Environmental

June 09, 2003

BEI TECHNOLOGIES, INC. AWARDED F-18 RETROFIT PROGRAM FOR QRS11 RATE SENSORS BY U. S. NAVY

SAN FRANCISCO, CA., June 09, 2003 - BEI Technologies, Inc. (Nasdaq: BEIQ) announced that the Naval Undersea Warfare Center, Keyport, WA (NUWC) awarded BEI's Systron Donner Inertial Division (SDID) a $1.3 million contract for an initial retrofit lot of F-18 (A-D) aircraft with QRS11 rate sensor gyros. The retrofit program will allow for a significant savings in total cost of ownership due to lower maintenance requirements and a longer product life.

"We are very pleased to receive this important award from NUWC, " said Dr. Asad Madni, President and COO of BEI Technologies, Inc. "This program continues the QRS11 product line heritage of success in critical military flight control systems."

Featuring small size, low cost, and low power, the QRS11 series is especially suited for guidance and control for commercial, aerospace and defense applications. Specific applications include aircraft, missiles, imaging and camera stabilization, vehicle dynamics testing and self-guided systems.

BEI SDID's Quartz Rate Sensor (QRS) technology features its patented GyroChip® technology consisting of a dual-ended quartz tuning fork rate sensor that offers outstanding performance which is adaptable to a wide variety of tactical vehicle and weapon applications.

BEI Systron Donner Inertial is an operating division of BEI Technologies, Inc. BEI Technologies, Inc. is an established manufacturer of electronic sensors, motors, actuators 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 yaw rate sensors are being used in advanced vehicle stability control systems and a significant increase in the production of those sensors has been in progress since the middle of 1998. BEI also manufactures electronic steering wheel position sensors, seat-memory modules, throttle position and pressure sensors and other devices used in transportation systems. GyroChip is a registered trademark of BEI Sensors & Systems Company, Inc.

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 2002.

All trademarks are properties of their respective companies.

For further information, please contact:
BEI Systron Donner Inertial Division
2700 Systron Drive
Concord, Calif. 94518
Tel: (925) 671-6400
Fax: (925) 671-6647
E-mail: sales@systron.com
www.systron.com