Exhibit 99.1

               HEI, INC. ANNOUNCES $3.54 Million Equity Financing

MINNEAPOLIS, February 17, 2004 -- HEI, Inc. (Nasdaq: HEII, www.heii.com) today
announced that it has raised $3.54 million in gross proceeds through the sale of
1,180,000 shares of its common stock in a private placement led by ThinkEquity
Partners to a group of institutional and accredited investors.

In connection with the financing, HEI issued 1,180,000 million shares of common
stock as well as five-year warrants to purchase 354,000 shares of common stock
at an exercise price of $3.72 per share. If the warrant holders exercise the
warrants in full the Company would receive an additional approximately $1.3
million in cash proceeds.

"This equity infusion from the group of high quality institutional investors
takes advantage of an attractive opportunity to further strengthen our cash
position and enables us to more aggressively pursue our key corporate
strategies," said Mack V. Traynor, president and chief executive officer of HEI.
"Our objectives over the next 12 months include investment in infrastructure,
and continuation of the efforts to integrate HEI into a single business focused
on serving our target markets with outstanding products, platforms and
services."

      HEI, Inc. designs, develops and manufactures microelectronics, subsystems,
systems, connectivity and software solutions for OEMs engaged in the medical
equipment and medical device, hearing, communications and RFID industries. HEI
provides its customers with a single point of contact that can take an idea from
inception to a fully functional, cost effective and manufacturable product
utilizing innovative design solutions and by the application of state-of-the-art
materials, processes and manufacturing capabilities.

Headquarters & Microelectronics Operations      PO Box 5000, 1495 Steiger Lake
                                                  Lane, Victoria, MN 55386
Advanced Medical Operations                     4801 North 63rd Street,
                                                  Boulder, CO  80301
High Density Interconnect Operations            610 South Rockford Drive,
                                                  Tempe, AZ  85281
RF Identification and Smart Card Operations     1546 Lake Drive West,
                                                  Chanhassen, MN  55317

                           FORWARD LOOKING INFORMATION

Information in this news release, which is not historical, includes
forward-looking statements made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Statements contained in this
press release, including the use of proceeds from the offering; the amount of
additional cash that would be paid upon exercise of the warrants; implementation
of business strategies; and HEI's objectives, are forward looking statements.
All of such forward-looking statements involve risks and uncertainties
including, without limitation, continuing adverse business and market
conditions, the ability of HEI to secure and satisfy customers, the availability
and cost of materials from HEI's suppliers, HEI's ability to satisfy financial
or other obligations or covenants set forth in its banking agreements, adverse
competitive developments, change in or cancellation of customer requirements,
the integration of the Advanced Medical Operations, collection of outstanding
debt, HEI's ability to succeed on the merits and defend against litigation, and
other risks detailed from time to time in HEI's SEC filings. HEI undertakes no
obligation to update these statements to reflect ensuing events or
circumstances, or subsequent actual results.