ABRAMS INDUSTRIES, INC.
                                     [logo]
                                   SINCE 1925





                               1999 ANNUAL REPORT

<PAGE>




SUMMARY FINANCIAL DATA*
<TABLE>
<CAPTION>
                                                                 %                                        %
                                    1999             1998      CHANGE          1998         1997        CHANGE
----------------------------------------------------------------------------------------------------------------
<S>                            <C>               <C>             <C>    <C>             <C>              <C>
Revenues                       $188,971,527      $178,590,842    +6     $  178,590,842  $136,123,601     +31
----------------------------------------------------------------------------------------------------------------
Net Earnings (Loss)            $   (676,031)     $  2,999,478   N/A     $    2,999,478  $  2,391,398     +25

----------------------------------------------------------------------------------------------------------------
Net Earnings (Loss) per Share  $      (0.23)     $       1.02   N/A     $         1.02  $       0.81     +26
----------------------------------------------------------------------------------------------------------------
Cash Dividends per Share       $       0.20      $       0.19    +5     $         0.19  $       0.07     +171
----------------------------------------------------------------------------------------------------------------
Shareholders' Equity           $ 23,272,560      $ 24,535,863    (5)    $   24,535,863  $ 22,125,214     +11
----------------------------------------------------------------------------------------------------------------
Return on Average
    Shareholders' Equity             (2.8)%             12.9%   N/A              12.9%          11.3%    +14
----------------------------------------------------------------------------------------------------------------
</TABLE>
*For complete 11 year review, see Selected Financial Data, Item 6 of this Report
on Form 10-K.





Dear Shareholders:

         Abrams Industries' 74th year was a period of transition, evaluation and
disappointing  operating  results.  Although  revenues once again grew to record
levels,  the  Company  suffered a net loss in 1999,  a reversal  from the record
earnings  achieved  in the prior two years.  The loss  resulted  primarily  from
greater than  anticipated  costs and challenges of adapting to the Company's new
manufacturing  facility.  Earnings in the prior two years also included gains on
real estate sales,  whereas there were no such sales completed  before April 30,
1999, the fiscal year-end.  The Construction  Segment once again achieved record
revenues and profits. Real Estate operating earnings,  exclusive of asset sales,
and cash flow from owned properties  surged to record levels.  Fiscal 1999 ended
with strong earnings in the fourth quarter.

         For the full fiscal year, consolidated revenues were $188,971,527, 5.8%
above last year's  $178,590,842.  The net loss was $676,031,  or $.23 per share,
compared  to  earnings  in 1998 of  $2,999,478,  or $1.02 per  share.  Per share
figures are based on weighted  average shares  outstanding  of 2,936,356  during
1999 and 2,937,712 during 1998.



Contents

Letter to Shareholders ...................................... IFC-4
Summary Financial Data ...................................... IFC
Form 10-K ................................................... 5-40
Directors, Officers
  and Directory .............................................  40
Abrams Philosophy,
  Annual Meeting and
  Other Information .........................................  IBC
<PAGE>
CONSTRUCTION
------------
<TABLE>
<CAPTION>
                                                          TOTAL               OPERATING
                                                         REVENUES              EARNINGS
-----------------------------------------------------------------------------------------
<S>                                                   <C>                    <C>
1999                                                  $160,611,412           $4,084,633
-----------------------------------------------------------------------------------------
1998                                                  $146,618,878           $3,506,217
-----------------------------------------------------------------------------------------
1997                                                  $ 98,460,046           $3,088,094
-----------------------------------------------------------------------------------------
1996                                                  $108,437,335           $2,806,030
-----------------------------------------------------------------------------------------
1995                                                  $ 94,128,795           $2,550,806
-----------------------------------------------------------------------------------------
NOTE:  Total revenues and operating  earnings  include  revenues  generated from
intercompany sources of $1,114,823,  $5,026,181, $345,048, and $792,213 in 1999,
1998, 1997 and 1996,  respectively.  In computing operating earnings,  allocated
parent  expenses  and income  taxes have not been  considered.  (For  additional
information, see note 13 to consolidated financial statements herein.)
</TABLE>


OUR CONSTRUCTION ACTIVITIES BEGAN IN 1925. ABRAMS CONSTRUCTION, INC. OPERATES AS
A GENERAL CONTRACTOR FOCUSING ON BUILDING AND RENOVATING RETAIL STORES, SHOPPING
CENTERS, FINANCIAL INSTITUTIONS, DISTRIBUTION CENTERS, MANUFACTURING FACILITIES,
OFFICE BUILDINGS AND OTHER TYPES OF COMMERCIAL CONSTRUCTION.

