ASHA Corporation Announces 31% After Tax Profit

11 November 1998

ASHA Corporation Announces 31% After Tax Profit

    SANTA BARBARA, Calif.--Nov. 10, 1998--ASHA Corporation reported today that the company earned $0.20 per diluted share, or $0.21 per basic share, for the year-ended September 30, 1998. The previous fiscal year had a loss of $0.39 per basic share according to Steve Sanderson, the company's Chief Financial Officer. ASHA posted a $1,789,875 profit, or a 31% return on sales of $5,684,883 for the current fiscal year ended September 30, 1998. This contrasts with a loss of $2,908,955 on $1,295,131 sales for the previous fiscal year ended September 30, 1997.
    Jack McCormack, ASHA's Chairman and CEO, indicated that 1998 is the first year in which the company has begun to collect an ongoing stream of royalties from the production of its GERODISC(TM) system technology.
    "We expect that the positive results obtained in fiscal 1998 will increase as more of the automotive platforms committed to the GERODISC(TM) technology, such as Chrysler's 1999 Model Jeep Grand Cherokee, go into production. ASHA, at this time, has approximately twenty licenses for GERODISC(TM) system technology currently in force, and we fully expect to see broad platform utilization within the model years 2000 and 2001," stated McCormack.
    "Regardless of the number of new OEM vehicle platforms utilizing GERODISC(TM) technology, ASHA expects overhead to remain constant at or near current levels," added Sanderson.
    ASHA Corporation, 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.