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UNIDYNE Extends Bank Terms, Seeks New Credit Agreement

25 October 1999

UNIDYNE Extends Bank Terms, Seeks New Credit Agreement

    EXTON, Pa., Oct. 22 -- UNIDYNE Corporation
today announced it has reached an agreement to extend its line of credit with
Racine-based Johnson Bank through mid-December of 1999, as a result of a delay
in securing a new credit facility.
    The Exton, Penn.-based manufacturer of dynamometers, emission testing
equipment and specialized electric motors said the extended bank facility,
along with funds obtained through a major stockholder of the company,
continued profitability and improved operating cash flow, will provide the
financial resources for UNIDYNE to capitalize on opportunities in the
emissions testing market.  The previously announced Credit Committee approval
by Congress Financial Corporation to provide a new credit facility for working
capital will not be going forward.
    "While it would have been better that a new and larger credit facility be
in place at present, we are in discussions with a number of funding sources
that have the capacity to provide the desired credit facility for UNIDYNE to
achieve its growth strategy," said Wayne Lorgus, UNIDYNE president and chief
financial officer.  "The funding facilitated by our major stockholder in
addition to the Johnson Bank credit extension will help provide us the
flexibility to continue to penetrate the emissions-testing and specialty
equipment markets, and we remain focused on this near-term opportunity."
    Exton, Penn.-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 approximately
180 people at facilities in Kenosha, WI; San Francisco, CA; Anaheim, CA; 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.