Williams Controls, Inc.
News Release                          Contact:  Thomas W. Itin, Chairman and CEO
For Immediate Release                                Telephone:   (248) 851-5651


    WILLIAMS CONTROLS ANNOUNCES PLAN TO SELL AGRICULTURE EQUIPMENT SUBSIDIARY
                         REPORTS FISCAL YEAR END RESULTS
              NET EARNINGS FROM CONTINUING OPERATIONS INCREASED 83%


     Portland,  OR....December  14, 1998....  Williams  Controls,  Inc. (Nasdaq:
WMCO) reported its results for the fourth quarter and full year ended  September
30, 1998 and announced a plan of disposal for its Agriculture Equipment segment,
as  the  Company  continues  to  focus  on  growth  opportunities  in  its  core
transportation and communication business.

         The Company  reported net earnings from  continuing  operations for the
fiscal year ended September 30, 1998 of $4,611,000,  an increase of 83% compared
to $2,515,000  for the year ended  September 30, 1997.  Diluted net earnings per
share from  continuing  operations were $.23 for the fiscal year ended September
30, 1998, an increase of 64% compared to $.14 diluted earnings per share for the
year ended  September 30, 1997 on higher  weighted  diluted shares  outstanding.
Sales from  continuing  operations for the fiscal year ended  September 30, 1998
were $57,646,000 a 24% increase compared to sales from continuing  operations of
$46,671,000 in the twelve months ended September 30, 1997.

         The  Company  benefited  from an  improved  gross  margin of 30% during
fiscal 1998  compared to a gross margin of 27% in the prior year.  The Company's
effective  tax rate  improved to 34% in 1998  compared to 47% in 1997 because of
lower state tax rates and expected state tax refunds from prior years.

         For  the  fourth  quarter,  the  Company  reported  net  earnings  from
continuing operations of $902,000 an increase of 14% compared to net income from
continuing  operations  of  $791,000  in the same  period one year ago.  Diluted
earnings per share from continuing operations were $.04 in the fourth quarter of
1998 and 1997 based on higher weighted average common shares in the 1998 period.
Sales from  continuing  operations in the fourth  quarter were  $14,568,000,  an
increase of 19% compared to sales from  continuing  operations of $12,232,000 in
the same period one year ago.

         The  Company  reported  a net  loss  from  discontinued  operations  of
$4,299,000  and  $4,552,000  in 1998 and 1997  respectively.  The 1998 loss from
discontinued  operations  included a net loss on the disposal of the Agriculture
Equipment  segment of $2,674,000 that includes an estimated net loss on disposal
and  estimated  net losses  until  disposal  of  $1,403,000.  The 1998 loss from
discontinued operations also included a net loss of $1,625,000 on the previously
reported disposal of the Automotive Accessories segment.

         The Company  adopted a plan of disposal for the  Agriculture  Equipment
segment in the fourth quarter of 1998.  Williams  Controls retained the national
investment banking firm of JWGenesis Capital Markets,  LLC as financial advisers
to maximize  the value to the Company of the  disposal in a manner that seeks to
preserve the value of the  operation  as a going  concern for the benefit of the
employees,  customers,  suppliers and future  owners.  JWGenesis' New York-based
corporate  finance operation will be seeking buyers for the unit, which consists
of Hardee, a manufacturer of agricultural and landscape  maintenance  equipment,
Agrotec,  a manufacturer of agriculture and nursery sprayers and Waccamaw Wheel,
a manufacturer  of wheel  products  primarily  used in the  agriculture  market.
JWGenesis  is a  publicly-traded,  full-service  investment  bank and a national
leader in middle market divestitures and financings.

         The additional  loss on the  Automotive  Accessories  segment  resulted
primarily from a fourth quarter  adjustment to the estimated value of non-voting
preferred stock that the Company had received as partial  consideration  for the
sale and from additional estimated retained liabilities related to the sale. The
reduction  in the  estimated  value of the  preferred  stock did not  affect the
rights and preferences of the preferred shares.

