Hathaway Reports Acquisition.

DENVER--(BUSINESS WIRE)--Sept. 3, 1998--Hathaway Corp. (Nasdaq:HATH) today announced the enhancement of its motion control business through the acquisition of all the outstanding shares of Ashurst Logistic Electronics Limited of Bournemouth, England (Ashurst).

Ashurst manufactures drive electronics and position controllers for a variety of motor technologies including stepper, DC brush and DC brushless motors as well as a family of static frequency converters for military and aerospace applications. Ashurst has a design and manufacturing facility which is ISO9001 certified and has extensive experience in power electronics design and software development required for the application of specialized drive electronics technology.

"Combining Hathaway's motors with Ashurst's drive products will allow us to better serve customers in North America as well as around the world by offering single source responsibility for these crucial automation components," commented Richard Smith, president and chief executive officer. "Through Ashurst, Hathaway can provide local technical support of its motor and drive products to the important European market."

For calendar year ended Dec. 31, 1997, Ashurst reported revenues of $353,000. For the fiscal year ended June 30, 1998, Hathaway's motion control business had revenues of $13,841,000 or 33% of the total revenues of Hathaway.

Headquartered in Denver, Hathaway is engaged in two major businesses - the power and process business which designs, manufactures and sells instrumentation and systems into the worldwide power and process industries and the motion control business which designs, manufactures and sells motion control products to a broad spectrum of customers throughout the world.

CONTACT: Hathaway Corp., Denver

Richard D. Smith, 303/799-8200