BEIQ Bei Technologies (MM)

BEI Technologies, Inc. Announces Torque Sensor License Agreement SAN FRANCISCO, Oct. 28 /PRNewswire-FirstCall/ -- BEI Technologies, Inc. (NASDAQ:BEIQ) is pleased to announce it has completed a technology license agreement and equity investment in NCTEngineering (NCTE) GmbH, a German corporation. The license is for a proprietary non-contact torque measurement technology with potential applications in the automotive, heavy equipment and industrial markets. BEI's license is exclusive for targeted markets in America and Japan, and includes certain non-exclusive rights for the rest of the world. NCTE products are currently used in Formula 1 racing cars, several industrial applications and have been approved as the working standard for torque measurement by the German measurement standards agency. "This investment represents an important strategy for BEI. We have identified non- contacting torque sensing as a potentially significant growth market for our company, and NCTE's magnetic torque sensing technology fits well in BEI's expanding product portfolio for automotive and industrial torque sensing requirements. BEI will provide both marketing and manufacturing capability to grow the market for this unique new sensor technology," commented Charles Crocker, Chairman and CEO. BEI's total investment of approximately $2.0 million represents a 6% equity stake in NCTE. BEI will also pay future royalties based upon its use of the licensed technology. BEI Technologies, Inc. (the "Company" or "Technologies") is an established manufacturer of electronic sensors, motors, actuators, rotary optical encoders, linear encoders with associated Digital Readouts (DROs), 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 rate sensors are being used in advanced vehicle stability control systems and a significant increase in the production of those sensors had been in progress from the middle of 1998 to FY 2004 except for a decrease in production in fiscal 2002 due to increased competition. The Company is currently transitioning to its next generation of automotive inertial quartz based sensor products, remotely mounted multi- sensor clusters with CAN Bus and a multi rate sensor package suitable for incorporation into electronic systems modules. The Company also manufactures electronic steering wheel position sensors, seat-memory modules, throttle position sensors, inertial navigation systems, and other devices used in transportation systems. 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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