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UNIDYNE Corporation Acquires ELA Machine Co. Inc. d.b.a. H&R Manufacturing

26 March 1998

UNIDYNE Corporation Acquires ELA Machine Co. Inc. d.b.a. H&R Manufacturing

               Strengthens Management Team, Adds to Engineering
                        And Manufacturing Capabilities

    EXTON, Penn., March 26 -- UNIDYNE Corporation
today announced it has acquired Bridgeview, III.-based ELA Machine Co., Inc.,
d.b.a. H&R Manufacturing, a leading manufacturer and re-manufacturer of
engineered production machinery, equipment and systems.  Terms of the deal
were not disclosed.
    Exton, Penn.-based UNIDYNE is a manufacturer of dynamometers, emissions
testing systems, and variable speed drives and motors.  The Company also
announced Elliott L. (Les) Avery, president of H&R Manufacturing, will join
UNIDYNE's management team as president and chief operating officer.  John L.
Hankis will remain as executive vice president of H&R Manufacturing,
overseeing all operations of the acquired company.  H&R Manufacturing will
operate as a wholly owned subsidiary of UNIDYNE.
    "This acquisition brings UNIDYNE a profitable and complementary operation
and fills a critical need by adding depth to our management team," said C.
Eugene Hutcheson, UNIDYNE chairman and chief executive officer.  "UNIDYNE's
rapid growth and successful entry into the emissions testing market demands
enriched management resources.  With Les and John, we are gaining proven
leadership and strong manufacturing expertise.  This expertise, along with a
solid core business and the engineering resources of H&R, will be key drivers
of UNIDYNE's growth."
    Prior to H&R, Avery headed the Engineered Machinery Group at Global
Industrial Technologies and also led a number of manufacturing start-ups and
turnarounds.  This included extensive involvement with governmental and
regulatory agencies, which will be an important asset to UNIDYNE's emissions
testing efforts.  Hankis also has a diverse manufacturing management
background having built H&R's leadership position in the industry niches it
serves.
    H&R is a diversified manufacturer and re-manufacturer of production
machinery, equipment and systems.  The Company supplies engineered systems for
domestic and international manufacturing companies, including many Fortune 500
companies and their subsidiaries.
    UNIDYNE said the acquisition of H&R will expand its manufacturing and
engineering capabilities and will provide a strong complement to the Company's
Kenosha, Wisc.-based subsidiary, Dynamatic Corporation.
    "This marriage is a logical step in integrating UNIDYNE's component
expertise with H&R's systems efforts," Avery said.  "I am excited about the
challenges and opportunities that lie ahead for UNIDYNE.  We will grow our
niche businesses in specialty electric motors and controls, variable speed
drives and motors, and our production systems businesses, while sharpening our
focus and expanded resources on the tremendous growth presented by the
emerging emissions testing market."
    UNIDYNE is a leading manufacturer of emissions testing equipment and
dynamometers for the Environmental Protection Agency's (EPA) new mandated
enhanced testing program.  UNIDYNE is currently selling and installing
emissions test systems for programs in Pennsylvania and Virginia, and was the
first certified supplier in both states.
    Exton, Penn.-based UNIDYNE Corporation and its subsidiaries manufacture,
sell, service and finance a variety of products including vehicle emissions
testing systems, specialized electric motors, and variable speed drives and
controls.  UNIDYNE also manufactures engine and chassis dynamometer testing
systems for a variety of large industrial customers, focused on the automotive
and heavy equipment industries.  The Company employs 280 people at facilities
in Kenosha, Wisc., San Francisco, Calif., Anaheim, Calif., Bridgeview, Ill.
and Exton, Penn.
    Founded in 1955, H&R Manufacturing is a leading manufacturer and
re-manufacturer of production machinery and systems for companies worldwide.
The Company employs 20 people at its 30,000-square-foot headquarters and
manufacturing facility in Bridgeview, Ill.

SOURCE  UNIDYNE Corp.