Hi-Shear Awarded Navy Contract for Up to $12.6 Million.

Business Editors

TORRANCE, Calif.--(BUSINESS WIRE)--Aug. 1, 2003

Hi-Shear Technology Corporation, Torrance, CA, (AMEX:HSR), was awarded by the Naval Surface Warfare Center, an estimated $12.6 million fixed-priced contract for up to 10,000 of its Acoustic Firing Devices (AFD), with annual contract releases for between 600 and 2,300 AFDs. The Acoustic Firing System objective is to provide explosive Ordnance Disposal divers with a safe firing system for underwater demolition operations. Work will be performed for this contract at Hi-Shear's facility in Torrance, CA, and is expected to be completed by 2008.

Hi-Shear Technology Corporation provides pyrotechnic, mechanical, and electronic aerospace and defense 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 space satellites, launch vehicles, and military defense programs.

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.

For further information, including investor packages, please contact Ms. Linda A. Nespole, [phone].