BEIQ Bei Technologies (MM)

BEI Technologies, Inc. Increases Financing Capacity SAN FRANCISCO, Dec. 17 /PRNewswire-FirstCall/ -- BEI Technologies, Inc. (NASDAQ:BEIQ) is pleased to announce that it increased its current line of credit and executed a new note in support of the Newall Measurement Systems acquisition. To fund the recent acquisition of Newall Measurement Systems, BEI has executed a four year, $12 million note with an interest rate of 4.9%. In conjunction with this financing, Union Bank of California has agreed to increase the current line of credit from $25 million to $35 million to support increased potential operating cash requirements. The term of the line of credit has been extended to January 2007. BEI Technologies, Inc. (the "Company" or "Technologies") is an established manufacturer of electronic sensors, motors, actuators, rotary optical encoders, linear encoders with associated digital readouts (DROs), and motion control products used for factory and office automation, medical equipment, military, aviation and space systems. In addition, sales to manufacturers of transportation equipment, including automobiles, trucks and off-road equipment, have become a significant addition to the Company's business in recent years. The Company's micromachined quartz rate sensors are being used in advanced vehicle stability control systems and a significant increase in the production of those sensors had been in progress from the middle of 1998 to FY 2004 except for a decrease in production in fiscal 2002 due to increased competition. The Company is currently transitioning to its next generation of automotive inertial quartz based sensor products, remotely mounted multi-sensor clusters with CAN Bus and a multi rate sensor package suitable for incorporation into electronic systems modules. The Company also manufactures electronic steering wheel position sensors, seat-memory modules, throttle position sensors, inertial navigation systems, and other devices used in transportation systems. Except for historical information, this news release may be deemed to contain forward-looking statements that involve risks and uncertainties, including statements with respect to future timely development, acceptance and pricing of new products; potential impact of competitive products and their price; the ability to manufacture products in sufficient volume on an efficient and timely basis; general economic conditions as they affect the Company's customers and strategic partners, as well as other risks detailed from time to time in the Company's reports to the Securities and Exchange Commission, including the Company's Form 10-K for fiscal 2003. DATASOURCE: BEI Technologies, Inc. CONTACT: John LaBoskey, Senior Vice President/CFO of BEI Technologies, Inc., +1-415-956-4477, or http://www.bei-tech.com/ Web site: http://www.bei-tech.com/

Copyright