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Astec Industries, Inc.

News Release

1725 Shepherd Road | Chattanooga, TN 37421 | Phone (423) 899-5898 | Fax (423) 899-4456

ASTEC INDUSTRIES REPORTS THIRD QUARTER RESULTS

CHATTANOOGA, Tenn. (October 19, 2010) - Astec Industries, Inc. (Nasdaq: ASTE) today reported results for its third quarter ended September 30, 2010.

Revenues for the third quarter of 2010 were $177.9 million compared with $166.1 million for the third quarter of 2009 for a 7.1% increase. Domestic sales were $98.6 million during the third quarter of 2010 compared to $101.3 million during the third quarter of 2009 for a decrease of 2.6%. International sales were $79.3 million during the third quarter of 2010 compared to $64.8 million during the third quarter of 2009 for an increase of 22.4%. The Company reported net income attributable to controlling interest of $7.4 million for the third quarter of 2010 compared to net income attributable to controlling interest of $3.3 million for the third quarter of 2009 for an increase of 124.2%. Net income attributable to controlling interest for the third quarter of 2010 was $0.32 per diluted share compared to $0.15 per diluted share for the third quarter of 2009 for a 113.3% increase.

The Company’s backlog at September 30, 2010 was $145.6 million compared to $144.3 million at September 30, 2009 for a 0.9% increase.

Consolidated financial statements for the third quarter ended September 30, 2010 and additional information related to segment revenues, profits, and backlog are attached to this press release.

Commenting on the announcement, Dr. J. Don Brock, Chairman and Chief Executive Officer, stated, “We saw a marginal improvement in revenue for the third quarter, and a significant improvement in our net income. This increase was attributable to the downsizing we did in 2009, more productive fabricating and machine tools, increased parts sales and improved utilization of capacity. During the quarter, weakness in the domestic markets was offset by increases in international sales and parts sales.

We expect to see a continued weakness in domestic sales for the next 12 to 24 months. This could change with passage of a new Federal Highway Bill. To sustain and grow our revenue during these uncertain times, we are increasing our sales, service and parts personnel throughout the world. We are also increasing our presence in the mining industries and growing our product offering in the energy business.”

Dr. Brock continued, “Considering the severity of the continuing economic downturn, we are pleased with our results and feel that we are positioned to take advantage of any opportunities that may occur.”

Investor Conference Call and Web Simulcast

Astec will conduct a conference call on October 19, 2010 at 10:00 A.M. Eastern Time to review its third quarter results as well as current business conditions. The number to call for this interactive teleconference is (877) 407-9210. International callers should dial (201) 689-8049. Please reference Astec Industries.

The company will also provide an online Web simulcast and rebroadcast of the conference call. The live broadcast of Astec’s conference call will be available online at the Company’s website: www.astecindustries.com/conferencecalls. An archived webcast will be available for 90 days at www.astecindustries.com.

A replay of the conference call will be available through midnight on Tuesday, November 2, 2010, by dialing (877) 660-6853, or (201) 612-7415 for international callers, Account #286, Conference ID# 358499. A transcription of the conference call will be made available under the Investor Relations section of the Astec Industries, Inc. website within 5 days after the call.

Astec Industries, Inc. is a manufacturer of specialized equipment for building and restoring the world’s infrastructure. Astec’s equipment and manufacturing operations are divided into four primary business groups: aggregate processing and mining equipment; asphalt production equipment; mobile asphalt paving equipment; and underground boring, directional drilling and trenching equipment. The Other Group contains wood processing equipment manufacturing and Australian distribution for several of the Astec companies as well as Corporate.

