---

OEA, Inc. Reports Fiscal Year Earnings

22 September 1997

OEA, Inc. Reports Fiscal Year Earnings

    DENVER, Sept. 22 -- OEA, Inc. , a Denver, Colorado
high-technology manufacturer of automotive safety and aerospace products,
reported record sales, operating profit and net earnings for the fiscal year
ended July 31, 1997.
    Ahmed D. Kafadar, Chairman and Chief Executive Officer, announced that net
sales and operating profit were $211,556,900 and $49,558,600, respectively, as
compared to prior-year sales and operating profit of $152,809,500 and
$39,066,300.  Net earnings and earnings per share were $35,441,300 and $1.73,
respectively, as compared to $25,542,500 and $1.25 in the prior year.
    Sales and net earnings for the fourth quarter were $60,334,200 and
$10,437,300, respectively, compared to sales of $45,594,800 and net earnings
of $6,715,300 for the prior-year fourth quarter.  Net earnings per share for
the fourth quarter were $.51 compared to $.33 for the same period last year.
    The 38% sales increase over the prior year was driven by a 46% increase in
automotive sales reflecting the overwhelming market acceptance of OEA's new
inflators.  Mr. Kafadar noted, "0EA achieved its goal of producing 3 million
inflators in the first year of production, and that customer commitments and
manufacturing capacity are in place to achieve the manufacturing goal of 8
million inflators in fiscal year 1998.  During fiscal year 1997 OEA added a
new 173,000 square-foot inflator facility and four new production lines for
passenger, driver and side impact inflators.  Production ramp-up is
progressing smoothly and on schedule.  At the end of fiscal year 1998 capacity
will be 15 million units per year."
    Aerospace sales increased 13% over the previous year.  However, operating
profit declined $2 million from the previous year as a result of investments
in new programs.  This shortfall in earnings resulted in a $.06 impact on EPS.
OEA anticipates improved profitability in Aerospace in the first quarter of
fiscal year 1998.
    OEA is a major manufacturer of air bag inflators and initiators, and also
a leader in the design and manufacture of personnel escape systems for
military aircraft and high-reliability devices for missiles and space
applications.

                                  OEA, Inc.
                              Financial Summary

                                 Three Months Ended       Twelve Months Ended
                                       July 31,                     July 31,
                               1997         1996          1997         1996
    Net Sales           $60,334,200  $45,594,800  $211,556,900 $152,809,500
    Operating Profit     12,719,200    9,767,400    49,558,600   39,066,300
    Other Income (Expense)2,171,900    1,033,700     5,745,400    1,641,300
    Earnings Before
     Income Taxes        14,891,100   10,801,100    55,304,000   40,707,600
    Federal and State
     Income Taxes         4,453,800    4,085,800    19,862,700   15,165,100
    Net Earnings        $10,437,300   $6,715,300   $35,441,300  $25,542,500
    Net Earnings Per Share    $0.51        $0.33         $1.73        $1.25
    Average Number of Shares
     Outstanding         20,551,001   20,511,665    20,539,993   20,499,373

SOURCE  OEA Inc.