ALGOR, INC. LAUNCHES EXPANSION PLAN

PITTSBURGH, PA – January 3, 2006 – ALGOR, Inc. announced that it has hired the architectural firm of Next Architecture to expand its O'Hara Township world headquarters to accommodate additional staffing planned this year.

The expansion will take place in phases, beginning with upgrades to the existing facility. The construction firm of A. Martini & Co., Inc. has been selected to perform the work in the first phase. The company is planning to complete the expansion, which will provide about 50 percent more working space, by the end of 2006.

According to CEO Michael Bussler, "We are hiring for both our ALGOR engineering software company and our Inecom Entertainment Company." Both are divisions of the parent company - ALGOR, Inc. "Overall corporate growth was over 12 percent last year and we anticipate even higher for 2006," said Bussler.

Bussler added, "To respond to emerging global opportunities for our core engineering software, which is used by both the largest companies and the smallest firms to speed up their product design process while improving quality and lowering costs, we are hiring in several areas. These areas include sales, marketing and software development.

"Geographically, we are expanding our software operation into the Pacific Rim for the first time and we are strengthening our existing European connections. Additionally, we are seeing an increase in demand for our engineering products domestically.

"Another factor which will fuel growth in 2006 is FEMPRO, a new product being launched at this time, which will enable ALGOR software to add value to engineering software produced by competing companies.

"At the Inecom division, where sales have increased by fifty percent in 2005, we are hiring to expand our marketing reach. Additionally, we are seeking third-party partners to augment our captive production capacity and produce more titles to feed our expanding network of retail partners. These partners include Barnes & Noble, Best Buy, Borders, Amazon.com, Wal-Mart, Target and more.

"An important factor in the growth of the entertainment division was the September release of the Gene Wilder-narrated EXPO - Magic of the White City. This product exceeded our initial sales forecasts and we expect it to continue to do well.

"Planned releases for 2006 include Horses of Gettysburg, which is narrated by Ronald F. Maxwell, director of the very successful Gods and Generals. Mr. Maxwell also appears in a 25-minute on-screen interview about filmmaking. In addition, we plan to release a significant feature documentary in November, Minutes of World War I. Another project in the works involves utilization of footage from the making of Gods and Generals under license from Turner Enterprises, Inc.," concluded Bussler.

To accommodate growth in both divisions, ALGOR plans to hire additional staffing for its infrastructure, including its information technology department. In addition, the company plans to begin selling computer software that it has developed for image processing and Internet web page development.

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