GENCOR ENGAGES MORGAN KEEGAN TO DRIVE THE COMPANY'S ACQUISTION STRATEGY

December 20, 2007- Gencor Industries, Inc. (GENC/NASDAQ), announced today that it has engaged Morgan Keegan & Company, Inc. to target and advise the Company regarding potential acquisitions. Morgan Keegan will assist in the identification of potential acquisition candidates, provide valuation analysis, support due diligence and assist the Company in all aspects as may be required to facilitate acquisitions.

"We are pleased to partner with Morgan Keegan to accelerate our acquisition strategy," stated E.J. Elliott, Gencor's Chairman. "Gencor is well positioned financially to move quickly for strategic transactions."

Steve Hunter, Senior Vice President in the Investment Banking group of Morgan Keegan added "We are excited about working with Gencor. We believe our focus on high quality merger and acquisition services will enable us to be a strong partner for Gencor. Gencor can be an ideal strategic buyer for many quality companies seeking a strong financial owner, continuity for the future with the original family owners of Gencor, and being a publicly-owned company."

Gencor Industries is a diversified heavy machinery manufacturer for the production of highway construction materials, synthetic fuels and environmental control machinery and equipment used in a variety of applications.

Morgan Keegan is one of the largest regional full-service brokerage and investment banking firms, with over 4,000 employees providing services in some 300 offices. Additional information about Morgan Keegan can be found at www.morgankeegan.com.