NEWS RELEASE
Contact:  Roger E. Brooks
          Sharon Binette
          (207) 283-0156

May 21, 1998

INTELLIGENT CONTROLS SETTLES LITIGATION

SACO, Maine, May 21, 1998 - Intelligent Controls, Inc. (INCON, Amex symbol 
ITC) announced today the settlement of litigation filed by a former executive 
in 1996.

Following termination of his employment in June 1996, John Knight filed suit 
alleging that the Company owed him $287,100 in unpaid bonus payments over a 
six and a half year period under his 1986 Employment Agreement, plus $574,200 
in punitive damages.  Knight had also challenged the Company's refusal to 
allow his post-termination exercise of certain stock options for 248,240 
shares.  The Company had denied the allegations and asserted certain 
counterclaims against Knight.

The parties agreed to dismiss the lawsuit in return for a $40,000 payment by 
the Company to Knight, plus an additional payment equivalent to a repurchase 
of the 248,240 shares from him at $3.25 per share, minus the aggregate 
exercise price for his options.  The $3.25 per share price is the same price 
the Company offered to other shareholders in its recently completed tender 
offer.  As part of the terms of settlement, the Company has acknowledged that 
Knight validly exercised certain of his stock options.

Said INCON's newly elected President and CEO, Roger Brooks:  "I am pleased 
that this litigation has been resolved after so long.  The payment to Mr. 
Knight is essentially equivalent to $40,000 over the value of the shares he 
has surrendered to the Company.  Due to the nature of the transaction, we 
expect about a $470,000 one-time charge to earnings in the second quarter, 
after giving effect to the resulting tax deduction.  The settlement should 
have no effect on future periods, other than to avoid ongoing litigation costs 
and to free up some management time for more productive activities."

Intelligent Controls, Inc., based in Saco, Maine, is a leading supplier of 
automatic tank gauging systems and line leak detection equipment for the 
petroleum industry as well as general predictive maintenance instrumentation 
for the power utility market and other industrial applications.

Additional information about Intelligent Controls, Inc. can be found on the 
Internet at www.intelcon.com.