Harmon Industries Completes Private Debt Placement

BLUE SPRINGS, Mo. (February 4, 1997 ) -- Harmon Industries Inc., a leading supplier of signal and train control equipment for railroad and rail transit systems throughout North America and the world, today announced it completed a $15 million private placement of senior unsecured notes with CIGNA Investments, Inc.

The notes, due in 2007, have a ten-year maturity, and an average life of seven years. The notes were priced to yield 6.87 percent. Harmon will use the proceeds of the placement to provide working capital and to finance acquisition plans.

"We are pleased to have a respected financial partner such as CIGNA as we execute our long-term growth strategy," said Björn E. Olsson, president and chief executive officer of Harmon Industries. "The current interest rate environment provides us with the opportunity to add to our existing credit facilities, and the addition of this $15 million in long-term debt, at a fixed rate, provides an attractive addition to our capital structure."

Harmon Industries, Inc. 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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