BEI Technologies, Inc. Signs Follow-On Contract for a Minimum 9.3 Million GyroChip(R) Sensors Used in Automotive Stability Control

    SAN FRANCISCO, June 4 BEI Technologies, Inc.
announced today that it has recently signed a major follow-on
contract with an international automotive equipment supplier for quartz
GyroChip(R) sensors.  This Micromachined (MEMS) solid state sensor is
manufactured by BEI's Systron Donner Inertial Division, according to Charles
Crocker, Chairman and Chief Executive Officer of BEI Technologies.
    The contract covers a next generation cluster that integrates the GyroChip
rate sensor with accelerometers and digital interface electronics into a
compact single package for automotive stability control.  The contract
commences delivery in September of 2001 and will run through 2005.  This next
generation product will begin ramp-up in the third quarter of fiscal 2002 and
will replace the current configuration of Systron Donner products.  While this
transition may have a slowing effect on Systron Donner revenue in the first
two quarters of fiscal 2002, overall deliveries could exceed 9.3 million units
during the course of the contract.
    "We are particularly pleased with this agreement as it validates the
GyroChip sensor as the appropriate technology of the future and creates a
relationship which allows for continuing product evolution.  We expect BEI to
participate in development of even more advanced systems for platforms beyond
2005 that will evolve into more sophisticated safety, convenience and engine
management systems within the automobile," stated Crocker.
    "This important contract confirms that BEI's Systron Donner Inertial
Division has a significant long term opportunity in automotive stability
control, and has the potential to become a leading global supplier of next
generation rate sensors," concluded Crocker.
    BEI Technologies, Inc. is an established manufacturer of electronic
sensors, motors, actuators and motion control products used for factory and
office automation, medical equipment, military, aviation and space systems.
In addition, sales to manufacturers of transportation equipment including
automobiles, trucks and off-road equipment have become a significant addition
to the Company's business in recent years, in particular, sales of the
Company's micromachined quartz yaw rate sensors used in advanced vehicle
stability control systems.  BEI also manufactures electronic steering wheel
position sensors, seat-memory modules, throttle position and pressure sensors
and other devices used in automotive systems.  GyroChip is a registered
trademark of BEI Technologies, Inc.
    Except for historical information, this news release may be deemed to
contain forward-looking statements that involve risks and uncertainties,
including statements with respect to timely development, acceptance and
pricing of new products; impact of competitive products on volume and price;
the ability to manufacture products in sufficient volume on an efficient and
timely basis; general economic conditions as they affect the Company's
customers, as well as other risks detailed from time to time in the Company's
reports to the Securities and Exchange Commission, including the Company's
Form 10-K for fiscal 2000.

    CONTACT:  John LaBoskey, Senior Vice President and CFO of BEI
Technologies, Inc., 415-956-4477

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