The information contained in this press release contains “forward-looking statements” (within the meaning of the Private Securities Litigation Reform Act of 1995) regarding the future performance of the Company, including statements about the Company’s financial performance for the remainder of 2010, the effects on the Company from increasing its sales, service and parts personnel, the effects of the economic downturn, the continued growth of our international business, and the status of the multi-year highway bill. These forward-looking statements reflect management’s expectations and are based upon currently available information, and the Company undertakes no obligation to update or revise such statements. These statements are not guarantees of performance and are inherently subject to risks and uncertainties, many of which cannot be predicted or anticipated. Future events and actual results, financial or otherwise, could differ materially from those expressed in or implied by the forward-looking statements. Important factors that could cause future events or actual results to differ materially include: general uncertainty in the economy, future downturns in the economy, rising oil and liquid asphalt prices, rising steel prices, the affect of any future federal stimulus package, decreased funding for highway projects, tax and healthcare reform, the relative strength/weakness of the dollar to foreign currencies, production capacity, general business conditions in the industry, demand for the Company’s products, seasonality and cyclicality in operating results, seasonality of sales volumes or lower than expected sales volumes, lower than expected margins on custom equipment orders, competitive activity and those other factors listed from time to time in the Company’s reports filed with the Securities and Exchange Commission, including but not limited to the Company’s annual report on Form 10-K for the year ended December 31, 2009.

For Additional Information Contact:

J. Don Brock

Chairman of the Board & C.E.O.

Phone: (423) 867-4210

Fax: (423) 867-4127

E-mail: dbrock@astecindustries.com

F. McKamy Hall

Vice President and Chief Financial Officer

Phone: (423) 899-5898

Fax: (423) 899-4456

E-mail: mhall@astecindustries.com

Stephen C. Anderson

Secretary / Director of Investor Relations

Phone: (423) 899-5898

Fax: (423) 899-4456

E-mail: sanderson@astecindustries.com

Astec Industries, Inc.

Consolidated Balance Sheets

(In thousands)

(Unaudited)

	Sept 30		Sept 30
	2010		2009
Assets
Current assets
Cash and cash equivalents	$	81,366	$	36,149
Receivables, net		88,266		65,033
Inventories		242,137		263,705
Prepaid expenses and other		16,452		22,067
Total current assets		428,221		386,954
Property and equipment, net		168,414		169,559
Other assets		33,698		49,901
Total assets	$	630,333	$	606,414
Liabilities and equity
Current liabilities
Accounts payable - trade	$	39,382	$	36,444
Other accrued liabilities		79,619		75,823
Total current liabilities		119,001		112,267
Other non-current liabilities		28,094		28,387
Total equity		483,238		465,760
Total liabilities and equity	$	630,333	$	606,414

Astec Industries, Inc.

Consolidated Statements of Operations

(In thousands)

(Unaudited)

	Three Months Ended				Nine Months Ended
	Sept 30				Sept 30
	2010		2009		2010		2009
Net sales	$	177,853	$	166,084	$	580,557	$	560,231
Cost of sales		135,913		131,439		445,797		438,968
Gross profit		41,940		34,645		134,760		121,263
Selling, general, administrative & engineering expenses		31,808		30,445		95,351		93,478
Income from operations		10,132		4,200		39,409		27,785
Interest expense		30		66		289		418
Other income, net of expenses		492		555		1,103		1,330
Income before income taxes		10,594		4,689		40,223		28,697
Income taxes		3,198		1,320		13,665		10,157
Net income		7,396		3,369		26,558		18,540
Net income attributable to non-controlling interest		34		25		94		16
Net income attributable to controlling interest	$	7,362	$	3,344	$	26,464	$	18,524


Earnings per Common Share
Net income attributable to controlling interest
Basic	$	0.33	$	0.15	$	1.18	$	0.83
Diluted	$	0.32	$	0.15	$	1.16	$	0.82


Weighted average common shares outstanding
Basic		22,533,606		22,453,073		22,504,876		22,439,635
Diluted		22,843,300		22,735,064		22,814,634		22,711,526

Certain amounts for 2009 have been reclassified to conform with the 2010 presentation.

Astec Industries, Inc.