     In an increasingly  competitive  construction  marketplace,  we are pleased
that we were able to achieve record levels of revenues and profits. Construction
revenues grew 9.5% in 1999,  increasing to $160,611,412  from  $146,618,878 last
year.  Gross  profit  increased  by 8.1% to  $8,670,331  in  1999,  compared  to
$8,022,630 in 1998.  Operating  earnings rose at an even faster pace,  expanding
16.5% to $4,084,633 from the year earlier $3,506,217.

     We increased volume with our existing customers,  including Academy Sports,
Borders,  CompUSA,  Garden Ridge,  Kmart,  NationsBank,  Office  Depot,  Service
Merchandise,  Staples,  Stein Mart,  SunTrust  Bank,  The Home  Depot,  Upton's,
Wal-Mart and Ward's. We also built projects for several new customers, including
Bassett,  Best Buy, Dick's Sporting Goods, Mars Music,  Pamida and Urban Retail.
Our broadened  customer base allows us more flexibility  when individual  retail
customers modify growth strategies or change store renovation plans.

     In 1999 we completed  113 projects in 25 states,  striving  throughout  the
year to maintain our reputation of delivering completed projects on schedule.

     Operating   earnings  grew  faster  than   revenues,   the  result  of  our
effectiveness  in employing  our resources  and people  despite  ever-increasing
competitive  forces and a very tight labor  market.  We have been  successful in
retaining an  outstanding  workforce,  adding new  employees  that meet our high
standards of professionalism  and integrity,  while continuing the atmosphere of
trust and teamwork that pervades our Company.

     We acquired new computer  hardware and  software,  as we converted to a new
accounting   system,   and  we  began  the   implementation  of  a  new  project
administration  system. Our ongoing  investments in technology are necessary for
us to continue to increase our effectiveness and efficiency.

     As we enter the new  millennium  we will  endeavor to continue  meeting the
challenge of  profitably  managing  scarce  resources and people while adding to
shareholder value.
<PAGE>
MANUFACTURING
-------------
<TABLE>
<CAPTION>

                                                                     OPERATING
                                                       TOTAL          EARNINGS
                                                      REVENUES         (LOSS)
---------------------------------------------------------------------------------
<S>                                                 <C>            <C>
1999                                                $ 17,271,657   $ (1,760,238)
---------------------------------------------------------------------------------
1998                                                $ 15,193,653   $    459,468
---------------------------------------------------------------------------------
1997                                                $ 16,703,258   $  1,749,033
---------------------------------------------------------------------------------
1996                                                $ 15,008,358   $   (160,226)
---------------------------------------------------------------------------------
1995                                                $ 16,356,539   $   (478,235)
---------------------------------------------------------------------------------
NOTE:  Total revenues and operating  earnings  include  revenues  generated from
intercompany  sources of $501,220 in 1999 and  $181,003  in 1998.  In  computing
operating  earnings (loss),  allocated parent expenses and income taxes have not
been  considered.  (For  additional  information,  see  note 13 to  consolidated
financial statements herein.)
</TABLE>


OUR MANUFACTURING  OPERATIONS BEGAN IN 1946. ABRAMS FIXTURE CORPORATION PRODUCES
AND INSTALLS STORE FIXTURES FOR SEVERAL OF THE NATION'S  LEADING  RETAILERS.  IN
ADDITION,  WE  PRODUCE  AND  INSTALL  DISPLAYS  FOR THE  BANKING  INDUSTRY.  ALL
MANUFACTURING  OPERATIONS  WERE RELOCATED TO ABRAMS  RIVERSIDE,  OUR NEW 250,000
SQUARE FOOT MANUFACTURING  FACILITY IN LITHIA SPRINGS,  GEORGIA, IN EARLY FISCAL
1999.

     Relocating  any  operating  business is a  challenging  task.  In 1999,  we
actually   relocated  two,  combining  our  formerly  separate  wood  and  metal
operations  in a  unified  manufacturing  facility,  and it  proved to be a much
larger and more costly task than we anticipated. Leaving our two long-time homes
in downtown Atlanta, we moved into our new state-of-the-art facility in suburban
metro-Atlanta  during  the  first  quarter  of  fiscal  year  1999.  We were not
productively  "settled"  into  operations,  however,  until well into the fourth
fiscal quarter.

