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FOR IMMEDIATE RELEASE


Espey Announces 4th Quarter Dividend...

Saratoga  Springs,  NY, May 22,  2006 - The Board of  Directors  of Espey Mfg. &
Electronics Corp., (AMEX:ESP) has declared a cash dividend of $.09 per share for
the fourth quarter of the fiscal year ending June 30, 2006. The dividend will be
payable on June 23,  2006 to all  shareholders  of record at June 5,  2006.  The
amount of the cash dividend per share has been adjusted to reflect the Company's
two for one stock  split in the form of a stock  dividend  of one share for each
issued share that was distributed on December 30, 2005.

The Board of Directors is pleased to announce the  appointment of James Clemens,
56,  as a  corporate  officer  of the  Company.  Mr.  Clemens  has been the Vice
President  of Sales &  Marketing  for the past two  years and will  retain  that
title. Prior to joining Espey, he was President & CEO of Ling Electronics, Inc.,
formally owned by Mechanical Technologies Incorporated.

Espey's  primary  business  is  the  development,   design,  and  production  of
specialized  military and industrial power  supplies/electronic  equipment.  The
Company's web site can be found on the Internet at www.espey.com.

For further information, contact Mr. Howard Pinsley or Mr. David O'Neil at (518)
245-4400.

This press  release may contain  certain  statements  that are  "forward-looking
statements"  and are made pursuant to the safe harbor  provisions of the Private
Securities  Litigation  Reform  Act of 1995.  These  forward-looking  statements
represent  the  Company's  current  expectations  or beliefs  concerning  future
events. The matters covered by these statements are subject to certain risks and
uncertainties  that could cause actual results to differ  materially  from those
set forth in the  forward-looking  statements.  The  Company  wishes to  caution
readers not to place  undue  reliance  on any such  forward-looking  statements,
which speak only as of the date made.

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