Exhibit 99.1

NEMATRON NEWS RELEASE
FOR IMMEDIATE RELEASE


              NEMATRON ANNOUNCES POTENTIAL REPORTING ADJUSTMENTS

ANN ARBOR, MI, April 28, 1998, (NASDAQ:NEMA):  Nematron Corporation today
announced that it has identified potential material adjustments to the
Company's financial statements for the years ended September 30, 1996 and
1997 relating to one significant contract. 

"The potential adjustments arise out of the accounting treatment of one
major contract," said Frank G. Logan, III, Chairman and CEO.  "The timing
and amount of the potential adjustment is not yet certain, however, since
this issue is limited to the accounting for one contract, we are comfortable
that the adjustment should not exceed $1.5 million in the aggregate.  The
maximum amount in question totals less than 4% of revenue for the time frame
involved and if there are no offsets to the maximum amount, the net effect
of adjustments would be less than a 15% increase in the reported losses
during the last two fiscal years.  Additionally, we feel that there may be
other favorable adjustments that may partially offset this amount."

Logan also said that, as a result of the potential adjustments, KPMG Peat
Marwick LLP has notified the Company that its auditors' reports on the
Company's consolidated financial statements as of September 30, 1997, and
September 30, 1996, and for each of the two years then ended should no
longer be relied upon.

Nematron is already in active discussions with several major auditing firms
to select new independent auditors and expects to announce its selection
soon.  The selected firm will also assist the Company in determining the
appropriate accounting treatment with respect to this contract.  KPMG Peat
Marwick LLP is resigning as independent auditors for the Company.

The discussion in this news release includes forward-looking statements
based on current management expectations, including the timing and amount of
the potential adjustments to the Company's financial statements and the
percentage by which the Company's reported losses for the past two fiscal
years could increase.  Factors that could cause the adjustments and
percentage to differ from the estimates include the revenues attributable to
the contract, the time periods during which such revenues accrued and the
availability of offsetting adjustments or any additional factors described
in the Company's reports filed with the Securities and Exchange Commission.

Nematron designs and manufactures PC-based industrial automation products
that include software for direct machine control, process visualization and
data acquisition.  In addition, the Company produces related hardware
products that leverage or support its software.  Nematron products cover a
broad spectrum from low-end operator interface to Windows NT control
software, including OpenControl', Paragon', PowerVIEW', AutoNet' and
FloPro'.  For additional information about Nematron, visit Nematron's web
site at http://www.nematron.com.


For details, contact:

Frank G. Logan, III
Chairman and CEO
Nematron Corporation 
Phone:  (734) 214-2078