Dated: July 11, 1996 FOR IMMEDIATE RELEASE PRESS RELEASE SARATOGA SPRINGS, NY, JULY 10, 1996 - ESPEY MFG. & ELECTRONICS CORP. (AMEX:ESP) ANNOUNCES THAT EFFECTIVE AUGUST 1, 1996, MR. SOL PINSLEY WILL RETIRE AS PRESIDENT AND CHIEF EXECUTIVE OFFICER. MR. PINSLEY WILL REMAIN AS CHAIRMAN OF THE BOARD OF DIRECTORS, AND PURSUANT TO HIS EMPLOYMENT CONTRACT HE WILL REMAIN AS NON-EXECUTIVE OFFICER EMPLOYEE AT A REDUCED COMPENSATION LEVEL. MR. JOSEPH CANTERINO, A VICE PRESIDENT OF THE COMPANY, WILL REPLACE MR. PINSLEY AS PRESIDENT AND CHIEF EXECUTIVE OFFICER ON AN INTERIM BASIS. ESPEY MFG. & ELECTRONICS CORP., BASED IN SARATOGA SPRINGS, NY, IS PRINCIPALLY ENGAGED IN THE DESIGN AND MANUFACTURE OF POWER CONDITIONING APPARATUS AND RELATED ELECTRONIC EQUIPMENT.