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OEA Reports Major New Inflator Business

22 September 1998

OEA Reports Major New Inflator Business; Value Of Multi-Year Awards Could Reach $87 Million

    DENVER, Sept. 22 -- OEA, Inc. today announced
that it has been awarded new air bag inflator programs expected to generate
approximately $21 million of additional revenue annually.  The total value of
these new awards could reach $87 million over the next four years.
    William R. Barker, president of OEA's Automotive Safety Products division,
said the new business is expected to amount to 1.1 million inflators on an
annualized basis.  Shipments will begin late in the second quarter and should
total 700,000 inflators for fiscal 1999.  These awards were made by one
longstanding and one new customer, and are for the North American market.
Barker noted that the new business is for driver and passenger inflators and
will further utilize OEA's existing high-volume manufacturing capacity.
    "These awards underscore the air bag industry's continuing confidence in
our inflator technology, reliability and competitiveness," said Barker.  "We
are very pleased with this new business and with the expanding relationships
with new and existing customers.
    "We continue to improve our cost structure and strengthen our commitment
to technology development and innovation that will lead to new and higher
performing products," Barker added.
    OEA is the technology leader and a major manufacturer in the air bag
inflator and initiator industry.  The Company is also a leader in the design
and manufacture of personnel escape systems for military aircraft and high-
reliability devices for missile and aerospace applications.
    Certain of the information set forth above, including statements regarding
the potential value of new air bag inflator programs, future product demand,
customer relationships, Company strategy, its soundness, Company growth and
profitability, the air bag markets, air bag demand, sales volume increases,
margin potential, technology development and leadership, as well as other
statements or implications regarding future events, are "forward-looking
statements" for purposes of 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 filed 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.