Electroglas Announces Stock Repurchase Plan ofAdditional One Million Shares.

SANTA CLARA, Calif.--(BUSINESS WIRE)--July 6, 1998--Electroglas, Inc. (NASDAQ:EGLS) today announced that it has completed its repurchase of one million shares of its common stock under a repurchase plan authorized by the Board of Directors in March 1996.

Under a Board of Director's resolution

dated May 19, 1998, the Company is authorized to continue repurchases for an additional one million shares beyond the initial program. The primary purpose of the repurchase program is to minimize the dilutive effect of the employee stock option and stock purchase benefit programs while continuing to maintain appropriate levels of equity incentives for Electroglas' work force. This repurchase represents approximately 5.1% of the Company's common shares outstanding as of March 31, 1998.

About Electroglas: Electroglas delivers essential tools for process management designed to enhance semiconductor companies' profitability. The Company's wafer probers, inspection systems and software solutions serve as data collection, management and analysis tools that semiconductor manufacturers depend on to improve their productivity and process control by optimizing sort-floor efficiency. Electroglas has been a leading supplier of wafer probers for over 35 years and has an installed base of more than 10,000 systems. The Company's stock trades on the NASDAQ National Market under the symbol "EGLS". The Company's World Wide Web site is located at www.electroglas.com.

    CONTACT: Electroglas, Inc.
              Gail Pagano, 408/727-6500