     During  the first  two  fiscal  months,  prior to  completion  of the move,
customer  orders  were at very low  levels,  allowing us to focus on packing and
scheduling.  Immediately after we went on-line in the new plant,  however,  with
many unopened "boxes" still lining  production  areas, the volume of orders from
existing customers accelerated  dramatically.  As volume soared, we continued to
meet customer  demand,  including  commencing work on a long-delayed  order, but
many planned  refinements and  modifications  of plant layout were delayed,  and
production  workflow  could not be optimally  scheduled.  Despite steady volume,
numerous  operating  inefficiencies  throughout much of the first three quarters
led to  excessive  labor and  material  costs,  much lower  gross  margins,  and
disappointing operating losses.

     Through the first three quarters of the year,  Abrams  Fixture  Corporation
incurred an operating  loss of just under $2.4 million.  In the fourth  quarter,
however, we achieved operating earnings of $605,702, which reduced the operating
loss for the entire year to $1,760,238. Total annual revenues increased 13.7% to
$17,271,657   from  last  year's   $15,193,653.   Exclusive  of  revenues   from
installation  services,  revenues  from fixture  sales in 1999  actually grew to
$16,100,608,  20.5% above 1998's  $13,364,357.  Because of  increased  labor and
overhead costs in 1999, gross  manufacturing  margin was 15.7%,  slightly better
than half the prior year's 29.2%. By the end of fiscal 1999, however,  the gross
margin showed some improvement.

     We are improving the level of production  completions  without  sacrificing
product  quality.  The new plant has reduced  inefficient  and costly  inventory
handling  through the  elimination of trucking  between  separate metal and wood
shop locations.

     Revenues  in  1999  came  from a  number  of  existing  fixture  customers,
including Aaron Rents, Domino's, John Ryan (NationsBank), Kmart, Sears, Simmons,
Stein Mart,  Stiffel,  Sutton,  The Athlete's Foot Group and The Home Depot. New
customers  included Bassett,  Best Buy, Shaw Industries and U.S. Vision.

     In an effort to address the  decline in our gross  margins,  management  is
focusing on more efficient plant utilization,  optimizing production scheduling,
more  proficient  purchasing,  continuous  employee  training,  and  controlling
overhead  and  expenses.   We  are  directing  marketing  efforts  toward  those
opportunities that best can leverage our high  capacity/high  quality production
capability, as we endeavor to return to profitability.
<PAGE>

REAL ESTATE
-----------
<TABLE>
<CAPTION>
                                                                             OPERATING
                                                          TOTAL               EARNINGS
                                                         REVENUES              (LOSS)
------------------------------------------------------------------------------------------
<S>                                                   <C>                   <C>
1999                                                  $14,202,578           $  (226,053)
------------------------------------------------------------------------------------------
1998                                                  $22,082,012           $ 2,882,496
------------------------------------------------------------------------------------------
1997                                                  $21,132,159           $ 1,003,370
------------------------------------------------------------------------------------------
1996                                                  $11,473,415           $(1,261,552)
------------------------------------------------------------------------------------------
1995                                                  $11,982,530           $  (900,864)
------------------------------------------------------------------------------------------
NOTE:  Total revenues and operating  earnings  include  revenues  generated from
intercompany  sources of  $1,485,038  in 1999 and $200,615 in 1998. In computing
operating  earnings,  allocated  parent  expenses and income taxes have not been
considered.  (For additional information,  see note 13 to consolidated financial
statements herein.)
</TABLE>

     OUR REAL ESTATE ACTIVITIES BEGAN IN 1960. ABRAMS  PROPERTIES,  INC. ENGAGES
IN  REAL  ESTATE  DEVELOPMENT,  REDEVELOPMENT,   ACQUISITION,  DISPOSITION,  AND
MANAGEMENT OF INCOME-PRODUCING  PROPERTIES,  PRIMARILY SHOPPING CENTERS, AS WELL
AS OFFICE AND INDUSTRIAL PROPERTIES. THE COMPANY ACQUIRES OR DEVELOPS PROPERTIES
FOR SALE TO  OTHERS  AND FOR OUR OWN  INVESTMENT  PURPOSES.  ABRAMS  PROPERTIES'
PORTFOLIO  OF   INCOME-PRODUCING   PROPERTIES  ON  APRIL  30,  1999,   CONTAINED
APPROXIMATELY  2.3 MILLION  SQUARE FEET,  IN NINE STATES,  CONSISTING OF SIXTEEN
RETAIL PROPERTIES, TWO OFFICE PROPERTIES AND ONE INDUSTRIAL PROPERTY.

