ASHA's GERODISC Technology Wins Seven Automotive Awards

28 January 1999

ASHA's GERODISC Technology Wins Seven Automotive Awards; ASHA's Tier I Licensees and OEM Clients Recognized

    SANTA BARBARA, Calif.--Jan. 27, 1999--ASHA Corporation is pleased to congratulate its Tier I GERODISC(TM) licensees and the DaimlerChrysler Jeep Corporation for the industry-wide recognition of the 1999 Jeep Grand Cherokee Quadra-Trac II(R) transfer case and Quadra-Drive(TM) full-time four-wheel drive system.
    "These awards being received by our clients for systems they have developed utilizing GERODISC(TM) technology are some of the most prestigious awards in the automotive industry, representing consumer and automotive trade publications, as well as our industry peers. Each of us at ASHA are honored," said Jack McCormack, ASHA Chairman and CEO.
    The seven national automotive awards include being named as a finalist for the prestigious Automotive News / Ernst & Young LLP PACE(TM) Award for excellence in innovation among automotive suppliers. The 1999 PACE(TM) Awards are selected by an independent panel of distinguished judges consisting of industry, academic, and business leaders. A record setting 89 companies were considered.
    The 1999 Jeep Grand Cherokee Quadra-Drive(TM) four-wheel drive system was singled out as "Technology of the Year" by Automobile Magazine. The award sites the GERODISC(TM) hydraulic pump developed by ASHA as being at the heart of the system. ASHA has licensed the patented GERODISC(TM) coupling technology to New Venture Gear, a Tier I supplier for its innovative new Progressive Transfer Case(TM) utilized in the 1999 Jeep Grand Cherokee.
    In January, the North American International Auto Show in Detroit, Michigan named the Jeep Grand Cherokee the 1999 "North American Truck of the Year". North American Truck of the Year juror Christopher Jensen said, "The 1999 Jeep Grand Cherokee sets the new standard among sport utilities for the magical mixture of pavement prowess with an undiluted ability to handle hardcore, off-road challenges."
    Automotive Engineering Magazine selects Steyr's Geromatic(R) traction system as a top automotive product for 1998. AE referred to it as one of the "The Best of the Best" selected from more than one thousand candidates. ASHA Corporation's multiple license agreements with Steyr include the production of transaxles, all-wheel drive couplings, rear axles, and twin-disc rear axles.
    Popular Science Magazine's 11th Annual "Best of What's New" Awards singles out the 1999 Jeep Grand Cherokee and its Quadra-Drive(TM) four-wheel drive system. The Popular Science editors went on to congratulate this outstanding achievement in creating a new generation sport utility vehicle.
    The American Automobile Association (AAA) has given its "Top Car" Award to the 1999 Jeep Grand Cherokee as the best sport utility vehicle priced over $25,000. The evaluation will be published in the 1999 AAA Autograph(R) Book...an annual evaluation of new vehicles.
    Petersen Publishing names the 1999 Jeep Grand Cherokee 4-Wheel & Off-Road Magazine's "4x4 of the Year". "The all-new Jeep Grand Cherokee rose above some extremely tough competition," said Cole Quinnell, 4-Wheel & Off-Road editor. "Whether it is on-road performance and handling, or capability in treacherous off-road terrain, the 1999 Jeep Grand Cherokee masters it all. We were very impressed how this vehicle combines a true car-like on-road feel with the off-road capability of every Jeep vehicle. The Grand Cherokee is still king of the hill."
    ASHA Corporation develops advanced technology products and automotive design and manufacturing techniques for the global automotive industry, and licenses the award winning GERODISC(TM) traction control system. Currently, ASHA has twenty worldwide license agreements in place for 4WD, 2WD, and AWD platforms. On January 8, 1999, ASHA acquired McLaren Engines, Inc., a complete powertrain design, fabricating, and testing facility occupying over 55,000 square feet of office and laboratory space. During its thirty year record of service, McLaren Engines has serviced the research, development, and testing needs of more than one hundred clients, and is an ISO-9001 registered firm.

    The stock is traded on the NASDAQ SmallCap Market (Symbol:ASHA).

    Visit ASHA Corporation on the Internet at www.ashacorp.com, and McLaren Engines, Inc. at www.mclarenengines.com.