PRESS RELEASE
                                                For further information contact:
                                                Edward F. Ruttenberg
                                                Phone: (412) 422-2377
                                                Fax:      (412) 422-2378
                                                Release No:  2005-04

(BW) (NY-AMERICAN-LOCKER-GROUP) (NASDAQ:ALGI) AMERICAN LOCKER GROUP INCORPORATED
SETTLES ENVIRONMENTAL LAWSUIT

BUSINESS EDITOR

JAMESTOWN,  NY-(BUSINESS WIRE) April 8, 2005 American Locker Group Incorporated
announced  that it has  entered  into a  release  and  settlement  agreement  to
terminate a previously disclosed lawsuit and all related cross claims related to
a facility  formerly owned by the Company in Gowanda,  New York. The lawsuit was
scheduled  to be  tried  in the  State  of New York  Supreme  Court,  County  of
Cattaraugus  commencing  on  April  19,  2005.  According  to the  terms  of the
settlement  agreement,  the  Company  will  pay a  total  of  $1,225,000  to the
plaintiffs who own property adjacent to the site and to the current owner of the
property, Gowanda Electronics Corporation. Of this amount, $825,000 will be paid
in April 2005, $200,000 in June 2005, and $200,000 in August 2005. The Company's
primary  insurance  carrier  during the period of the  ownership  of the Gowanda
property has agreed to reimburse the Company $122,500 in return for a release of
coverage  against the underlying  lawsuit.  This settlement does not resolve the
Company's  potential  liability for remediation of offsite  contamination  which
allegedly migrated from this site. As previously  disclosed,  the New York State
Department of  Environmental  Conservation  (NYSDEC) advised the Company on July
30,  2001  that  it  was  a  potentially   responsible  party  with  respect  to
contamination  at the site. The Company has not admitted  liability with respect
to this contamination and has not agreed to the remediation plan proposed by the
NYSDEC.

Safe Harbor Statement under the Private Securities Litigation Reform Act Of 1995

Except for historical  information  contained in this press release, the matters
discussed herein which contain  forward-looking  statements,  including  without
limitation, statements relating to the Company's plans, strategies,  objectives,
expectations,  intentions  and adequacy of  resources,  are made pursuant to the
Safe Harbor Provisions of the Private Securities  Litigation Reform Act of 1995.
Investors are cautioned that such  forward-looking  statements involve risks and
uncertainties  including  without  limitation the  following:  (i) the Company's
plans,  strategies,  objectives,  expectations,  and  intentions  are subject to
change at any time at the  discretion of the Company,  (ii) the Company's  plans
and results of operations  will be affected by the  Company's  ability to manage
its growth and inventory,  (iii) the risk that the


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Company's contracts with the USPS will not be renewed,  and (iv) other risks and
uncertainties  indicated  from time to time in the  Company's  filings  with the
Securities and Exchange Commission.

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