BEIQ Bei Technologies (MM)

BEI Technologies, Inc. Marks Shipment of Ten Millionth Automotive GyroChip(R); Increases Manufacturing Capacity SAN FRANCISCO, July 23 /PRNewswire-FirstCall/ -- BEI Technologies, Inc. (NASDAQ:BEIQ) will record shipment of the ten millionth GyroChip automotive yaw rate sensor manufactured by its Systron Donner Automotive Division. According to Charles Crocker, Chairman and CEO, "Systron Donner has achieved this production milestone in a relatively short time. It was in October of 2002 when we announced the shipment of the five millionth GyroChip. We have continued to increase manufacturing capacity and reduce cost by utilizing technology to upgrade our sensors and electronics, while outsourcing non-core manufacturing. The result has been increasing global acceptance of our remarkable sensors, and we are pleased to announce the need for further manufacturing capacity." Based on understandings reached with customers, BEI will increase manufacturing capacity for its quartz fork and packaged nuggets to provide for increasing global demand for stability control braking systems. BEI will put in place approximately one million units of additional annual capacity per year in the core technology. This addition is necessary to meet expected combined customer requirements for BEI's automotive GyroChip sensors. The increase in capacity will require BEI to invest a further $3.6 million in equipment at its Systron Donner Automotive Division in Concord, California. According to Dr. Asad M. Madni, President and COO, "We expect to begin to utilize a portion of the increased production capacity in the December 2004 timeframe." BEI Technologies, 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. In addition, sales to manufacturers of transportation equipment including automobiles, trucks and off-road equipment have become a significant addition to the Company's business in recent years. The Company's micromachined quartz yaw rate sensors are being 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. 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 future timely development, acceptance and pricing of new products; potential impact of competitive products and their 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 and strategic partners, 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 for fiscal 2001. DATASOURCE: BEI Technologies, Inc. CONTACT: John LaBoskey, Senior Vice President/CFO of BEI Technologies, Inc., +1-415-956-4477 Web site: http://www.bei-tech.com/

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