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BEI Technologies Grants Auto Sensor Sublicense to Toyota

27 January 2000

BEI Technologies Grants Auto Sensor Sublicense to Toyota

    SAN FRANCISCO, Jan. 27 -- BEI Technologies, Inc.
announced that its Systron Donner Inertial Division has granted
a limited sublicense to Toyota Motor Corporation to make and use a
micromachined quartz rotation rate sensor under a Japanese patent controlled
by BEI, according to Charles Crocker, chairman, president and chief executive
officer.
    BEI Technologies is the world's leading manufacturer of solid state
gyroscopic rate sensors that are used in numerous stability control
applications, including advanced electronic stability control systems for
automobiles and other vehicles.  BEI-produced GyroChip(R) sensors are offered
as a part of popular automotive safety systems known variously as
StabiliTrak(TM), "ESP", "Electronic Stability Program", or "Active Handling."
    Crocker stated, "We are pleased to have reached a cordial agreement with
Toyota on this matter.  Toyota's considered decision to use the proprietary
BEI quartz sensor technology in their own vehicles is a further testimony to
the basic performance and reliability that is inherent in BEI's unique
automotive quartz rate sensors."
    The sublicense limits Toyota's use of the BEI technology only to Toyota
manufactured vehicles intended for sale and use in Japan.  The sensors will be
used in electronic stability control systems offered by Toyota.  Financial
terms of the agreement were not disclosed.
    BEI indicated that it remains free to sell BEI quartz rate sensors to
other Japanese car companies in Japan through its marketing partner, Akebono
Brake Co., and that sales to Toyota of BEI-produced sensors through Akebono
will also be possible.  BEI stated that it does not foresee that the agreement
will have a material impact on its results of operations.
    BEI Technologies, Inc., through its principal subsidiary, BEI Sensors &
Systems Company, Inc., is an established manufacturer of electronic sensors,
motors, actuators and motion control products used for factory and office
automation, medical equipment, military, aviation and space systems, and
transportation equipment including automobiles, trucks and off-road equipment.
The Company's micromachined quartz yaw rate sensors are used in advanced
vehicle stability control systems and a significant increase in the production
of those sensors has been in progress since the middle of 1998.  BEI also
manufactures electronic steering wheel position sensors, seat-memory modules,
throttle position and pressure sensors and other devices used in automotive
systems.  GyroChip(R) is a registered trademark of BEI Sensors & Systems
Company, Inc.  StabiliTrak(TM) is a trademark of General Motors Corporation.

    Except for historical information, this news release may be deemed to
contain forward-looking statements that involve risks and uncertainties,
including statements with respect to timely development, acceptance and
pricing of new products; impact of competitive products and price; the ability
to manufacture products in sufficient volume on an efficient and timely basis;
general economic conditions as they affect the Company's customers, as well as
other risks detailed from time to time in the Company's reports to the
Securities and Exchange Commission, including the Company's Form 10-K Annual
Report for fiscal 1999.