orders of up to 500 units and has currently received orders for 150 units. If Thomas receives orders for 500 units it will lead to over US $9 million in new revenue for Thomas," rather than "Kubota has ordered 500 units from Thomas leading to over US $9 million in new revenue for Thomas," as originally issued by the company. Complete corrected text follows.

Thomas Equipment to Produce Skid Steer Loaders for Kubota in Select European Markets

CENTERVILLE, NB -- 12/02/2004 -- Thomas Equipment Inc. (OTC BB: TEQI) has reached an agreement with Kubota Europe to produce skid steer loaders for Kubota in select European markets.

The new partnership strengthens the relationship between Thomas and Kubota and provides Kubota further expansion into the growing European compact construction equipment market.

"We're very excited about the opportunity to partner with a global leader that matches our passion and commitment for tough, dependable products that help our customers do the job," said David E. Lush, Thomas Equipment, V.P. Marketing.

"We use Kubota diesel engines in our skid steer loaders and many of our other products, including our portable material handlers. This is the perfect next step in the continuing growth of both our companies."

The new Thomas built skid steer loaders will be marketed by Kubota, and will be available by 2005 in select European markets.

Thomas anticipates orders of up to 500 units and has currently received orders for 150 units. If Thomas receives orders for 500 units it will lead to over US $9 million in new revenue for Thomas.

About Thomas Equipment Inc. (OTC BB: TEQI): Thomas Equipment Inc., www.thomasequipment.net and www.thomasloaders.com, manufactures and distributes a full line of skid steer and mini skid steer loaders as well as attachments, mobile screening plants and six models of mini excavators through a worldwide network of dealers and distributors. In addition to its industrial and construction products, it manufactures a complete line of potato harvesting and handling equipment.

Safe Harbor Statement Under the Private Securities Litigation Act of 1995 - With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. The actual future results of either TEQI could differ significantly from those statements. Factors that could cause actual results to differ materially include risks and uncertainties such as the inability to finance the company's operations or expansion, inability to hire and retain qualified personnel, changes in the general economic climate, including rising interest rate and unanticipated events such as terrorist activities. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms, or other comparable terminology. These statements are only predictions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements. For further risk factors see the risk factors associated with our Company, review our SEC filings.

Contact: New-School Communications, LLC Blois Olson 651-221-1999 www.new-school.com