Continental Teves' Electronic Stability Program Simulator Event to be Held At BEI Technologies' Systron Donner Division on August 6 & 7, 2003

SAN FRANCISCO, July 16 -- BEI Technologies, Inc. and Continental's automotive systems division, have joined together to bring Continental's "Safely There" Electronic Stability Control (ESC) Simulator to the Systron Donner Division of BEI Technologies, Inc. on August 6th and 7th, 2003 in Concord, California, where the key gyroscopic sensor that enables ESC to help keep drivers on the road, is manufactured.

The "Safely There" simulator is an 18-wheel trailer truck with hands-on opportunities to simulate the benefits of electronic stability control in driving situations. The simulator and associated learning center will be at the Systron Donner Division located at 2700 Systron Drive in Concord, California on August 6th and 7th. Systron Donner employees will be going through the simulator on August 6th. On August 7th at 11:00 a.m. City and Government officials will be invited to tour and participate. Local auto dealers will also have new vehicles on display with ESC installed. Their customers and the public will be invited to tour and participate from Noon to 5:00 p.m. PDT on August 7th.

Stability control is now an important driver safety issue in the United States, as the number of rollover crashes increases. Continental, a leading maker of technologies that improve the safety, comfort and fun of driving, is taking a leadership role to educate the public on the importance of Electronic Stability Control. SUV's and automobile roll-overs occur at a rate of 253,000 every year and have been in the forefront of American automotive concerns, accounting for an estimated 25% of total fatalities. While airbags and seat belts have been successful in reducing deaths; stability control helps prevent crashes from happening in the first place.

A Mercedes study in Germany and a separate Toyota study in Japan, where ESC has been in use for almost a decade, showed a 30-35 percent reduction in single vehicle crashes. These are among the most serious kinds of crashes involving death and injury. It is estimated that with as little as a 15% reduction in vehicle crashes, $35 billion per year could be saved in the United States with the use of stability control applications. When extrapolating Mercedes and Toyota data for the U.S., Electronic Stability Control could save between 5,000 - 8,500 lives per year. Electronic Stability Control is available today.

"We are very excited about having the 'Safely There' simulator at our Systron Donner Division and are proud to be part of this important educational opportunity. We encourage people to come out and learn about these significant safety features," stated Jerry Brasuell, Vice President and General Manager of BEI's Systron Donner Automotive Division.

BEI Systron Donner Automotive is an operating division of BEI Technologies, Inc. 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. The Company's micromachined quartz yaw rate sensors are being used in advanced vehicle stability control systems and a significant increase in the production of those sensors has been in progress since the middle of 1998. BEI also manufactures electronic steering wheel position sensors, seat-memory modules, throttle position and pressure sensors and other devices used in transportation systems.

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 future timely development, acceptance and pricing of new products; potential impact of competitive products and their 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 and strategic partners, 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 2002.