     After  several  years  of  strategic  repositioning  through  acquisitions,
dispositions and re-developments, 1999 was devoted to integrating the properties
into our real estate portfolio.  The pause in transactions allowed management to
focus on improving portfolio productivity. The results are  encouraging.

     Cash flow  after  debt  service  from owned  properties  in 1999  increased
$793,000 or 64% over last year, and was 109% higher than the levels of 1995, the
final year before we began the overhaul of the portfolio.  Similarly,  operating
earnings excluding real estate sales and depreciation  surged $1,459,000 or 396%
in 1999, and was $891,000 or 95% above 1995. The return on average cash invested
in real estate tripled in 1999 to 15.06%.

     A key component of our  strategy in recent years has been to use  strategic
sales,  reinvestments and  redevelopments to help diversify the mix of portfolio
revenues and reduce reliance on any single customer. The percentage of portfolio
revenues (total revenues less interest income and gains on sale)  represented by
Kmart,  our largest source of rental  revenue,  was 36% in 1999, a 20% reduction
from last year's figure of 45%, and 36% below 1997's Kmart revenue concentration
of 56%.

     During the year  Merchants  Crossing  Shopping  Center of Newnan,  Georgia,
originally  developed by the Company in 1974 and expanded in 1987 and 1989,  was
marketed  for sale.  Before a sale  transaction  could be  structured,  however,
Goody's  elected to end its  anchor  tenancy  in the  center,  creating a 24,986
square foot vacancy.  While continuing efforts to sell the center, we identified
a suitable  replacement anchor tenant to fill the space. In the closing weeks of
the year, we successfully executed a new lease with Hastings Entertainment, Inc.
Subsequently,  in the first weeks of fiscal 2000, the Company closed on the sale
of the Newnan center for a price of $6.74 million, earning a gross profit on the
sale of $2.9 million.

     In continuation of our strategy to vary the mix of real estate assets,  and
to defer the income tax  otherwise  payable on the gain on sale, in July 1999 we
reinvested  the  proceeds  from the Newnan sale in the  purchase  of  Crossroads
Square Shopping Center in Jacksonville, Florida.

     Effective leasing and a reduction in overall operating costs contributed to
the gains in operating cash flow and operating earnings. Additional increases in
productivity can be achieved by more leasing, effective property management, and
additional cost reductions.

     The  successful  implementation  of our strategic plan is the result of the
leadership,   talents  and  efforts  of  our  team  of  top-notch   real  estate
professionals.  One such executive,  Brennon E. Smith,  Assistant Vice President
and Director of Construction,  earned a promotion to Vice President. We continue
to seek to improve the abilities and productivity of our people.

     As an  additional  vehicle  to grow Real  Estate  cash  flow and  return on
assets,  and in order to expand the  productivity of the Company's cash invested
in real estate, the Company is considering opportunities to work with sources of
outside equity capital.  We continue to seek  diversification  and will look for
other  ways to  improve  investment  returns  as part of our  pursuit  of higher
shareholder value.
<PAGE>


CONSTRUCTION
MANUFACTURING
REAL ESTATE

     In June 1999, your Board of Directors  declared a dividend in the amount of
$.04 per share, the Company's 80th consecutive quarterly dividend.  The dividend
was paid on June 30, 1999, to shareholders of record as of June 16, 1999.

     The Board of Directors  also decided to commence an in-depth  investigation
of  strategic  and  financial  alternatives  that may be  available  to maximize
shareholder value. That investigation is now underway.

     In July 1999,  Alan R. Abrams,  Co-Chairman of the Board of Directors,  was
promoted to the post of Chief Executive  Officer.  Mr. Abrams succeeds Joseph H.
Rubin,  who is leaving  after  twenty  years of service to the Company to pursue
other  business  interests.  J.  Andrew  Abrams,  Co-Chairman  of the  Board  of
Directors,  became  President and Chief  Operating  Officer,  while remaining as
Chief Executive Officer of the Manufacturing Segment.

     As brothers, we represent the third generation of the Abrams family to lead
our  Company.  We are  honored and proud to continue  our 74-year  tradition  of
creating value for you, the shareholders.


