EXHIBIT 99.1

HEI ACQUIRES CROSS TECHNOLOGY, INC.-EXPANDS RF WIRELESS BUSINESS

     MINNEAPOLIS, February 28, 2000 - HEI, Inc. (Nasdaq: HEII)
(http://www.heii.com), a leading global supplier of ultra-miniature
microelectronic products for hearing, communications, medical and industrial
applications, and Cross Technology, Inc., a leader in the manufacturing and
marketing of wireless Smart Cards and other ultra-miniature radio frequency (RE)
applications, have reached an agreement for the acquisition of Cross Technology,
Inc. by HEI, Inc.

     Under the terms of the agreement, six hundred thousand shares of HEI common
stock will be exchanged for all of the outstanding capital stock of Cross,
subject to the completion of due diligence and customary closing conditions.
Based on Friday's closing price of $10.625, the transaction is valued at
approximately $6,375,000.  The parties intend for the merger to qualify as a
tax-free reorganization and will account for the transaction as a pooling of
interests.

     HEI expects this acquisition to be completed in its current quarter and
accretive to its earnings for this fiscal year.  Merger expenses, together with
expenses incurred to implement our SAP enterprise resource planning system, will
result in a second quarter earnings loss greater than previously expected.

     HEI's proposed acquisition of Cross Technology is a significant step in its
expansion into RF wireless applications.  The Smart Card market is expected to
grow at rates approaching 30% annually.  The Cross acquisition gives HEI a
strong market position from which it will apply its extensive expertise in
ultra-miniature packaging and RE technology.  This combination will leverage
HEI's RF wireless design and engineering expertise into immediate revenue and
new opportunities for growth.

     Upon completion of the transaction, HEI will expand its Board by one seat
and will name Leonard Hadden, Cross' President, to fill that seat for the
remainder of its term.  Mr. Hadden is a Minnesota resident and brings 35 years
experience in electronics design and manufacturing to the Company.

     "This merger helps achieve our strategic goals for market and customer
diversity, profitable growth, and technology expansion.  We strengthen HEI in
the RF wireless market by diversifying into the fast-growing RF Smart Card
market segment," said Anthony Fant, Chairman and Chief Executive Officer, HEI,
Inc. "We anticipate our combined revenue growth rate to be over 30% for fiscal
year 2000, as compared to our combined revenue in fiscal year 1999," he added.

     "The growth of the markets served by Cross, and the changing needs of our
customers, will be better met with the combined engineering, marketing and
administrative strength of our companies.  The owners of Cross, Glen Zirbes,
Mart Diana and I, look forward to working with HEI to insure our combined
successful future," said Leonard Hadden, President, Cross Technology, Inc.


     "This acquisition will allow us to leverage our substantial investments of
the past two years.  First, our investment in RE wireless design expertise will
immediately elevate Cross to a leading industry position technologically.
Second, our investment in a high quality, low cost manufacturing facility in

     Mexico will improve our cost competitiveness in all of our markets,
including RF Smart Cards.  Third, we will leverage our investments in
infrastructure, such as our new ERP system, communications and e-commerce
capabilities, and quality processes and procedures to improve the
competitiveness of the combined entity," said Don Reynolds, President and Chief
Operating Officer, HEI, Inc.

     HEI, Inc. specializes in the custom design and manufacture of high
performance, ultra-miniature microelectronic devices and high-technology
products incorporating those devices.  HEI contributes to its customers'
competitiveness in the hearing, medical, communications and industrial markets
through innovative design solutions and by the application of state-of-the-art
materials, processes and manufacturing capabilities.

          World Headquarters and Microelectronics Division
          P.O. Box 5000, 1495 Steiger Lake Lane, Victoria, MN 55386

          Mexico Division, Customer Service Center
          1 Offshore International, 777 East MacArthur Circle, Tucson, AZ 85714

          High Density Interconnect Division
          610 South Rockford Drive, Tempe, AZ 85281

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 regarding the acquisition of Cross Technology and the impact of
the acquisition on HEI, the future sales of Cross and HEI products, the markets
for Smart Cards and other Cross products, the growth opportunities in such
markets and the estimated combined revenue growth rates are forward-looking
statements.  All of such forward-looking statements involve risks and
uncertainties including, without limitation, adverse business or market
conditions, the ability of HEI to secure and satisfy customers, the availability
and cost of materials from HEI's suppliers, adverse competitive developments,
change in or cancellation of customer requirements, and other risks detailed
from time to time in HEI's SEC filings.

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