68% Increase in Revenues for Fiscal Year 1997, May 31.

TORRANCE, CA--(BUSINESS WIRE)--Aug. 7, 1997--Hi-Shear Technology Corporation (AMEX:HSR) today announced its results for the fiscal year ending May 31, 1997. Revenues for fiscal 1997 were $17.3 million up 68% as compared to $10.3 million in fiscal 1996. A net income of $1.0 million was reported for the 1997 fiscal year. This compares to a net loss of $1.3 million in fiscal 1996, which included a one-time charge for a discontinued product. Revenue and order increases resulted from the growth in commercial satellite launches. Earnings per share for fiscal 1997 was $.15 versus $(.20) for the prior year. Average shares for fiscal years 1997 and 1996 were 6.631 and 6.594 million respectively.

New orders booked during fiscal 1997 totaled approximately $20.1 million, a 52% increase over the $13.2 million booked in fiscal 1996. The company was also awarded a long term United States Air Force contract with an estimated value of $20 million over five years. Year-end backlog was $16.1 million for 1997 versus $15.8 million for the prior year.

Mr. Thomas Mooney, Chairman and President, noted that, "...Orders received during the fiscal year increased substantially over the orders received in the prior year. There is a direct correlation between our growth and the growth of the commercial space industry. Our products are key components on the launch vehicles and satellite deployment systems used today. Hi-Shear products are being used by all the major companies who build and deliver the communications, broadcast, and positioning satellites, and we are presently signing long term contracts extending beyond the year 2000. We expect our product mix, which is now 60% commercial space based, to increase to over 80% in the next three years. The combination of our long term Air Force contract through 2002 and our growing commercial space business provides us a solid business base for years to come."

Gross profits increased threefold to $4.2 million, averaging 24.3% of revenues as compared to $1.4 million or 13.5% of revenues in fiscal year 1996. Mr. Mooney commented, "...the rise in gross profitability resulted from a higher volume of product shipments as well as improved effectiveness in the use of labor and materials."

Hi-Shear Technology Corporation provides aerospace and commercial products in applications where safety, performance and high reliability are essential. It develops and produces advanced systems and products that are primarily used worldwide in commercial space satellites, launch vehicles, and government programs. The Company is also continuing to adapt its technology to produce advanced, competitively priced products for commercial markets such as emergency rescue equipment, industrial cutting tools, inflator assemblies for automotive airbag systems and high security locks.

This release, as it relates to product announcements and other Company matters, contains forward-looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, risks related to market acceptance of and demand for the Company's new commercial products, dependence on the uncertainty of government budgetary issues, primary government contracts, and intellectual property rights.

The Company's Form 10-KSB will be filed with the Securities and Exchange Commission on or about August 8, 1997. The 10-KSB will be available through Edgar or please contact Ms. Linda A. Nespole, [phone].

HI-SHEAR TECHNOLOGY CORPORATION
BALANCE SHEET
May 31, 1997

ASSETS

Current Assets
 Cash                                        $       19,000
 Accounts receivable                              6,307,000
 Inventories                                      2,633,000
 Prepaid expenses and other current assets           50,000
   Total Current assets                           9,009,000

Equipment, net                                    1,491,000

Other assets, net
 Deferred costs                                     298,000
 Other intangible assets                            115,000

                                             $   10,913,000

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
 Note payable to bank                        $    2,511,000
 Current portion of long-term debt                  128,000
 Accounts payable                                 1,763,000
 Accrued payroll and related costs                  423,000
 Other accrued liabilities                          456,000
    Total current liabilities                     5,281,000

Long-Term Debt                                       16,000

    Total liabilities                             5,297,000

Excess of Net Assets Acquired Over Purchase Price   829,000

Commitments and Contingencies

Stockholders' Equity
 Preferred stock, $1.00 par value; 500,000 shares authorized:
        no shares issued
 Common stock, $.001 per value;
  25,000,000 shares authorized;
   6,636,000 shares issued and outstanding            7,000
 Additional paid-in capital                       7,001,000
 Accumulated deficit                             (2,221,000)
    Total stockholders' equity                    4,787,000
                                             $   10,913,000

HI-SHEAR TECHNOLOGY CORPORATION
STATEMENTS OF OPERATIONS
Year Ended May 31, 1997

Revenues                                     $   17,325,000

Cost of Revenues                                 13,122,000

 Gross Profit                                     4,203,000

Selling, General and Administrative Expenses      2,560,000

Research and Development Expenses                   478,000

Amortization of Excess of Net Assets Acquired
 Over Purchase Price                               (138,000)

        Operating Income                          1,303,000

Interest Income                                       1,000

Interest (Expense)                                 (271,000)

  Income before provision for income taxes        1,032,000

Provision for Income Taxes                           11,000

  Net Income                                      1,021,000

Net Income Per Common and Common
 Equivalent Share                                      $.15

Weighted Average Number of Common and Common
 Equivalent Shares Outstanding During the Year    6,631,000

CONTACT: Linda A. Nespole, 310/784-7821