McDonald Investments is New Market Maker of Margate Industries Common Stock

Margate Industries, Inc. announced that Cleveland, OH-based McDonald Investments Inc., a KeyCorp Company, has become a market maker of Margate common stock.

William Hopton, president and CEO of the Yale, MI-based provider of specialty services to the foundry industry, said he was pleased that such a quality national brokerage firm as McDonald Investments has begun trading Margate stock. The McDonald Investments brokerage unit has 68 offices around the country.

"This is part of our ongoing effort to raise awareness of Margate's story and increase trading volume in the stock," Hopton said. "1999 was a solid year for Margate, as evidenced by our increased profitability and strengthening of our balance sheet. Still, there is a significant gap between our book value and the current market value of Margate stock. We have stepped up our investor relations efforts to help the investment community better understand our company and its performance."

As previously reported, Margate posted net income of $295,982, or $0.20 per share, on net sales of $7.5 million through the first nine months of 1999. The Company's book value was $3.97 per share (as of 9/31/99), compared with a current market value of $1.56 per share.

McDonald Investments Inc. is a leading full-service investment firm serving individuals, corporations, institutions and governments. Established in 1924, it is a subsidiary of one of the nation's largest integrated multi- line financial services companies. KeyCorp, a Cleveland based financial services company with assets of approximately $83 billion, provides investment management, retail and commercial banking, consumer finance and investment banking products and services.

Margate Industries employs approximately 200 at two wholly owned subsidiaries, Yale Industries and Fort Atkinson Industries, which provide cleaning, grinding, chipping and finishing of iron castings.