ABM Industries Announces First Quarter Financial Results; Company Achieves Record Revenue of $666.6 Million

"First quarter performance on a consolidated basis wasunsatisfactory," stated Henrik Slipsager, ABM's president and chiefexecutive officer. "Higher professional fees related to ABM'sSarbanes-Oxley compliance effort and our audit, as well asdisappointing performance in our Security subsidiary, SecurityServices of America (SSA), adversely impacted our results by $0.07 perfully diluted share in comparison to our December forecast.

"Within the businesses, our largest segment, Janitorial, achievedstrong 18.2% year-over-year increase in operating profit on top-linegrowth of 2.7%. Our Engineering segment experienced another quarter ofsolid revenue growth, posting a 15.3% increase over the same periodlast year. Operating profit for Engineering was up 6.2% compared tothe first quarter of fiscal 2005.

"During the quarter, we extended our geographic reach with theacquisition of Brandywine Building Services." Mr. Slipsager continued,"This strategic acquisition, with annual revenues of $9 million, addedto our lines of manufacturing and specialty cleaning services, whichis an area where we can leverage our expertise.

"We ended the quarter with $32 million in cash and cashequivalents, $245 million in working capital and no debt. Guidance forthe second quarter is $0.19 to $0.23 per diluted share, which includescosts associated with the independent investigation conducted underthe supervision of the Audit Committee. The second quarter has oneless workday compared to the same period last year. For the fiscalyear, the guidance remains as previously communicated, $0.85 to $0.95per diluted share.

"I am pleased to announce that Maryellen Herringer has acceptedthe role of Chairman of the Board for ABM Industries. Maryellen hascapably served on our board since 1993. I look forward to workingclosely with Maryellen in her new role."

Full-Year 2005

Mr. Slipsager concluded, "ABM has filed its Form 10-K for fiscal2005. While I was disappointed with the delay in filing, I realizethat in today's business environment, all necessary steps must betaken to ensure that the interests of stockholders are protected. I ampleased that the independent investigation conducted by ABM's AuditCommittee substantiated senior management's initial conclusions. Nowwe can focus squarely on improving the profitability and internalcontrols of SSA and can continue to build upon the operationalmomentum achieved by our other service businesses."

The Company's income from continuing operations for fiscal 2005was $43.6 million ($0.86 per diluted share), up 46.9%, compared to$29.6 million ($0.59 per diluted share) for fiscal 2004.

Sales and other income for the year ended October 31, 2005 were$2.59 billion, up 8.9%, compared to $2.38 billion in 2004. Net income,which includes income from discontinued operations, was $57.9 million($1.15 per diluted share), up 90.0%, compared to $30.5 million ($0.61per diluted share) for fiscal 2004. The Company realized an after-taxgain from the sale of its Mechanical services subsidiary of $14.2million ($0.29 per diluted share) in fiscal 2005.

Investor Meeting

ABM Industries Incorporated will host an investor meeting onThursday, March 30, 2006, at 9:30 a.m. Pacific Time (12:30 p.m.Eastern Time). The call will be hosted by Henrik Slipsager, presidentand chief executive officer, and Jim McClure, executive vice president& president of ABM Janitorial. A live broadcast over the Internet willbe accessible athttp://www.irconnect.com/primecast/06/abm_investorconf.html. Thewebcast will be archived online within one hour of the completion ofthe meeting and will then be available through the Investor Relationssection of the Company's Web site at www.abm.com. In addition to thewebcast, a limited number of toll-free telephone lines will also beavailable for listeners who are among the first to call (800) 524-4293within 15 minutes before the event. Telephonic replays will beavailable for 48 hours after the call by dialing (800) 642-1687, andthen entering ID #6902842.

About ABM Industries

ABM Industries Incorporated is among the largest facility servicescontractors listed on the New York Stock Exchange. With more than73,000 employees, ABM provides janitorial, parking, security,engineering and lighting services for thousands of commercial,industrial, institutional and retail facilities in hundreds of citiesacross the United States and British Columbia, Canada. The ABM Familyof Services includes ABM Janitorial; Ampco System Parking; ABMSecurity, which includes American Commercial Security (ACSS) andSecurity Services of America (SSA); ABM Facility Services; ABMEngineering; and Amtech Lighting Services.

Cautionary Statement Under the Private Securities LitigationReform Act of 1995.

This press release contains forward-looking statements that setforth management's anticipated results based on management's plans andassumptions. Any number of factors could cause the Company's actualresults to differ materially from those anticipated. These risks anduncertainties include, but are not limited to: (1) delays inremediating the material weakness in controls identified in theCompany's security business; (2) a change in the frequency or severityof claims against the Company, a deterioration in claims management,or the cancellation or non-renewal of the Company's primary insurancepolicies; (3) a change in actuarial analysis that causes anunanticipated change in insurance reserves; (4) inadequate technologysystems that cannot support the growth of the business; (5) labordisputes that lead to a loss of sales and expense variations; (6)acquisition activity slows or is unsuccessful; (7) a decline incommercial office building occupancy and rental rates lowers sales andprofitability; (8) weakness in airline travel and the hospitalityindustry that affects the results of the Company's Parking segment;(9) financial difficulties or bankruptcy of a major customer; (10) theloss of long-term customers; (11) intense competition that lowersrevenue or reduces margins; (12) an increase in costs that the Companycannot pass on to customers; (13) natural disasters or acts ofterrorism that disrupt the Company in providing services; (14)significant accounting and other control costs that reduce theCompany's profitability; and (15) other issues and uncertainties thatmay include: new accounting pronouncements or changes in accountingpolicies, labor shortages that adversely affect the Company's abilityto employ entry level personnel, legislation or other governmentalaction that detrimentally impacts the Company's expenses or reducessales by adversely affecting the Company's customers, unanticipatedadverse jury determinations, judicial rulings or other developments inlitigation to which the Company is subject, a reduction or revocationof the Company's line of credit that increases interest expense andthe cost of capital, and the resignation, termination, death ordisability of one or more of the Company's key executives thatadversely affects customer retention or day-to-day management of theCompany. Additional information regarding these and other risks anduncertainties the Company faces is contained in the Company's AnnualReport on Form 10-K and in other reports it files from time to timewith the Securities and Exchange Commission. The Company undertakes noobligation to publicly update forward-looking statements, whether as aresult of new information, future events or otherwise.

