Electro-Sensors, Inc. Acquires Wireless Hazard Monitoring Product Line From Harvest Engineering Inc.

 Electro-Sensors, Inc. Acquires Wireless Hazard Monitoring Product Line From
                           Harvest Engineering Inc.

PR Newswire

MINNETONKA, Minn., Feb. 18, 2014

MINNETONKA, Minn., Feb. 18, 2014 /PRNewswire/ --Electro-Sensors, Inc.
(Nasdaq: ELSE) announced today it has acquired the advanced wireless hazard
monitoring product line from Harvest Engineering Inc. ("Harvest").
Electro-Sensors will market and sell the new hazard monitoring products under
its new HazardPRO^TM product line and manufacture and service them at its
Minnetonka, Minnesota facility.

"The creation of the HazardPRO^TM product line will enable us to deliver
best-in-class hazard monitoring systems built upon a field-proven wireless
platform," said David Klenk, President of Electro-Sensors. "This acquisition
complements our existing hazard monitoring sensors and systems and expands our
product line to include the most advanced hazard monitoring systems with a
lower installed cost than traditional wire-based solutions. The combination of
leading hazard monitoring technology, field-proven reliability, true remote
access capabilities, and the lowest overall installed cost make this a
market-leading product offering."

"We're excited that Electro-Sensors will be deploying this technology to
markets where hazard monitoring is of critical importance," said Bruce Meyer,
President of Harvest Engineering. "With more than 45 years of experience
serving these markets, Electro-Sensors has established distribution channels,
technical competency, and customer support capabilities that are essential to
effectively distribute this technology worldwide. Additionally, this
transaction will enable Harvest to focus on developing its core business of
designing new, highly-engineered products for the grain and feed market."

The HazardPRO^TM wireless hazard monitoring  product line  contains a variety
of configurations ideally suited for a wide range of applications, from
single-point monitoring to large, highly-complex, multi-leg installations. In
addition, it has been successfully installed and monitoring industrial
processing facilities with hazardous environments for more than five years.
During this time period, the products have proven to be easy-to-use, extremely
reliable, simple-to-operate, and cost-effective.

Under the agreement, Harvest received $400,000 at closing, and will receive an
additional $400,000 on each of the first and second anniversary of closing.
Additionally, Harvest may earn up to an additional $550,000, contingent upon
the achievement of certain performance measures. The Company believes the
acquisition will be accretive to quarterly GAAP earnings per share beginning
in the second quarter of 2015. 

About Electro-Sensors, Inc.

Electro-Sensors, Inc. designs and manufactures the most rugged and reliable
machine monitoring sensors and hazard monitoring systems for industrial
applications. Since 1968 we have been utilizing leading-edge technology to
continuously improve our products making them easy-to-use and designed to last
for many years of accurate service. Our products improve processes by
safeguarding systems, reducing downtime, and preventing waste. Most of our
standard products ship within two days and have an industry-leading 5-year
warranty. Electro-Sensors is proud to be an ISO9001:2008 quality certified
company committed to providing excellent customer service and technical
support.

Cautionary Statement Regarding Forward Looking Statements

This press release includes statements about possible or anticipated future
financial performance, business activities or plans. These forward-looking
statements may include the words "believes," "expects," "anticipates,"
"intends" or similar expressions. For these forward-looking statements, the
Company claims the protection of the safe harbor for forward−looking
statements contained in federal securities laws. These forward-looking
statements are subject to a number of factors, risks and uncertainties,
including those disclosed in our periodic filings with the SEC, that could
cause actual performance, activities or plans after the date the statements
are made to differ significantly from those indicated in the forward-looking
statements.

In addition, the forward-looking statements in this press release depend upon
our ability to successfully integrate and manufacture the advanced wireless
hazard monitoring product line, sell it under the HazardPRO^TM trade name, and
continue to develop new products using the advanced wireless hazard
technology.

HazardPRO^TM is a trademark of Electro-Sensors, Inc.

SOURCE Electro-Sensors, Inc.

Website: http://www.electro-sensors.com
Contact: David Klenk, +1-952-930-0100
 
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