<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>e601380_ex99-1.txt
<DESCRIPTION>PRESS RELEASE, DATED JANUARY 2, 2007.
<TEXT>

     Gales Industries Incorporated Announces Acquisition of Strategic Metals
                                   Distributor

BAY SHORE, NY - January 3, 2006 -- Gales Industries Incorporated (OTCBB: GLDS),
a holding company established to consolidate manufacturers, engineering
integrators and specialized service providers to the aerospace/defense industry,
today announced that it had signed a Stock Purchase Agreement for the
acquisition of all of the outstanding shares of Sigma Metals, Inc., a strategic
metals distributor based in Deer Park, Long Island, NY. As part of the purchase
agreement Gales Industries has agreed to pay approximately $5.0 million plus an
amount equal to Sigma's earnings for the period from January 1, 2006, until the
closing. The purchase price will be paid in a combination of cash, restricted
stock, and debt. Further, Gales will assume approximately $1.2 million of
Sigma's indebtedness. The closing of the acquisition is subject to standard due
diligence and applicable financial reporting requirements.

Michael A. Gales, Executive Chairman of Gales Industries, said, "We are pleased
to announce our second business acquisition since commencing our consolidation
program. The Company believes Sigma Metals brings to Gales Industries numerous
advantages in our pursuit of growth, margin expansion and expanded services to
our customers".

Commenting further, Peter D. Rettaliata, Gales Industries' President and Chief
Executive Officer, added, "With approximate annual revenues of $18 million,
Sigma Metals will increase our trailing twelve months revenue by nearly 60%, and
the Company expects Sigma to be accretive to earnings in addition to it being
cash flow positive. Strategically, Sigma Metals will provide a vehicle within
the Group enabling us to leverage our position in the aerospace raw materials
industry, providing both a hedge against price inflation and improvement of
overall access to critical sources of supply.

Sigma Metals is a specialty distributor of strategic metals, primarily aluminum,
stainless steels of various grades, titanium and other exotic end user specified
materials. Sigma's products are sold to both aerospace/defense as well as
commercial accounts throughout the U.S. and in numerous international markets.
Customers include the world's largest aircraft manufacturers, subcontractors,
original equipment manufacturers and various government agencies.

Legal representation for Gales Industries in this transaction was provided by
Eaton & Van Winkle LLP of New York, NY. Legal representation for Sigma Metals in
this transaction was provided by Berkman, Henoch, Peterson & Peddy, P.C. of
Garden City, NY.

ABOUT GALES INDUSTRIES INCORPORATED

<PAGE>

Gales Industries Incorporated (OTCBB: GLDS) is a holding company established to
engage in the consolidation of manufacturers, engineering integrators and
related service providers to the aerospace/defense and commercial aviation
industries. The Company is focused on flight safety and other critical
componentry. The Company's first acquisition was of Air Industries Machining
Corp., a leading aerospace/defense manufacturer and engineering integrator based
in Bay Shore, Long Island, NY. Consolidation opportunities include companies
operating within highly synergistic disciplines of manufacturing, technical
services and strategic products distribution. The Company's strategy and
attendant tactical plan is to execute its consolidation principally amongst Tier
III, IV and V aerospace/defense subcontractors. Gales offers a tailored exit
strategy or management continuity strategy in exchange for qualified
acquisitions, and targets technically superior middle market organizations with
revenues of up to $100 million annually. Information on the Company and its
products may be found online at www.airindmc.com.

                                      # # #

Certain matters discussed in this press release are 'forward-looking statements'
intended to qualify for the safe harbors from liability established by the
Private Securities Litigation Reform Act of 1995. In particular, the Company's
statements regarding trends in the marketplace, firm backlog, projected backlog,
potential future results and acquisitions, are examples of such forward-looking
statements. The forward-looking statements include risks and uncertainties,
including, but not limited to, the timing of projects due to the variability in
size, scope and duration of projects, estimates, projections and forecasts made
by management with respect to the Company's critical accounting policies, firm
backlog, projected backlog, regulatory delays, government funding and budgets,
matters pertaining to potential and pending acquisitions subject to and after
closings, and other factors, including results of financial audits and general
economic conditions, not within the Company's control. Certain of the Company's
forward looking statements, with the projected backlog in particular, are
formulated based on management's extensive industry experience and understanding
and assessment of industry trends, customer requirements, and related government
spending. Projected backlog may be subject to variability and may increase or
decrease at any time based on a variety of factors, including but not limited to
modifications of previously released orders, acceleration of orders under
general purchase agreements, etc. The factors discussed herein and expressed
from time to time in the Company's filings with the Securities and Exchange
Commission could cause actual results and developments to be materially
different from those expressed in or implied by such statements. The
forward-looking statements are made only as of the date of this press release
and the Company undertakes no obligation to publicly update such forward-looking
statements to reflect subsequent events or circumstances.

Contacts:
Jordan M. Darrow
Darrow Associates, Inc.
631-367-1866
jdarrow@darrowir.com

or

Gales Industries Incorporated
Michael A. Gales
631-328-7024
mag@airindmc.com
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