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BEI ELECTRONICS REPORTS FISCAL THIRD-QUARTER RESULTS

 SAN FRANCISCO, Aug. 5 /PRNewswire/ -- BEI Electronics, Inc. (NASDAQ-NMS: BEII) reported net sales increased 7.6 percent to $37.0 million for the third quarter of fiscal 1993, as compared with $34.4 million in the third quarter of 1992, according to Peter G. Paraskos, president and chief executive officer. Net income was $1.0 million, or $0.15 per share, vs. $1.9 million, or $0.27 per share, a year earlier, a decline largely due to a timing change in the royalty payment to BEI under a technology licensing agreement, and to increased spending for medical products and other commercial research and development. The royalty fee was reported in third quarter of last year as opposed to the second quarter of 1993. Operating income was $2.0 million for the third quarter ended July 3, 1993, as compared with $2.1 million in the comparable quarter of fiscal 1992.
 Paraskos commented: "During the third quarter our industrial businesses reported sales and earnings which improved over both the prior-year period and the previous quarter. Sales in our Defense segment also increased, but earnings were down due to changes in the mix of items shipped. These Defense segment trends may continue, but we are nonetheless making progress in satisfying the increased requirements for documentation, testing and requalification of the HYDRA 70 Rocket System contract which was awarded to the company by the U.S. Army in 1992."
 "Our sales to medical markets expanded significantly over the prior year, primarily the result of our acquisition of Meditron Devices in July 1992 and Zinnanti Surgical Instruments in March 1993," Paraskos said. "Our investment in expanding our advanced medical technology business is proceeding well, although it continues to have a negative impact on our consolidated earnings as we build the foundation for future earnings growth."
 Paraskos also added that the company has successfully completed arrangements for a new, two-year credit facility with the Canadian Imperial Bank of Commerce.
 As reported last quarter, shipments under the HYDRA 70 Rocket System contract have been impacted as procedural requirements are resolved. This administrative process has been exacerbated by the need to replace some former government suppliers, who are no longer in operation, with in-house production. According to Paraskos, "We are continuing to address these challenges while at the same time dealing with the difficult competitive environment which confronts government contractors. Our response is to continue our investment to expand our solid commercial businesses, both medical and industrial."
 NINE-MONTH RESULTS
 For the first nine months of fiscal 1993, net sales totaled $105.5 million as compared with $109.6 million in the first three quarters of fiscal 1992. Net income was $3.1 million, or $0.46 per share, as compared with $4.6 million, or $0.67 per share, last year.
 BEI Electronics designs, manufactures and markets a wide variety of specialized sensors, motors, control systems and precision components for use in industrial, commercial, military and medical applications.
 BEI ELECTRONICS, INC.
 FINANCIAL HIGHLIGHTS
 (Unaudited)
 For the three months For the nine months
 ended ended
 July 3, June 27, July 3, June 27,
 1993 1992 1993 1992
 Net sales $36,998,000 $34,382,000 $105,472,000 $109,596,000
 Income before
 income taxes 1,616,000 2,771,000 4,868,000 7,211,000
 Net income 1,024,000 1,858,000 3,092,000 4,584,000
 Earnings per
 common share $0.15 $0.27 $0.46 $0.67
 Number of shares
 in computation 6,787,000 6,835,000 6,763,000 6,860,000
 -0- 8/5/93
 /CONTACT: Gary D. Wrench, senior vice president & CFO, BEI Electronics, 415-956-4477/
 (BEII)


CO: BEI Electronics, Inc. ST: California IN: CPR SU: ERN

SB-ML -- DE007 -- 9744 08/05/93 09:23 EDT
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Date:Aug 5, 1993
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