Hi-Shear Settles Ongoing Litigation

Hi-Shear Technology Corporation (NYSE AMEX: HSR) today announced that it has entered into a Settlement Agreement to close the Company’s ongoing litigation with the United Space Alliance (Alliance). The Settlement Agreement results in an increase to operating income of approximately $1.8 million for the quarter ended May 31, 2009.

Pursuant to the agreement, the Company shall: consider its judgment against Alliance to be satisfied and dismiss its pending actions in the Florida court of appeal and the U.S. Supreme Court, and pay Alliance four equal payments of $400,000 each, over a 9 month period as settlement of Alliance’s claims for legal fees and costs. This Settlement Agreement provides for mutual releases, resolves all ongoing disputes with Alliance, and does not constitute an admission of liability by any party. The Company has previously accrued $3,275,000 in addition to $153,000 of interest through February 28, 2009 regarding this litigation.

In addition, the Company will dismiss its amended complaint against Pacific Scientific Energetic Materials in a related case pending in Brevard County, Florida.

Hi-Shear Technology Corporation provides pyrotechnic, mechanical, and electronic products to prime aerospace customers for use in aerospace and defense markets 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, national defense, and government 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 products, dependence on the uncertainty of government budgetary issues, primary government contracts, and intellectual property rights.

For more information regarding this release or general information about the company contact Ms. Linda A. Nespole, 310-784-7821.