Segment Revenues and Profits

For the three months ended September 30, 2010 and 2009

(in thousands)

(Unaudited)

	Asphalt Group			Aggregate and Mining Group			Mobile Asphalt Paving Group			Underground Group			All Others			Total
2010 Revenues		45,478			60,263			36,681			19,220			16,211			177,853
2009 Revenues		44,556			55,865			36,814			16,939			11,910			166,084
Change $		922			4,398			(133	)		2,281			4,301			11,769
Change %		2.1	%		7.9	%		(0.4	%)		13.5	%		36.1	%		7.1	%

2010 Gross Profit		11,001			14,839			10,395			2,007			3,698			41,940
2010 Gross Profit %		24.2	%		24.6	%		28.3	%		10.4	%		22.8	%		23.6	%
2009 Gross Profit		10,769			12,367			9,148			784			1,577			34,645
2009 Gross Profit %		24.2	%		22.1	%		24.8	%		4.6	%		13.2	%		20.9	%
Change		232			2,472			1,247			1,223			2,121			7,295

2010 Profit (Loss)		4,041			4,437			5,188			(1,569	)		(4,480	)		7,617
2009 Profit (Loss)		4,045			2,811			4,281			(3,007	)		(4,505	)		3,625
Change $		(4	)		1,626			907			1,438			25			3,992
Change %		(0.1	%)		57.8	%		21.2	%		47.8	%		0.6	%		110.1	%

Certain amounts for 2009 have been reclassified to conform with the 2010 presentation.

Segment revenues are reported net of intersegment revenues. Segment gross profit is net of profit on intersegment revenues. A reconciliation of total segment profits to the Company's net income attributable to controlling interest is as follows:

	For the three months ended September 30
	2010			2009
Total profit for all segments	$	7,617		$	3,625
Net income attributable to non-controlling interest in subsidiary		(34	)		(25	)
Elimination of intersegment profit		(221	)		(256	)
Net income attributable to controlling interest	$	7,362		$	3,344

Astec Industries, Inc.

Segment Revenues and Profits

For the nine months ended September 30, 2010 and 2009

(in thousands)

(Unaudited)

	Asphalt Group			Aggregate and Mining Group			Mobile Asphalt Paving Group			Underground Group			All Others			Total
2010 Revenues		180,901			186,182			125,995			41,783			45,696			580,557
2009 Revenues		197,385			162,893			105,077			54,331			40,545			560,231
Change $		(16,484	)		23,289			20,918			(12,548	)		5,151			20,326
Change %		(8.4	%)		14.3	%		19.9	%		(23.1	%)		12.7	%		3.6	%

2010 Gross Profit		46,169			43,225			33,138			2,519			9,709			134,760
2010 Gross Profit %		25.5	%		23.2	%		26.3	%		6.0	%		21.2	%		23.2	%
2009 Gross Profit		49,860			36,761			24,501			3,818			6,323			121,263
2009 Gross Profit %		25.3	%		22.6	%		23.3	%		7.0	%		15.6	%		21.6	%
Change		(3,691	)		6,464			8,637			(1,299	)		3,386			13,497

2010 Profit (Loss)		24,410			12,232			16,662			(7,012	)		(18,058	)		28,234
2009 Profit (Loss)		27,325			8,532			10,632			(9,589	)		(18,320	)		18,580
Change $		(2,915	)		3,700			6,030			2,577			262			9,654
Change %		(10.7	%)		43.4	%		56.7	%		26.9	%		1.4	%		52.0	%

Certain amounts for 2009 have been reclassified to conform with the 2010 presentation.

	For the nine months ended September 30
	2010			2009
Total profit for all segments	$	28,234		$	18,580
Net income attributable to non-controlling interest in subsidiary		(94	)		(16	)
Elimination of intersegment profit		(1,676	)		(40	)
Net income attributable to controlling interest	$	26,464		$	18,524

Astec Industries, Inc.

Backlog by Segment

September 30, 2010 and 2009

(in thousands)

(Unaudited)

	Asphalt Group			Aggregate and Mining Group			Mobile Asphalt Paving Group			Underground Group			All Others			Total
2010 Backlog		74,034			55,367			6,141			4,290			5,811			145,643
2009 Backlog		76,328			54,693			4,346			2,947			5,968			144,282
Change $		(2,294	)		674			1,795			1,343			(157	)		1,361
Change %		(3.0	%)		1.2	%		41.3	%		45.6	%		(2.6	%)		0.9	%