     SINCERELY,


     /s/ Alan R. Abrams                 /s/ J. Andrew Abrams
     Alan R. Abrams                     J. Andrew Abrams
     Co-Chairman of the Board           Co-Chairman of the Board
     Chief Executive Officer            President and Chief Operating Officer

<PAGE>


FOUNDER
 Alfred R. Abrams
 (1899-1979)

BOARD OF DIRECTORS
*Alan R. Abrams (E)
 Co-Chairman of the Board
 Chief Executive Officer
 Abrams Industries, Inc.

*J. Andrew Abrams (E)
 Co-Chairman of the Board
 President and Chief Operating Officer
 Abrams Industries, Inc.
 Chief Executive Officer
 Abrams Fixture Corporation

 Edward M. Abrams (E)
 Chairman of the Executive Committee
 Abrams Industries, Inc.

 Bernard W. Abrams (E)
 Chairman Emeritus of the Executive
 Committee
 Abrams Industries, Inc.

Paula Lawton-Bevington (A)(C)
Chairman
Servidyne Systems, Inc.

Donald W. MacLeod (A)(C)
Former Chairman of the Board
IRT Property Company

Anthony Montag (A)(C)
Chief Executive Officer
A. Montag & Associates, Inc.

Joseph H. Rubin (E)
Consultant
Abrams Industries, Inc.

Felker W. Ward, Jr. (A)(C)
Chairman of the Board
Pinnacle Investment Advisors, Inc.

Committees:
E-Executive
A-Audit
C-Compensation

    *Executive Officer


OFFICERS OF ABRAMS INDUSTRIES, INC.
AND SUBSIDIARIES
Alan R. Abrams
J. Andrew Abrams
Gerald T. Anderson, II
Michael W. Arasin
Sarah M. Edwards
Janis H. Fowler
Melinda S. Garrett
George W. Hodges, Jr.
B. Michael Merritt
James D. O'Donnell
Richard V. Priegel
Brennon E. Smith
Thomas F. Stock

CONSTRUCTION SEGMENT
ABRAMS CONSTRUCTION, INC.
  1945 The Exchange
  Suite 350
  Atlanta, Georgia 30339
  (770) 952-3555
  www.aciatl.com

MANUFACTURING SEGMENT
ABRAMS FIXTURE CORPORATION
  375 Riverside Parkway
  Lithia Springs, Georgia 30057
  (770) 372-1000
  www.abramsfixture.com

REAL ESTATE SEGMENT
ABRAMS PROPERTIES, INC.
  1945 The Exchange
  Suite 400
  Atlanta, Georgia 30339
  (770) 953-1777
  www.abramsproperties.com


<PAGE>
[back page]

                             ABRAMS INDUSTRIES, INC.
                             Corporate Headquarters
                                1945 The Exchange
                                    Suite 300
                             Atlanta, Georgia 30339
                                 (770) 953-0304
                               FAX (770) 953-0302
                            www.abramsindustries.com


[inside back cover]
BUSINESS DESCRIPTION

     Abrams Industries, Inc. (the "Company") consists of three industry segments
(Construction,  Manufacturing, and Real Estate) which work for the betterment of
the whole.  The  business  of the  Company,  therefore,  is the  business of its
segments.

ABRAMS PHILOSOPHY

     Make a profit so that the Company will remain financially sound.

     Help to develop the people in our  organization  to achieve  their  maximum
potential in a climate that  creates good working  conditions,  mutual trust and
happiness.

     Encourage  our people to  practice  thrift,  to take an active  interest in
their church or  synagogue,  community  projects and  government  and to be good
citizens.

     Manufacture  products and provide services of the highest quality,  so that
we may merit the respect,  confidence and loyalty of our customers.  Be a source
of strength to our customers and suppliers, conducting all of
our transactions with them with fairness.

     Plan and carry out all of our activities so that the Company can expand its
leadership and be regarded as a model in industry.

ANNUAL MEETING INFORMATION


     The Annual Meeting of Shareholders of Abrams Industries,  Inc. will be held
at 4:00 p.m. on Wednesday,  September  22, 1999, at the Corporate  Headquarters,
1945 The Exchange, Suite 300, Atlanta, Georgia.

TRANSFER AGENT:
SunTrust Bank, Atlanta
Post Office Box 4625
Atlanta, Georgia 30302