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OEA to Lay Off 150 Workers in Denver

22 July 1998

OEA Announces Automotive Restructuring

    DENVER, July 21 -- OEA, Inc. today announced that
it will reduce its workforce by 150 employees or 15%, at its Denver Inflator
production facility.
    William R. Barker, President of OEA Automotive Safety Products, said "this
represents part of a comprehensive cost-reduction effort which will support
our goal of being the technology leader and lowest-cost manufacturer in the
automotive air bag inflator market.  These actions will enable us to meet our
growing customer demands during the next year with improved productivity and
technologically superior products, and to position OEA for new business.  We
are committed to maintaining our leadership position in this competitive and
rapidly growing market."
    Management expects today's actions to result in ongoing annual cost
savings of $5 million to $6 million offset by a one-time charge of
approximately $0.5 million to $0.7 million.
    OEA is a major manufacturer of air bag inflators and initiators, and a
leader in the design and manufacture of personnel escape systems for military
aircraft and high-reliability devices for missile and space applications.
    Certain of the information set forth above, including statements regarding
Company strategy, its soundness, technology leadership, the inflator market,
sales volume increases, and the benefits of cost reduction programs and
improved manufacturing processes, as well as other statements or implications
regarding future events, are "Forward-Looking Statements" for purposes of the
federal securities laws.  Actual results or events may differ materially from
these forward looking statements depending on a variety of factors.  Reference
is made to the cautionary statements under the caption "Forward-Looking
Statements" in OEA's Annual Report on Form 10-K for the year ended July 31,
1997 and the Company's report on Form 8-K filled on June 4, 1998 for a
description of various factors that might cause OEA's actual results to differ
materially from those contemplated by such forward-looking statements.