Astro-Med Reports Record Fourth Quarter and Annual Sales; Directors Increase Regular Cash Dividend

Astro-Med, Inc. (NASDAQ: ALOT) reports net income of $856,000, equal to $0.15 per diluted share, on record sales of $16,005,000 for the Fourth Quarter ended January 31, 2006. During the corresponding period of the previous year, the Company reported net income of $458,000, equal to $0.08 per diluted share, on sales of $14,497,000.

During the twelve-month period of the fiscal year, net income was $2,551,000, equal to $0.44 per diluted share, on sales of $59,301,000. Net income in the twelve-month period includes $361,000, equal to $0.06 per diluted share for a tax-related benefit related to the favorable resolution of certain income tax examinations reported in the Third Quarter. Excluding the tax related benefit, earnings were $2,190,000, or $0.38 per diluted share. For the corresponding period last year, the Company reported net income of $2,709,000, equal to $0.47 per diluted share, on sales of $55,974,000. Net income in the prior fiscal year includes $939,000, equal to $0.16 per diluted share, in tax benefits. The tax benefits stemmed from the release of the valuation allowance on the net deferred tax asset reported in the First Quarter of the prior fiscal year. Excluding the tax related benefit, earnings in the previous year were $1,770,000, or $0.31 per diluted share.

Commenting on the results, Albert W. Ondis, Chief Executive Officer stated: "It was an outstanding Fourth Quarter for Astro-Med as we reported record sales and new orders leading to strong earnings and cash flow. New orders reached $17,347,000 in the quarter, a 23% increase over the prior year as demand from our domestic and international customers rose more than 20% above the prior year. Sales were also strong, reaching $16,005,000, representing an increase of 10% over the prior year. All three product groups, Test & Measurement (T&M), QuickLabel® Systems (QLS) and Grass-Telefactor® (G-T) reported sales increases.

"We are also pleased with the Company's results for the year, as new orders reached $61,928,000, a record for Astro-Med, representing a 10% increase over the previous year. We received a strong demand for all products. The Company's sales of $59,301,000 reached a record level and all product groups experienced growth from the prior year. As a result of our sales growth and improved margins, Astro-Med had a 23% increase in operating income.

"Our balance sheet remains solid with a current ratio of 4.7 to 1, we retain $14,725,000 in cash and marketable securities and a 10.4% return on shareholders equity excluding cash and marketable securities. We remain optimistic that with a continuous flow of new products together with the continued expansion of marketing initiatives globally, we will realize our planned growth and profitability goals."

As previously reported, on March 20, 2006, the Directors of Astro-Med declared an increase to the quarterly cash dividend from $0.04 per share to $0.05 per share payable on April 3, 2006 to shareholders of record on March 24, 2006.

The Fourth Quarter conference call will be held today, Tuesday, March 21, 2006 at 5:00 PM EST. It will be broadcast in real time on the Internet through the Investor Relations portion of our website at www.astro-medinc.com. We invite you to log on and listen, or access the broadcast any time for up to 5 days following the event.

Astro-Med, Inc. is a leading manufacturer of high tech specialty printing systems, electronic medical instrumentation, and test and measurement instruments employed around the world in a wide range of industrial, scientific, and medical applications.

                              ASTRO-MED, INC.

                   Consolidated Statement of Operations
                  In Thousands Except for Per Share Data

                        Three-Months Ended         Twelve-Months Ended
                        January     January        January     January
                       31, 2006    31, 2005       31, 2006    31, 2005

Net Sales              $ 16,005    $ 14,497       $ 59,301    $ 55,974

Gross Profit              6,855       6,180         24,658      23,046
                           42.8%       42.6%          41.6%       41.2%
Operating Expenses:
   Selling, General &
    Administrative        4,489       4,416         17,460      16,430
   Research &
    Development           1,111       1,054          4,043       4,047
                       --------    --------       --------    --------
                          5,600       5,470         21,503      20,477

Operating Income          1,255         710          3,155       2,569
                            7.8%        4.9%           5.3%        4.6%

Other, Net                   31           2            247         197
                       --------    --------       --------    --------

Income Before Taxes       1,286         712          3,402       2,766

Income Tax Benefit
 (Provision)               (430)       (254)          (851)(1)     (57)(2)
                       --------    --------       --------    --------

Net Income             $    856    $    458       $  2,551    $  2,709
                       ========    ========       ========    ========

Net Income Per Share
 - Basic               $   0.16    $   0.09       $   0.48    $   0.51
                       ========    ========       ========    ========
Net Income Per Share
 - Diluted             $   0.15    $   0.08       $   0.44    $   0.47
                       ========    ========       ========    ========

Weighted Average Number
 of Common Shares
 - Basic                  5,314       5,296          5,291       5,290
Weighted Average Number
 of Common Shares
 - Diluted                5,836       5,687          5,786       5,781

Dividends Declared Per
 Common Share          $   0.05    $   0.04       $   0.17    $   0.16

(1) Includes $361,000 in tax benefits resulting from the favorable
    resolution of certain income tax examinations.
(2) Includes $939,000 in tax benefits resulting from the release of the
    valuation allowance on the net deferred tax asset reported in the first
    quarter of FY 2005.

               Selected Balance Sheet Data
                      In Thousands

                                    As of          As of
                                  January 31,    January 31,
                                  --------        --------
                                    2006            2005
                                  --------        --------

Cash & Marketable Securities      $ 14,725        $ 13,983

Current Assets                      39,662          36,726

Total Assets                        49,647          47,039

Current Liabilities                  8,440           7,458

Shareholders' Equity              $ 40,302        $ 38,408

Safe Harbor Statement

This news release contains forward-looking statements, and actual results may vary from those expressed or implied herein. Factors that could affect these results include those mentioned in Astro-Med's FY2005 annual report and its annual and quarterly filings with the Securities and Exchange Commission.

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