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Measurement Specialties Announces Acquisition of Encoder Devices, a Manufacturer of Rotational Sensors FAIRFIELD, N.J., July 19 /PRNewswire-FirstCall/ -- Measurement Specialties, Inc. (AMEX:MSS), a designer and manufacturer of sensors and sensor-based consumer products, announced today it has acquired the assets of Encoder Devices LLC for $4.4 million ($4 million cash at close plus a deferred payment of $0.4 million). The transaction is expected to close today. "We are very excited about the growth prospects for Encoder Devices," commented Frank Guidone, Company CEO. "Encoder Devices is currently commercializing some exciting technology, and has an anchor customer in the gas pump market. On a run-rate basis, we anticipate Encoder Devices to contribute approximately $2 million in revenue, and be cash flow neutral. However, given the current and pending customers/applications, we anticipate sales to grow rapidly, and for the group to materially contribute to MSI's top and bottom line." Encoder Devices (http://www.encoderdevices.com/), based in Plainfield, IL, is a designer/manufacturer of rotational sensors (encoders) utilizing magnetic encoding technology. Magnetic encoding is an emerging technology that has many cost and performance advantages over traditional optical encoders. Encoder Devices has secured an anchor program in the fuel pump market with Gilbarco, and has several new opportunities in development. Target markets include fuel pumps, medical syringe pumps, flow meters, military and motors (through shaft), among others. Mr. Guidone added, "Encoder Devices has capitalized on advances in magnetoresistive technology and specializes in developing low cost, precise, custom sensors for various OEM applications. Combined with our low-cost manufacturing capability and broad market coverage, we believe the post-close combination is quite powerful. We will cover the transaction in more detail in the upcoming quarterly call." Rick Carlson, President Encoder Devices, commented, "We are excited about becoming a part of MSI. The financial strength, technical resources and complementary markets of MSI will allow Encoder Devices to rapidly expand its products and services creating greater value for our customers and shareholders." 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 non-recurring expenses, and resolution of pending litigation. Forward-looking statements may be identified by such words or phrases "should," "intends," "expects," "will," "continue," "anticipate," "estimated," "projected," "may," "we believe," "future prospects," or similar expressions. The forward-looking statements above involve a number of risks and uncertainties. Factors that might cause actual results to differ include, but are not limited to, success of any reorganization; ability to raise additional funds; 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 integrating acquired businesses; changes in product mix, costs and yields, fluctuations in foreign currency exchange rates; uncertainties related to doing business in Hong Kong and China; and the risk factors listed from time to time in the Company's SEC reports. The Company from time-to-time considers acquiring or disposing of business or product lines. Forward-looking statements do not include the impact of acquisitions or dispositions of assets, which could affect results in the near term. Actual results may differ materially. The Company assumes no obligation to update the information in this issue. Contact: Measurement Specialties, Inc. Frank Guidone, CEO (973) 808-3020 Boutcher & Boutcher Investor Relations Aimee Boutcher (973) 239-2878 DATASOURCE: Measurement Specialties, Inc. CONTACT: Frank Guidone, CEO of Measurement Specialties, Inc., +1-973-808-3020; or Aimee Boutcher of Boutcher & Boutcher Investor Relations, +1-973-239-2878, for Measurement Specialties, Inc. Web site: http://www.msiusa.com/ http://www.encoderdevices.com/

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