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FOR IMMEDIATE RELEASE
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Espey Announces Special Dividend and Regular Quarterly Dividend...

Saratoga Springs,  NY; November 24, 2008- The Board of Directors of Espey Mfg. &
Electronics Corp.,  (AMEX:ESP) has declared a special cash dividend of $1.50 per
share and a regular quarterly dividend of $0.225 per quarter. The dividends will
be payable on December 19, 2008,  to all  shareholders  of record on December 8,
2008.

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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