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UNIDYNE Delays Release of 10-K

8 April 1999

UNIDYNE Delays Release of 10-K

                     Responding to Nasdaq on Audit Issues

    EXTON, Pa., April 7 -- UNIDYNE Corporation
today announced it is working with the Nasdaq Stock Market to clarify
questions regarding the delay of UNIDYNE's year-end 1998 report on Form
10-Ksb.  Nasdaq halted trading this morning as it seeks additional information
from UNIDYNE.
    UNIDYNE reported in an 8-K filing with the SEC last week that its
auditors, Arthur Andersen LLP, took issue with certain of the Company's
internal controls over payroll and inter-company transfer of funds.  Arthur
Andersen resigned as UNIDYNE's auditor, contributing to the 10-Ksb filing
delay.
    "Though UNIDYNE differs in its view of the concerns raised by Arthur
Andersen, we have instituted measures to correct the perceived failures and
are in the process of finalizing a search for a new auditing firm," said C.
Eugene Hutcheson, chairman and chief executive officer of UNIDYNE.  "We are
working with Nasdaq to clarify this issue and expect to bring it to a speedy
resolution."
    Exton, PA-based UNIDYNE Corporation and its subsidiaries manufacture,
sell, service and finance a variety of products, including vehicle emissions
testing systems, specialized electric motors, and variable speed drives and
controls.  UNIDYNE also manufactures engine and chassis dynamometer testing
systems for a variety of large industrial customers, primarily in the
automotive and heavy equipment industries.  The Company employs 230 people at
facilities in Kenosha, WI; San Francisco, CA; Anaheim, CA; Hazelton, PA; and
Exton, PA.
    The statements contained in this news release include certain predictions
and projections that may be considered forward-looking statements under
securities law.  These statements involve a number of important risks and
uncertainties that could cause actual results to differ materially, including,
but not limited to, the performance of the emissions testing industry, certain
customer and affiliated companies, as well as other economic, competitive,
governmental and technological factors involving the Company's operations,
markets, services, products and prices.