Exhibit 99.1


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FOR IMMEDIATE RELEASE
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Espey Mfg. & Electronics  Corp.'s revenues climb to record levels for the fiscal
year ended June 30th 2007. Company announces an increased dividend.

Saratoga Springs, NY, August 20, 2007- Espey Mfg. & Electronics Corp. (AMEX:ESP)
announces  results for its fiscal year and fourth  quarter,  both ended June 30,
2007.

For the fiscal year ended June 30, 2007, the Company  reported  record net sales
of $27.6  million,  compared with $20.8  million for the prior fiscal year.  Net
income  increased more than 63% to  $2,544,720,  $1.23 per diluted share for the
year,  compared with net income of $1,558,016,  $.76 per diluted share,  for the
fiscal year ended June 30, 2006.  At June 30, 2007,  the sales order backlog was
$36.3 million, compared with last year's $37.7 million on June 30, 2006.

For the fourth quarter ended June 30, 2007,  net sales  increased by nearly 13%,
$848,333, to $7.4 million, compared with last year's fourth quarter net sales of
$6.5  million.  Net  income  for the  fourth  quarter  ended  June 30,  2007 was
$807,729, $.39 per diluted share, compared with net income of $700,955, $.34 per
diluted share, for the corresponding period last year.

Mr.  Howard  Pinsley,  President & CEO,  commented "We are very pleased with our
success for the recently concluded fiscal year, resulting in strong increases in
both revenues and net income.  Our sales order backlog of $36.3 million reflects
that our Company is well positioned for the future."

Furthermore,  the Espey  Board of  Directors  has  declared  an  increased  cash
dividend. The regular first quarter dividend for the fiscal year ending June 30,
2008 will be  increased  from $.15 to $.175,  per share.  The  dividend  will be
payable on September  21, 2007,  to all  shareholders  of record at September 4,
2007.

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Espey's  primary  business  is  the  development,   design,  and  production  of
specialized military and industrial power supplies/transformers. The Company can
be found on the Internet at www.espey.com.  For further information, contact Mr.
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David O'Neil or Howard Pinsley 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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Espey  Mfg.  &  Electronics   Corp.   comparative   unaudited   three-month  and
twelve-month figures for the periods ended June 30, 2007 and 2006.
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                                  Three Months               Twelve Months
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                               2007         2006          2007           2006
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Sales:                       $7,405,438   $6,557,105   $27,656,359   $20,851,571

Net Income:                     807,729      700,955     2,544,720     1,558,016

Income per share:

     Basic                          .39          .35          1.24           .77

     Diluted                        .39          .34          1.23           .76


Weighted average number of
Shares outstanding:
     Basic                    2,060,028    2,019,330     2,048,626     2,012,761
     Diluted                  2,101,553    2,053,770     2,077,664     2,049,455
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