EXHIBIT 99.1

                                                                    NEWS RELEASE

(HEI, INC. LOGO)
6385 Old Shady Oak Road
Eden Prairie, Minnesota 55344 USA
952-443-2500

CONTACTS:                                                  FOR IMMEDIATE RELEASE
         Mack Traynor III, CEO and President
         Steve E. Tondera, CFO

                 HEI, INC. BOARD APPOINTS LEISZ AS CHAIRMAN AND
                          TRAYNOR AS CEO AND PRESIDENT

Minneapolis, MN - March 19, 2003 - HEI, Inc. (Nasdaq: HEII) today announced that
effective today Dennis J. Leisz has been appointed as Chairman of the Board and
Mack Traynor III has been appointed as Chief Executive Officer and President.
Mr. Leisz and Mr. Traynor replace Anthony Fant, who resigned from the positions
of Chairman of the Board, Chief Executive Officer and President. Mr. Fant
remains a member of the Board.

Mr. Leisz has served as a director of the Company since 2002. Mr. Leisz is
currently the President, Chief Executive Officer and Treasurer of Wavecrest
Corporation, a corporation that manufactures test and measurement instruments
for the design and production test of semi-conductor, optical components and
systems.

Mr. Traynor has served as a director of the Company since 1998. Mr. Traynor has
served as President and Chief Executive Officer for a number of companies,
including Manitou Investments, an investment and business management firm, and
Supreme Companies, Inc., a landscape and grounds maintenance company.

HEI is seeking a permanent Chief Executive Officer and President. It is
anticipated that Mr. Traynor will serve as Chief Executive Officer and President
until such permanent replacement can be found.

Mr. Traynor commented that "on behalf of the entire Board, I wish Anthony well
in his future endeavors."

ABOUT HEI, INC.:

HEI, Inc. specializes in the 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, wireless and contact smart cards, other RF
applications, and industrial markets through innovative design solutions and by
the application of state-of-the art materials, processes and manufacturing
capabilities.

FORWARD-LOOKING STATEMENTS:

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 future leadership of HEI, 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 recruit and retain leadership, 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.