Unaudited Financial Results
BALANCE SHEET SUMMARY
January 31, October 31,
2006 2005
----------------------------------------------------------------------
(UNAUDITED)
Assets
Cash and cash equivalents $32,095,000 $56,793,000
Trade accounts receivable, net 365,170,000 345,104,000
Other current assets 125,830,000 119,556,000
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Total current assets 523,095,000 521,453,000
Goodwill 245,379,000 243,559,000
Other intangibles, net 27,873,000 24,463,000
All other assets 115,541,000 114,235,000
----------------------------------------------------------------------
Total assets $911,888,000 $903,710,000
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Liabilities
Current liabilities $277,805,000 $275,074,000
Non-current liabilities 154,813,000 152,710,000
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Total liabilities 432,618,000 427,784,000
Stockholders' Equity 479,270,000 475,926,000
----------------------------------------------------------------------
Total liabilities and stockholders'
equity $911,888,000 $903,710,000
======================================================================


SELECTED CASH FLOW INFORMATION (UNAUDITED)

Three Months Ended January 31,
2006 2005
----------------------------------------------------------------------

Net cash flows from continuing operating
activities $(11,916,000) $11,250,000
Net operational cash flows from
discontinued operations - 1,413,000
----------------------------------------------------------------------
Net Cash (Used In) Provided By Operating
Activities $(11,916,000) $12,663,000

Net Cash Used In Investing Activities $(10,820,000) $(18,669,000)

Common stock issued $3,447,000 $8,595,000
Dividends paid (5,409,000) (5,183,000)
----------------------------------------------------------------------
Net Cash (Used In) Provided By Financing
Activities $(1,962,000) $3,412,000


INCOME STATEMENT (UNAUDITED)

Three Months Ended January 31, Increase
2006 2005 (Decrease)
----------------------------------------------------------------------
Revenues
Sales and other income $666,601,000 $638,165,000 4.5 %
Expenses
Operating expenses and cost of
goods sold 606,176,000 579,457,000 4.6 %
Selling, general and
administrative expenses 52,893,000 48,107,000 9.9 %
Intangible amortization 1,578,000 1,356,000 16.4 %
Interest expense 123,000 252,000 (51.2)%
----------------------------------------------------------------------
Total expenses 660,770,000 629,172,000 5.0 %
----------------------------------------------------------------------
Income from continuing
operations before income taxes 5,831,000 8,993,000 (35.2)%
Income taxes 1,841,000 3,370,000 (45.4)%
----------------------------------------------------------------------
Income from continuing
operations 3,990,000 5,623,000 (29.0)%
Loss from discontinued
operations, net of income taxes - (139,000) -
----------------------------------------------------------------------
Net Income $3,990,000 $5,484,000 (27.2)%
======================================================================
Net income per common share -
Basic
Income from continuing
operations $0.08 $0.11 (27.3)%
Loss from discontinued
operations - - -
----------------------------------------------------------------------
$0.08 $0.11 (27.3)%
======================================================================
Net income per common share -
Diluted
Income from continuing
operations $0.08 $0.11 (27.3)%
Loss from discontinued
operations - - -
----------------------------------------------------------------------
$0.08 $0.11 (27.3)%
======================================================================
Average Common And Common
Equivalent Shares
Basic 49,185,000 49,192,000 (0.0)%
Diluted 50,151,000 50,402,000 (0.5)%


SALES AND OPERATING PROFIT BY SEGMENT (UNAUDITED)

Three Months Ended January 31, Increase
2006 2005 (Decrease)
----------------------------------------------------------------------
Sales and Other Income
Janitorial $386,354,000 $376,123,000 2.7 %
Parking 105,721,000 101,126,000 4.5 %
Security 78,296,000 73,111,000 7.1 %
Engineering 66,939,000 58,048,000 15.3 %
Lighting 28,896,000 29,416,000 (1.8)%
Corporate 395,000 341,000 15.8 %
----------------------------------------------------------------------
$666,601,000 $638,165,000 4.5 %
======================================================================
Operating Profit
Janitorial $14,696,000 $12,432,000 18.2 %
Parking 1,639,000 2,388,000 (31.4)%
Security 175,000 (913,000) 119.2 %
Engineering 3,188,000 3,001,000 6.2 %
Lighting 335,000 681,000 (50.8)%
Corporate expenses (14,079,000) (8,344,000) 68.7 %
----------------------------------------------------------------------
Operating profit from continuing
operations 5,954,000 9,245,000 (35.6)%
Interest expense (123,000) (252,000) (51.2)%
----------------------------------------------------------------------
Income from continuing
operations before income taxes $5,831,000 $8,993,000 (35.2)%
======================================================================