Astec Industries, Inc.

News Release

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

ASTEC INDUSTRIES REPORTS FIRST QUARTER RESULTS

CHATTANOOGA, Tenn. (April 22, 2008) - Astec Industries, Inc. (Nasdaq:  ASTE) today reported results for their first quarter ended March 31, 2008.

Net income for the first quarter of 2008 was $0.78 per diluted share compared to $0.69 per diluted share for the first quarter of 2007 for a 13.0% increase.

Revenues for the first quarter of 2008 were $263.1 million compared with $215.6 million for the first quarter of 2007 for a 22.0% increase.  Domestic sales accounted for 64.8% and international sales for 35.2% of revenues during the first quarter of 2008 compared to 77.2% for domestic sales and 22.8% for international sales during the first quarter of 2007.  The Company reported net income of $17.5 million for the first quarter of 2008 compared to net income of $15.3 million for the first quarter of 2007 for an increase of 14.4%.  The Company’s backlog at March 31, 2008 was $263.0 million compared to $266.2 million at March 31, 2007 for a 1.2% decrease.

Consolidated financial statements for the first quarter ended March 31, 2008 and additional information related to segment revenues and profits are attached as addenda to this press release.

Commenting on the announcement, Dr. J. Don Brock, Chairman and Chief Executive Officer, stated, “We are pleased with earnings for the first quarter of 2008.  International sales increased 88.4% reflecting continuing strength in certain foreign markets and the success of our efforts to strengthen our position in those markets.  Domestic sales increased 2.5%.  Going forward, our primary focus will be to maintain or improve margins in this inflationary environment.”

Dr. Brock continued, “The backlog is down $3.2 million compared to March 2007, but this decrease is partially attributable to increased net sales of $47.5 million for the quarter.  Our manufacturing capabilities have increased during the last year and we are better positioned to handle additional orders.  ConExpo significantly impacted our expenses this quarter, but ConExpo was a very successful show with great interest and order activity.  There were 144,000 attendees of whom 28,000 were foreign visitors from 130 different countries.  Increased asphalt recycling continues to be an industry trend as the price of oil increases.  We offer the most complete line of equipment to remove, process and recycle old pavement significantly reducing our customers’ cost.”

Investor Conference Call and Web Simulcast

Astec will conduct a conference call on April 22, 2008, at 10:00 A.M. Eastern Time to review its first 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/www/docs/100, Conference Calls Section.  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, April 29, 2008 by dialing (877) 660-6853, or (201) 612-7415 for international callers, Account #286, Conference ID# 282066.  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 manufacturing operations are divided into four business segments:  aggregate processing and mining equipment; asphalt production equipment; mobile asphalt paving equipment; and underground boring, directional drilling and trenching equipment.  We also have a company engaged in the wood grinding and processing industry.

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 upcoming quarters and future generally, the ability to maintain or improve margins, the strength of and growth in foreign markets, the ability to deliver backlog and additional orders, and, the increase in asphalt recycling and in sales of recycling equipment.  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, downturns in the general economy or the commercial construction industry, cyclical nature of the commercial, construction industry and the customization of the equipment the Company sells,  increases in the price of oil or decreases in the availability of oil, increases in the price of raw materials, a failure to comply with covenants in the Company’s amended credit agreement, contingent liability for certain customer debt, rising interest rates, rising steel and steel component pricing, delayed or decreased funding for highway construction and maintenance, managing and expanding in international markets, the timing of large contracts, production capacity, general business conditions in the industry, demand for the Company’s products, seasonality of sales volumes, 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, 2007.

