Pulse and Fil-Mag merger creates largest magnetics company in the world.

SAN DIEGO--(BUSINESS WIRE)--Oct. 16, 1995--Pulse Engineering Inc. (NASDAQ:PLSE) and Fil-Mag Inc. have agreed to merge effective Sept. 29, 1995.

The merger gives Technitol (ASE:TNL), the parent company for Fil-Mag, 100 percent ownership of Pulse Engineering.

The combined companies will be known as Pulse and will have joint revenues of approximately $140 million, making them the largest network, telecomm and power magnetics company in the world.

"We think this is a very positive move for both companies and for our combined customer base," said John Kowalski, the new president of Pulse.

"Pulse is known as a strategic leader in developing magnetics solutions that support new and emerging technologies. Fil-Mag has an excellent reputation for state-of-the-art automated manufacturing. The combination of the two means we now have the design and manufacturing base to support any customer's needs and allows us to differentiate ourselves from other magnetics companies."

Pulse provides intelligent solutions in the field of magnetics for telecommunications and power technologies. It will now have manufacturing facilities in Ireland, Taiwan, the Philippines, China and the United States, with 8,300 employees. The worldwide headquarters will be in San Diego.

"We want to assure Pulse and Fil-Mag customers that there will be no interruptions," said Kowalski. "We are committed to making this merger benefit everyone involved." Kowalski pointed out that customers can continue to purchase Pulse or Fil-Mag products, as both product lines will continue to be available.

Fil-Mag was the first company to incorporate fully automated manufacturing facilities in the magnetics industry.

Pulse is noted for developing the world's first commercially available high-voltage step-up transformer, the first digital delay line, the first DC/DC converter for ethernet applications, and the first ultra-low-profile package for PCMCIA Ethernet and Token Ring.

In addition to Kowalski as president, other new company officers are: John Houston, senior vice president-business units; Phil Brownlee, vice president of technology; Leonard Luner, vice president of Spectrum Systems; Douglas Kim, vice president manufacturing; Michael Brosnan, vice president Europe; and Eric Berthaud, vice president of sales and marketing.

CONTACT: Pulse Engineering Inc., San Diego

Gene Vicino, 619/674-8215

or

McQUERTERGROUP

Aaron Heinrich, 619/450-0030