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BEI Announces Approval of OpticNet Distribution

10 October 2000

BEI Technologies, Inc. Announces Approval of OpticNet Distribution and a Special Cash Dividend

    SAN FRANCISCO, Oct. 9 BEI Technologies, Inc.
announced today that the California Department of Corporations
has granted a permit authorizing the distribution of shares of the common
stock of OpticNet, Inc., presently a majority-owned subsidiary of BEI,
pursuant to Section 25121 of the Corporate Securities Law of 1968 as announced
in the preliminary Information Statement mailed to BEI Technologies'
stockholders, dated September 6, 2000.
    The BEI Technologies Board of Directors has approved the distribution of
shares of OpticNet's common stock to BEI Technologies, Inc. common
stockholders of record at the close of business on October 30, 2000,
immediately prior to the BEI Technologies stock dividend, effective the same
date (See related press release, "BEI Technologies, Inc. Declares One-for-One
Stock Dividend Doubling Shares Outstanding").  BEI Technologies' stockholders,
as of October 30, 2000, will receive one OpticNet common share for every two
shares of BEI Technologies held.  Cash will be paid in lieu of fractional
shares.  The mailing of OpticNet shares will occur on or about November 21,
2000 and will be mailed together with a final Information Statement to
stockholders.  These securities will be restricted initially and not tradable
by the holders.
    Additionally, the BEI Technologies Board of Directors announced a cash
dividend of $.05 per share of BEI Technologies common stock to holders of
record as of the close of business on October 30, 2000, payable November 21,
2000 to help defray the estimated tax liability of the average stockholder on
the receipt of the OpticNet stock and cash dividends.
    The business conducted by OpticNet is focused on the development,
production and marketing of fiber optic components and sub-systems primarily
for the telecommunications industry.