Harmon Industries NASDAQ: HRMN For Immediate Release

Charles M. Foudree (816) 229-3345 [email protected]

Harmon and BART Sign Contract

BART Invests in Future with Harmon Industries Technology

BLUE SPRINGS, MO (Monday, March 2, 1998) - Harmon Industries, Inc. announced the signing of a contract with the San Francisco Bay Area Rapid Transit District (BART) to provide a revolutionary technology called Advanced Automatic Train Control (AATC). The contract includes two phases - a development phase and an implementation phase - with a combined value of approximately $45 million. When completed in 2001, the AATC system will enable BART to significantly increase train and passenger capacity without adding tracks or vehicles. AATC also eliminates the need for another tunnel under the San Francisco Bay - an alternative BART considered when developing their plan to maintain high levels of passenger service after several major expansion programs.

AATC is based on an extremely reliable and completely wireless data radio network known as the Enhanced Position Location Reporting System (EPLRS), which was originally developed for the military. A unique aspect of the EPLRS technology is its ability to accurately determine the position of trains without relying on conventional track circuits. Harmon licensed the technology for use in railroad applications from Raytheon (formerly Hughes Aircraft) in September, 1997. By terms of the contract, BART will assist Harmon in the commercialization of EPLRS and will also license its own technology to Harmon for use on other railroads. AATC will be first implemented at BART and will control trains moving at 90-second headways and traveling at 80 miles per hour.

"We believe BART and Harmon both have reputations for being technology leaders in our industry. Our partnership in this project is a natural one and we are proud of BART's decision to work with Harmon," said Björn E. Olsson, president and chief executive officer of Harmon Industries, Inc. "Implementing the AATC technology for the first time in large-scale operation is a bold step and is another illustration of our forward thinking and partnering initiative."

Harmon Industries, Inc. a pioneer in wireless communication in the railroad industry, is a leading supplier of signal and train control products to freight and rail transit systems throughout North America and the world. The company is traded in the over-the-counter market and is quoted on the NASDAQ National Market System under the symbol HRMN. For further information, please contact Charles M. Foudree, executive vice-president-finance and chief financial officer, Harmon Industries, Inc., 1300 Jefferson Court, Blue Springs, MO 64015. The telephone number is (816) 229-3345.

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