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

or

F. McKamy Hall

Vice President and Chief Financial Officer

Phone:  (423) 899-5898

Fax:  (423) 899-4456

E-mail: mhall@astecindustries.com

or

Stephen C. Anderson

Director of Investor Relations & Corporate Secretary

Phone:  (423) 899-5898

Fax:  (423) 899-4456

E-mail: sanderson@astecindustries.com

Astec Industries, Inc. and Subsidiaries
Consolidated Balance Sheets
(In thousands)
(Unaudited)
		March 31,				March 31,
		2008				2007
Assets
Current assets
Cash and cash equivalents		$	29,154			$	57,120
Receivables, net			115,197				86,226
Inventories			219,028				164,725
Prepaid expenses and other			16,621				14,188
Total current assets			380,000				322,259
Property and equipment, net			142,817				117,720
Other assets			52,969				25,182
Total assets		$	575,786			$	465,161
Liabilities and shareholders' equity
Current liabilities
Accounts payable - trade		$	62,807			$	52,837
Other accrued liabilities			96,261				74,679
Total current liabilities			159,068				127,516
Other non-current liabilities			21,966				20,160
Minority interest in consolidated subsidiary			803				704
Total shareholders' equity			393,949				316,781
Total liabilities and shareholders' equity		$	575,786			$	465,161

Astec Industries, Inc. and Subsidiaries
Consolidated Statements of Operations
(In thousands)
(Unaudited)
		Three Months Ended
		March 31,
		2008				2007
Net sales		$	263,072			$	215,563
Cost of sales			196,852				161,190
Gross profit			66,220				54,373
Selling, general, administrative & engineering expenses			38,779				30,529
Income from operations			27,441				23,844
Interest expense			131				415
Other income, net of expenses			426				685
Income before income taxes and minority interest			27,736				24,114
Income taxes			10,160				8,746
Minority interest in earnings			57				34
Net income		$	17,519			$	15,334
Earnings per Common Share
Net income
Basic		$	0.79			$	0.71
Diluted		$	0.78			$	0.69
Weighted average common shares outstanding
Basic			22,237,100				21,644,097
Diluted			22,550,536				22,194,736

Astec Industries, Inc. and Subsidiaries
Segment Revenues and Profits
For the three months ended March 31, 2008 and 2007
(in thousands)
(Unaudited)
		Asphalt Group				Aggregate and Mining Group				Mobile Asphalt Paving Group				Underground Group				All Others				Total
2008 Revenues			71,585				91,090				47,131				32,643				20,623				263,072
2007 Revenues			65,010				82,343				43,950				24,260				-				215,563
Change $			6,575				8,747				3,181				8,383				20,623				47,509
Change %			10.1	%			10.6	%			7.2	%			34.6	%			-				22.0	%
2008 Gross Profit			19,606				23,157				12,592				7,103				3,762				66,220
2008 Gross Profit %			27.4	%			25.4	%			26.7	%			21.8	%			18.2	%			25.2	%
2007 Gross Profit (Loss)			17,927				20,879				10,182				5,395				(10	)			54,373
2007 Gross Profit %			27.6	%			25.4	%			23.2	%			22.2	%			-				25.2	%
Change			1,679				2,278				2,410				1,708				3,772				11,847
2008 Profit (Loss)			11,845				10,259				6,528				1,845				(12,725	)			17,752
2007 Profit (Loss)			11,453				10,375				5,477				1,014				(13,110	)			15,209
Change $			392				(116	)			1,051				831				385				2,543
Change %			3.4	%			(1.1	%)			19.2	%			82.0	%			2.9	%			16.7	%

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 consolidated net income is as follows:

		For the three months ended March 31,
		2008				2007
Total profit for all segments		$	17,752			$	15,209
Minority interest earnings of subsidiary			(57	)			(34	)
Recapture (elimination) of intersegment profit			(176	)			159
Consolidated net income		$	17,519			$	15,334

Astec Industries, Inc. and Subsidiaries
Backlog by Segment
March 31, 2008 and 2007
(in thousands)
(Unaudited)
		Asphalt Group				Aggregate and Mining Group				Mobile Asphalt Paving Group				Underground Group				All Others				Total
2008 Backlog			122,123				99,637				13,307				14,893				13,051				263,011
2007 Backlog			113,973				120,605				16,430				9,697				5,521				266,226
Change $			8,150				(20,968	)			(3,123	)			5,196				7,530				(3,215	)
Change %			7.2	%			(17.4	%)			(19.0	%)			53.6	%			136.4	%			(1.2	%)