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ASHA Signs Multi-Million Dollar License Agreements With NVG, Inc.

3 February 1998

ASHA Signs Multi-Million Dollar License Agreements With NVG, Inc.

    SANTA BARBARA, Calif., Feb. 3 --- ASHA Corporation
(ASHA) announced today that on Thursday, January 29, 1998, it
completed signing a series of broad-based license agreements with New Venture
Gear, Incorporated (NVG), the world's largest manufacturer and designer of
transfer cases for four-wheel-drive vehicles (with annual production of more
than one million units), and a market leader in other related automotive
driveline products.
    New Venture Gear was the first company in the world to license, develop
and commercialize ASHA's Gerodiscs traction technology.  Initial market
introduction of NVG's all-new Progressive Transfer Case(TM) with ASHA
technology debuts later this year in Chrysler's 1999 Jeep Grand Cherokee.
    Under the new license grants, NVG will develop ASHA technologies into a
broad line of traction-control subsystems for driveline applications.  "Based
on our initial success with ASHA's technologies in our Progressive Transfer
Case(TM), we have agreed to feature these technologies in an expanded line of
products that will lead the way in redefining traction control," stated Fred
L. Hubacker, New Venture Gear President and CEO.
    Jack McCormack, ASHA Chairman and CEO, said, "The multiple licenses
granted to NVG today represents the largest single commitment we have received
in our history.  It was facilitated by the success NVG achieved in developing
the world's first Progressive Transfer Case(TM).  We're delighted with our
relationship with NVG and very excited about the opportunities that are
available to jointly realize widespread use of our Gerodisc(TM) technology."
    ASHA is the developer of GERODISC(TM), a fully automatic hydromechanical
traction control system that is superior to electronic traction control
systems.  When road conditions or weather cause wheels to lose traction and
spin freely, GERODISC(TM) seamlessly transfers torque away from the spinning
wheel to the wheel with traction.  Benefits of the system include enhanced
safety and handling, reduced wear on brakes and drivetrain, and reduced
weight.
    New Venture Gear's headquarters and worldwide product engineering center
are located in Troy, Michigan.  It has manufacturing facilities in East
Syracuse, New York and Muncie, Indiana.
    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).
    Visit ASHA's Website at http://www.ashacorp.com for additional
information.

SOURCE  ASHA Corporation