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FOR IMMEDIATE RELEASE
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Espey Announces 2nd Quarter Dividend ...

Saratoga  Springs,  NY; December 3, 2007- The Board of Directors of Espey Mfg. &
Electronics  Corp.,  (AMEX:ESP)  has declared a cash dividend of $.175 per share
for the second  quarter of the fiscal year ending June 30,  2008.  The  dividend
will be  payable on  December  21,  2007,  to all  shareholders  of record as at
December 12, 2007.

Also, the Board of Directors  increased to $2 million an existing  authorization
which allows management to periodically repurchase Company stock.

Espey's  primary  business  is  the  development,   design,  and  production  of
specialized  military and industrial power  supplies/electronic  equipment.  The
Company's web site can be found on the Internet at www.espey.com.
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For further information, contact Mr. Howard Pinsley or Mr. David O'Neil at (518)
245-4400.

Certain  statements in this press release are  "forward-looking  statements" and
are made  pursuant  to the safe  harbor  provisions  of the  Private  Securities
Litigation Reform Act of 1995. These  forward-looking  statements  represent the
Company's current  expectations or beliefs concerning future events. The matters
covered by these statements are subject to certain risks and uncertainties  that
could  cause  actual  results to differ  materially  from those set forth in the
forward-looking  statements.  The Company wishes to caution readers not to place
undue reliance on any such  forward-looking  statements,  which speak only as of
the date made.

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