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ASHA Corp. Royalty Stream Begins With New Jeep Grand Cherokee

18 August 1998

ASHA Corp. Royalty Stream Begins With 1999 Jeep Grand Cherokee Production

    SANTA BARBARA, Calif.--Aug. 18, 1998--ASHA Corp. has turned a major corner toward automotive industry-wide acceptance of its Gerodisc(TM)) product, according to Steve Sanderson, its chief financial officer.
    In the past, ASHA derived its income from license fees paid to ASHA for the right to develop and produce its Gerodisc(TM) product. These license fees are, however, periodic and dependent upon the completion of license agreements. The eventual royalties that flow from such agreements represent a steady and consistent income stream, once the production of licensed product has commenced.
    The advanced royalties from NVG transfer cases in the Jeep Grand Cherokee represent the first ongoing income stream to ASHA from any source, according to Sanderson. But, regardless of the number of OEM vehicle platforms utilizing Gerodisc(TM), Sanderson expects ASHA's overhead to remain constant at or near current levels.
    "Now that Jeep Corporation has begun its product launch, all of us at ASHA are delighted at the volume of very positive press associated with the 1999 Grand Cherokee," stated Jack McCormack, ASHA Corporation Chairman and C.E.O.
    ASHA Corp., headquartered in Santa Barbara, California, develops advanced technology products and automotive design and manufacturing techniques for the global automotive industry. The stock is traded on the NASDAQ SmallCap Market (Symbol: ASHA)
    Visit ASHA's Website at http://www.ashacorp.com for further information.