Harmon Industries Announces Acquisition Of UK-Based Partner

BLUE SPRINGS, Mo. (Monday, July 1, 1996) -- Harmon Industries, Inc., a leading supplier of signal and train control products to freight and transit systems throughout North America and the world, today announced the company's acquisition of Vaughan Systems, headquartered in the United Kingdom.

Vaughan Systems, founded in 1959, was the first software house in the UK, and is a market leader in the manufacture of train describers, passenger information and modular railway control systems. Vaughan successfully competes against major rail companies in the UK, and with the support of Harmon's products and services, the company is in a position to continue its role as a key player in the UK's signal and train control market.

"Our partnership with Vaughan confirms our strategy to expand internationally through market presence and acquisition," said Björn; Olsson, Harmon's president and chief executive officer.

"Their capabilities will allow us to extend our products into the UK, a competitive and expanding market that rewards cost-effectiveness, velocity and customer service, all of which are strengths for Vaughan and Harmon. We are very excited about the opportunities this partnership provides us in the European markets."

"We are very excited at our acquisition by Harmon Industries, the most dynamic and innovative company in the US rail business," said Andrew St. Johnston, managing director of Vaughan Systems. "Harmon's products are leaders in their market, and we look forward to being a partner in introducing their products into the UK, both as stand-alone items and as part of systems."

The company will be known as Vaughan Harmon Systems Ltd., and will continue to operate independently with the company's existing management.

Harmon Industries, Inc., is traded 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.