BEI Technologies, Inc. Increases Financing Capacity

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., [phone], or http://www.bei-tech.com/



Web site:  http://www.bei-tech.com/

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