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BEI Technologies Expands Global Marketing

21 October 1998

BEI Technologies Expands Global Marketing of Automotive GyroChip Sensors

    SAN FRANCISCO, Oct. 21 -- BEI Technologies, Inc.
has signed an exclusive distribution agreement to market its
proprietary quartz GyroChip(R) sensors for automotive and transportation
applications in Japan and several Southeastern Asian countries, according to
Charles Crocker, BEI's chairman, president and chief executive officer.
    The agreement is with Akebono Brake Industry, Co., Ltd., a major
manufacturer in Japan and elsewhere of brake system components and friction
materials.  Akebono has been developing its automotive sensor business as an
adjunct to its core businesses and is presently a supplier of micromachined
linear accelerometers.  The agreement with BEI will provide Akebono with a
proven source of micromachined angular rate sensors that are an essential part
of new anti-spinout safety systems.
    BEI presently supplies its micromachined GyroChip sensor for various U.S.
and European automotive platforms through the Cadillac and Chevrolet units of
General Motors, as well as through Continental Teves AG + Co. OHG (the former
ITT Automotive brake group) for whom BEI is designated a strategic supplier.
    Crocker stated, "We are pleased to expand our global coverage with this
new agreement.  Akebono's engineers and technical credentials are first rate
and the company's established marketing relationships with all the major
Japanese automotive manufacturers will be essential to growing our sales in
Japan.  This agreement will yield only modest revenue for BEI in fiscal 1999,
but our joint goal with Akebono is to capture new business opportunities for
new automotive systems starting in 2000 and beyond.  Akebono's stated goal is
to increase their annual sensor turnover to more than 1O billion(Yen)
($87 million) by 2005."
    Akebono Brake Industry Co., Ltd. employs approximately 3,000 people and
has annual sales of approximately $1 billion.  Headquartered in Tokyo, it
operates factories at six sites in Japan.  In addition, Akebono has subsidiary
or joint venture manufacturing facilities in the USA, Europe and Asia, and R&D
facilities in Japan, France and Farmington Hills, Michigan.
    BEI Technologies, Inc., through its principal subsidiary BEI Sensors &
Systems Company, is an established manufacturer of electronic sensors and
motion control products used for factory and office automation, medical and
scientific equipment, military, aviation and space systems, and transportation
equipment including automobiles, trucks and off-road equipment.  BEI has
recently expanded its production of micromachined quartz yaw rate sensors used
in advanced vehicle stability control systems.  BEI also manufactures
electronic steering wheel position sensors, seat-memory modules, throttle
position and pressure sensors and other devices used in automotive systems.
GyroChip(R) is a registered trademark of BEI Sensors & Systems Company, Inc.
    Except for historical information, this news release may be deemed to
contain forward-looking statements that involve risks and uncertainties,
including timely development, acceptance and pricing of new products; impact
of competitive products and pricing; the ability to manufacture products in
sufficient volume on an efficient and timely basis; general economic
conditions as they affect the Company's customers, as well as other risks
detailed from time to time in the Company's SEC reports, including the
Company's Form 10-K Annual Report for fiscal 1997.