The Eastern Company Reports Results for the Third Quarter and Nine Months of 2005

The Eastern Company (AMEX:EML) today announced the
results of its operations for the third quarter and nine months of
2005. Sales for the quarter were $27.2 million compared to $25.5
million for the same period in 2004, a 7% increase, while net income
was $1.3 million, or $0.32 per diluted share, compared to the $1.5
million, or $0.40 per diluted share, reported in the third quarter of
2004, a 17% decrease.
   Net sales for the nine months ended October 1, 2005 were $80.9
million compared to $75.4 million for the first nine months of the
previous year, a 7% increase. Year to date earnings for the nine-month
period were $3.1 million, or $0.79 per diluted share, compared to $3.3
million, or $0.90 per diluted share for the same period in 2004, an 8%
decrease.
   Leonard F. Leganza, President and CEO stated, "All three segments
of the Company's operations experienced sales increases in the third
quarter compared to the prior year period. Several factors contributed
to the strong sales performance. This included a continuing demand for
the Sleeper Boxes we produce for Class 8 trailer trucks, increased
demand for our Smart Card systems furnished to the commercial laundry
market as well as the demand for our SearchAlert(TM) lock, a lock
which has been approved by the T.S.A. for locking checked bags while
traveling. We anticipate that sales in the fourth quarter and full
year will continue to be strong."
   Mr. Leganza also stated, "Of particular note, was that we
experienced higher demand in Canada for our mine roof anchors during
the third quarter. In addition, we continued to make progress in our
initiative to furnish our anchors to the China mining industry. Also
of note is that after several months of start-up operations, Eastern
Industrial, our Shanghai subsidiary, began shipping product to
non-affiliated customers during the quarter as we continue to increase
our capabilities.
   Mr. Leganza continued, "Our profit margins have been impacted by
the pressure of both external factors as well as internal decisions.
External factors such as increased costs of raw materials and energy
and pricing pressure from foreign competition are part of the current
business landscape, which require special efforts to overcome. In
addition, we have made internal decisions, such as expanding our
presence in China, which have had some negative impact on earnings.
However, we believe those decisions will yield positive results for
the future."
   Mr. Leganza concluded, "Our business backlogs and markets continue
to be strong and we anticipate they will remain strong for the
remainder of 2005 and into 2006."

   The Eastern Company is a 147-year-old manufacturer of industrial
hardware, security products and metal castings. It operates from nine
locations in the U.S., Canada, Mexico, Taiwan and China. The diversity
of the Company's products helps it to respond to the changing
requirements of a broad array of markets.

   Forward-Looking Statements: Information in this news release
contains statements which reflect the Company's current expectations
regarding its future operating performance and achievements. Actual
results may differ due to the many economic uncertainties that affect
the Company's business environment. Further information about the
potential factors which could affect the Company's financial results
are included in the Company's reports and filings with the Securities
and Exchange Commission. The Company is not obligated to update or
revise the aforementioned statements for those new developments.
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Statement of Consolidated Income (unaudited)

THE EASTERN COMPANY (AMEX - EML)

                      THREE Months Ended         NINE Months Ended
                      13 wks       13 wks       39 wks       39 wks
                   Oct. 1, 2005 Oct. 2, 2004 Oct. 1, 2005 Oct. 2, 2004
                   ------------ ------------ ------------ ------------
Net Sales           $27,204,815  $25,494,490  $80,893,693  $75,357,662

Net Income After Tax  1,256,367    1,506,435    3,070,338    3,343,534

Net Income Per Share:
       Basic              $0.35        $0.41        $0.84        $0.92
       Diluted            $0.32        $0.40        $0.79        $0.90

Weighted average
  shares outstanding:
      Basic          3,637,315    3,631,028    3,636,131    3,625,627
      Diluted        3,918,767    3,732,969    3,890,409    3,728,337
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