Exhibit 99.1

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FOR IMMEDIATE RELEASE

Espey Announces 4th Quarter Dividend ...

Saratoga  Springs,  NY;  May 18,  2007- The Board of  Directors  of Espey Mfg. &
Electronics Corp., (AMEX:ESP) has declared a cash dividend of $.15 per share for
the fourth quarter of the fiscal year ending June 30, 2007. The dividend will be
payable on June 22, 2007, to all shareholders of record as of June 1, 2007.

The Board of Directors  also  increased to $2 million an existing  authorization
allowing management to repurchase Company stock periodically.

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

Certain  statements in this press release 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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