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Varlen Announces Expanded Rights to the Mechanical Diode(R) One-Way Clutch

31 October 1997

Varlen Announces Expanded Rights to the Mechanical Diode(R) One-Way Clutch

    NAPERVILLE, Ill., Oct. 31 -- Varlen Corporation
, announced today that its automobile products business has
acquired expanded rights to the Mechanical Diode(R) one-way clutch from
Epilogics, L.P.
    The one-way clutch is an innovative, patented product that is currently
being manufactured by Varlen for automotive automatic transmissions.
    Richard L. Wellek, chairman and CEO of Varlen, commented "that the
purchase of expanded rights encompasses world-wide opportunities in the
automobile industry as well as applications for trucks, tractors and other
equipment.  This device has great growth potential because of its superior
performance characteristics and competitive price."
    Varlen's automotive business, which has recognized expertise in
developing, manufacturing and bringing to market the one-way clutch, will be
used to continue to expand this innovative technology.  With this acquisition,
all other clutch licenses for the technology outside the U.S. and outside the
auto industry have been assigned to Varlen.
    As a result of this acquisition, Epilogics, the original one-way clutch
patent holder, has decided to exit the clutch business.  This also brings to
an end litigation between the parties in the Federal District Court in
Richmond, Virginia.
    Varlen is a leading manufacturer of precision engineered transportation
products for the railroad, heavy-duty truck/trailer and automotive industries,
and petroleum analyzers.  The company, headquartered in a Chicago suburb,
manufactures its products in 24 facilities in the United States and Europe and
sells them to customers around the world.  Varlen's common stock is traded on
Nasdaq's National Market under the symbol VRLN.
    This news release contains forward-looking statements based upon
assumptions about a number of important factors and involve risks and
uncertainties that could cause actual results to differ materially from what
is stated here.  These risks may be detailed from time-to-time in Varlen's
Securities and Exchange Commission filings.  Varlen assumes no obligation to
update its forward-looking statement.

SOURCE  Varlen Corporation