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HARRIER SELLS STOCK OF ANTI-POLLUTION SUBSIDIARY

 HARRIER SELLS STOCK OF ANTI-POLLUTION SUBSIDIARY
 LOS ANGELES, July 15 /PRNewswire/ -- Harrier, Inc. (NASDAQ: HARE)


today said it transferred ownership of 100 percent of the shares of its Zurich, Switzerland-based HDC A.G. subsidiary to an unidentified German investor. HDC A.G. holds certain territorial manufacturing and distribution rights to the Harrier Diesel Cleaner, a proprietary device which reduces polluting emissions from diesel-powered vehicles and power generators.
 According to Kevin DeVito, Harrier's vice president-U.S. Operations, the agreement provides for the investor to assume both the management and the ongoing costs of the subsidiary's operations. These include the manufacturing and distribution cost of units for diesel retrofit and OEM markets in Europe and Asia with the exception of Scandinavia and Japan, where distribution agreements already exist. Harrier will continue to own the worldwide rights to all HDC patents and trademarks, and will receive a $350 royalty in each unit sold in the applicable territories. Furthermore, the company retains exclusive rights to manufacture and sell the product in North, Central and South America.
 DeVito pointed out that the transfer of HDC A.G. stock, which was accomplished for a nominal amount of cash, did not automatically convey unrestricted ownership and freedom to dispose of the operation. If Harrier's royalty income under the contract does not equal or exceed SFr. 500,000 (approximately $320,000) over the next three years, the rights granted under the contract are rescinded and revert to Harrier. In the interim both Harrier and the investor can agree to sell those rights provided the proceeds are shared between them (i.e., 60 percent to Harrier if it is a finder in a transaction, 40 percent if it is not.) When the total amount received by Harrier in royalties or lump sum payments exceeds SFr. 3.5 million (approximately $2.6 million) the ownership of Harrier's patents relating to the territories will be transferred to the new investor. Royalties will continue to be paid to Harrier at the above rates for the life of the transferred patents.
 In an unrelated development, Harrier said that it has closed the first phase of its previously announced transaction relating to the transfer of patents, trademarks, manufacturing and certain distribution rights to the company's Bioptron(R) Lamp to a European investor and that a cash payment of approximately $2 million had been received.
 "As a result of these transactions," DeVito said, "Harrier has eliminated a substantial portion of its long term debt and improved its working capital position while dramatically reducing overhead expense."
 -0- 7/15/92
 /CONTACT: Kevin DeVito, vice president-U.S. operations of Harrier, 310-376-7721/
 (HARE) CO: Harrier Inc.; HDC A.G. ST: California IN: SU:


TS-SM -- NY051 -- 9536 07/15/92 12:17 EDT
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Publication:PR Newswire
Date:Jul 15, 1992
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