Measurement Specialties Investigated by the Securities and Exchange Commission

Jun 18, 2002, 01:00 ET from Measurement Specialties

    FAIRFIELD, N.J., June 18 /PRNewswire-FirstCall/ --
 Measurement Specialties, Inc. (Amex:   MSS) today announced that the Securities
 and Exchange Commission (the "SEC") has commenced a formal investigation
 relating to the matters reported in the Company's quarterly report on Form
 10-Q for the quarter ended December 31, 2001. The Company, at its own
 initiative, contacted the staff of the SEC after discovering that its Chief
 Financial Officer (the "CFO") had failed to accurately and timely inform
 senior management, the Board and the Company's auditors of a covenant default
 under its credit agreement and the lenders' refusal to waive that default.
 Since February 2002, the Company and a Special Committee formed by its Board
 of Directors have been cooperating with the staff of the SEC.
     Joseph R. Mallon Jr., Chairman and Chief Executive Officer, stated
 "Measurement Specialties is committed to working with the staff of the SEC
 regarding all inquiries into the Company's and management's activities.  The
 formal investigation provides us with the opportunity to address fully any
 concerns that the SEC might have.  As I have previously stated, Measurement
 Specialties is fully determined to return to and add to our years of rapid,
 successful growth. We remain focused on the business of the Company and look
 forward to the completion of the SEC's formal investigation."
     Measurement Specialties cannot predict at this time whether the SEC will
 pursue an enforcement action against the Company or any of its officers and
     Measurement Specialties is a designer and manufacturer of sensors, and
 sensor-based consumer products.  Measurement Specialties produces a wide
 variety of sensors that use advanced technologies to measure precise ranges of
 physical characteristics, including pressure, motion, force, displacement,
 angle, flow, and distance.  Measurement Specialties uses multiple advanced
 technologies, including piezoresistive, application specific integrated
 circuits (ASICs), micro-electromechanical systems (MEMS), piezopolymers, and
 strain gages to allow their sensors to operate precisely and cost effectively.
     This release includes forward-looking statements within the meaning of
 Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
 Securities and Exchange Act of 1934, as amended, including but not limited to,
 statements regarding future growth and the outcome of the SEC investigation.
 Forward-looking statements may be identified by such words or phases as "will
 likely result," "we are fully determined to return," "are expected to," "will
 continue," "is anticipated," "estimated," "projected," "may," or similar
 expressions. The forward-looking statements above involve a number of risks
 and uncertainties.  Factors that might cause our results and future
 performance to differ materially include: conditions in the general economy
 and in the markets served by the Company; competitive factors, such as price
 pressures and the potential emergence of rival technologies; interruptions of
 suppliers' operations affecting availability of component materials at
 reasonable prices; timely development and market acceptance, and warranty
 performance of new products; success in identifying, financing and integrating
 acquisition candidates; changes in product mix, costs and yields, fluctuations
 in foreign currency exchange rates; uncertainties related to doing business in
 Hong Kong and China; the possible de-listing of our common stock from the
 American Stock Exchange; the numerous class action lawsuits filed against us;
 our ability to raise additional funds; our lenders' continued forbearance from
 the exercise of the rights and remedies available to them as a result of our
 defaults under our credit agreement; and the risk factors listed from time to
 time in the Company's SEC reports. The Company is involved in an active
 reorganization program. The Company assumes no obligation to update the
 information in this release.
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