Exhibit 99.1
                                                                        
PRESS RELEASE

                                                                        
MARCH 10, 1997


DATELINE:  Ann Arbor, Michigan, March 10, 1997

BODY:

KMS Industries, Inc. (NASDAQ Symbol:  KMSI) today announced that the United
States Court of Appeals for the Federal Circuit in Case No. 94-593C affirmed
the judgment of the United States Court of Federal Claims, denying the
breach of contract claim by the Company's wholly owned subsidiary, KMS
Fusion, Inc., against the United States Department of Energy.  This decision
is a material adverse development for the Company.

Another case is pending before the United States Court of Claims involving
claims by KMS Fusion, Inc. for reimbursement for costs incurred by KMS
Fusion, Inc. during the years 1987 through 1991 in the performance of
contract R&D for the United States Department of Energy.  The Company
expects to have a result in that matter within the next few months.  Any
judgment in favor of KMS Fusion, Inc. will be subject to a $2 million set-
off in favor of the government and to the payment of fees for legal and
support services.  It is possible that KMS Fusion, Inc. would receive little
or nothing as a result of the impact of these factors.

For further information, contact:  Mr. Terence C. Liddy or Mr. Patrick B.
Long