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European Top Racing Team Will Use Traction Technology Developed by ASHA Corporation

14 August 1997

European Top Racing Team Will Use Traction Technology Developed by ASHA Corporation

    SANTA BARBARA, Calif., Aug. 14 -- ASHA Corporation
announces that it has signed an agreement with Automobiles
Peugeot of Velizy, France, to develop GERODISC(TM) differentials for its race
cars which compete in the German Supertourisme and Belgian Sedan racing
series.  The agreement covers purchase of racing differential units containing
ASHA's patented traction technology, and exclusivity fees during 1997-98.
Financial details were not disclosed.
    Peugeot is a leading French automobile manufacturer and is the reigning
German and Belgian racing champion.  The German Supertourisme series is now
widely recognized as the major league of touring sedan racing.
    "The formal agreement with Peugeot is a major accomplishment for ASHA in
Europe and for GERODISC technology," says ASHA European Director Claude
Dubois.  "It culminates nearly two years of product design development and
exhaustive testing.  Peugeot runs at the front, and they only become involved
with companies and technology that will keep them in front."
    "Peugeot is a dominant force in the ultra-competitive German Touring Car
Series," says ASHA Project Manager, Jeff Lowell.  "They excel in worldwide
racing activities, and ASHA is very pleased to be associated with Peugeot
Sport.  It says a lot about our GERODISC technology and the performance,
handling and safety advantages it provides to race car drivers.  They
typically push their vehicles to the operating limits and are looking for
proven technologies that can extend those limits and make them more
competitive."
    GERODISC is a self-contained hydromechanical device which consists of a
pump, piston, and set of clutches which fit inside the differential carrier.
The GERODISC unit limits wheel spin by automatically sensing when one wheel
begins to slip.  This increased slip activates the pump's output pressure
which, in turn, causes the clutches to engage thus smoothly delivering power
to the wheel with the most traction.  It continuously monitors and maintains
this torque balancing act regardless of which wheel begins to spin or lose
traction.  This provides a dynamic safety and handling feature that even race
cars without GERODISC technology do not offer, and all this activity is
totally transparent to the driver.
    GERODISC is the only known technology, according to Dubois, that is
compatible with all cars, vans, sport utility vehicles, and trucks, and can be
used on all types of vehicle platforms: front-wheel drive, rear-wheel drive,
all-wheel drive, and four-wheel drive.  In addition to improving vehicle
traction, handling, and safety, it will reduce weight, cost and projected
warranty exposure when compared to the current traction systems now being
used.
    ASHA Corporation, headquartered in Santa Barbara, develops advanced
technology products, and automotive design and manufacturing techniques for
the global automotive industry.  The stock is traded on the NASDAQ SmallCap
Market (Symbol: ASHA).

SOURCE  ASHA Corporation