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SI Handling Systems Awarded $2,500,000 Contract by BMG

17 June 1999

SI Handling Systems Awarded $2,500,000 Contract by Entertainment Industry Leader, BMG

    EASTON, Pa., June 16 -- SI Handling Systems, Inc.
, a leader in the integration of automated materials handling
systems, announces that it has been awarded a contract valued at approximately
$2,500,000 by entertainment industry leader, BMG.
    SI will furnish and install a gantry-based automated picking system to
automate the slower moving items for BMG's Music Club operation in Duncan, SC.
This gantry system will be integrated, via conveyor and controls, with
existing systems already installed by SI.  This new system will complete the
total automation of BMG's SKU's (stock keeping units), from the fastest moving
items to the slowest moving items and will be the fifth automated system for
BMG, including an automated returns system, installed by SI.
    "Working with BMG to provide a systems solution to this application
required innovation from both companies.  We are proud to have customers like
BMG," says Bill Johnson, SI's President.  "We continue to build on the
strength of our customer relationships and are encouraged by the demand for
our sophisticated products, as evidenced by the receipt of approximately
$18,000,000 in orders during the first quarter of fiscal 2000."
    With headquarters in Easton, PA, SI Handling Systems, Inc. designs,
manufactures, installs, and services fully automated, integrated materials
handling systems that improve productivity in manufacturing and increase the
speed of the delivery of products being offered by companies worldwide.

    Cautionary Statement.  Certain statements contained herein are not based
on historical fact and are "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995.  Among other things,
they regard the Company's earnings, liquidity, financial condition, and
certain operational matters.  Words or phrases denoting the anticipated
results of future events such as "believes," "estimates," "may," "will," and
similar expressions that denote uncertainty, are intended to identify such
forward-looking statements.  The Company's actual results, performance, or
achievements could differ materially from the results expressed in, or implied
by, such "forward-looking statements": (1) as a result of risks and
uncertainties identified in connection with those forward-looking statements,
including those factors identified herein, and in the Company's publicly filed
reports; (2) as a result of factors over which the Company has no control,
including the strength of domestic and foreign economies, sales growth,
competition, and certain cost increases, or (3) if the factors on which the
Company's conclusions are based do not conform to the Company's expectations.