EXHIBIT 99


Contact:
Dick Becht
716/655-3800


FOR IMMEDIATE RELEASE



                 ACME ELECTRIC ANNOUNCES YEAR-END RESULTS


     EAST AURORA, N.Y., August 5, 1998  -- Acme Electric Corporation (NYSE:
ACE) reported today that, for the year ended June 30, 1998, sales were
$90,916,000 with net income of $2,529,000, or $.50 per share, compared to
sales of $94,062,000 and net income of $136,000, or $.03 per share, for the
prior year.
     Robert J. McKenna, Chairman and CEO, stated that, "During the last
four years, we have successfully rebuilt the Company's operational base and
returned to profitability.
     Our major manufacturing facilities are now operating under Demand Flow
Technology, which has reduced manufacturing lead times from months to days,
greatly lowered our working capital requirements, and provided us with
tremendous flexibility to better serve our customers.
     Several new programs with existing customers are presently in the
design stage, with production scheduled to begin throughout the next twelve
months.  In addition, there are a number of new programs underway with new
customers.  These programs should yield solid sales and earnings growth
over the coming fiscal year.
     A general upgrade in the quality of our product development staff has
been made over the past couple of years, and their efforts have begun to
bear fruit.  Several new additions to our standard product offering were
added this past year, and more are under development.
     Of some concern is the loss of a major customer in our electronics
power supply business.  This customer has had an active vendor reduction
program in place for some time, favoring large multi-national companies,
and we expected our business with them to decline significantly over the
next couple of years, however, it now appears that will occur within four
to six months.  We are taking the necessary actions to minimize the impact
of this situation on our business and plan to accelerate the pace of new
product and market development.
     We believe that our future growth can be significantly strengthened by
effective partnering with other companies when our combined resources
provide a competitive market advantage.  One such relationship was recently
established with Rockwell Automation, which provides for collaborative
marketing efforts with their Allen Bradley line of electrical products.  We
intend to pursue similar alliances wherever appropriate.
     Much has been accomplished in the last few years, and much needs to be
done, but we continue to view the future with much optimism."
     Founded in 1917, Acme Electric Corporation is a leader in the design
and manufacture of power conversion equipment for electronic and electrical
systems for industrial, commercial, residential, military and aerospace
applications.  Corporate headquarters are in East Aurora, N.Y., with
operations in Cuba, N.Y., Lumberton, N.C. and Tempe, Ariz.
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ACME ELECTRIC CORPORATION

Comparative Analysis
(in thousands, except for per share data)

                                                  For the
                         For the Year Ended    13 Weeks Ended
                         ------------------  ------------------
                         06/30/98  06/30/97  06/30/98  06/30/97
                         --------  --------  --------  --------

Net Sales                 $90,916   $94,062   $23,633   $23,355
Net Income (Loss)           2,529       136     1,276     (178)
Net Income (Loss) Per
 Common Share
 (Basic and Diluted)         $.50      $.03      $.25    $(.04)
Weighted Number of Shares
 Outstanding Used to Compute
 Net Income (Loss) Per
 Common Share:
  Basic                 5,046,011 4,960,103 5,049,962 4,986,206
  Diluted               5,060,382 4,973,146 5,064,885 4,986,206