         The Company reported net income of $312,000,  or $.00 per diluted share
for the year ended  September 30, 1998 compared to a net loss of $2,037,000,  or
$.12 per  diluted  share in the prior year.  The Company  reported a net loss of
$2,598,000,  or $.15 per diluted share for the quarter ended  September 30, 1998
compared to net income of  $173,000 or $.01 per diluted  share in the prior year
quarter.

                                       3
<PAGE>

         Williams  Controls  Chairman and CEO Thomas W. Itin  stated,  "Over the
past eighteen months, we expended significant financial and management resources
in an attempt  to reach a  profitable  level of  operations  in the  Agriculture
Equipment  segment.  With the  assistance  of managers  from around the Williams
Controls organization,  we recently completed a strategic and operational review
of this business.  Our conclusion was that,  with time and additional  financial
commitments,  we could complete our turnaround  plan and achieve  profitability.
However,  with the  substantial  commitments  we are making to new  product  and
market development in our core  transportation and communication  business,  and
the more immediate  payback that should result in these areas,  management  made
the decision to sell the Agriculture operations in order to strengthen our focus
on transportation and related initiatives."

         Mr. Itin  continued,  "In  addition to serving  our  traditional  truck
market, we continue to make significant  investments in new product  development
focused on the automotive market. Our integrated approach to this market,  which
is many times the size of our traditional markets, is beginning to show results.
We are pleased with the reception  given to our team approach to the  automotive
and light truck market, combining our proven throttle control technology with an
automotive-experienced  management  team  that we have  assembled  over the past
fifteen  months.  We believe there are a number of niche  opportunities  in this
huge market where our  technology can be applied in the near term, and we intend
to actively  pursue them,  while using these advances to further  strengthen our
presence in the heavy truck market."

         Williams  Controls Chief  Financial  Officer Gerard A. Herlihy  stated,
"The  results  from our  continuing  operations  over the last year  continue to
reflect the  strength in our core  transportation  business,  especially  in the
manufacture of controls for the heavy truck and equipment market. We continue to
see widespread  acceptance of Williams'  throttle  control  technologies  in our
traditional  markets,  as we have  maintained  or enhanced  our market  position
throughout  the heavy truck  industry.  Our  automotive  plastics  and  lighting
operation has also had some important  gains in the market,  as it had its first
full quarter of operations from its new state-of-the-art facility in the Detroit
area, and our sensors and communications  business in South Florida made similar
progress during the quarter.  In addition,  this operation has nearly  completed
its QS-9000 quality certification process"

         Mr.  Herlihy  continued,  "We  believe  the  sale  of  the  Agriculture
Equipment  segment  will  have a  number  of  benefits  for  Williams  Controls.
Principally, it will permit the redirection of capital into businesses that have
the best chance for short and long term  returns to our  shareholders.  Williams
Controls is the preeminent  producer of electronic  throttle controls ("ETC") in
the truck markets  because of our strong  engineering  design team, high quality
manufacturing  and  customer  service.  We are  actively  bidding  on our  first
commercial  automotive ETC and are receiving  excellent  feedback about our deep
knowledge of ETC and our creative  engineering  design approach.  The automotive
ETC will involve higher volume  manufacturing  processes in the future which our
new automotive-experienced management team is fully capable of implementing. Our
research  and  development  expenditures  increased  51% in 1998  and we plan to
increase R&D spending further in 1999."

         Williams   Controls  is  a  leading   manufacturer  and  integrator  of
innovative sensors,  controls, and communications systems for the transportation
and communication industries. For more information, you can reach the Company at
www.wmco.com on the World Wide Web.

         Forward-looking statements in this news release, if any, are made under
the safe harbor  provisions of the Private  Securities  Litigation Reform Act of
1995.  Certain  important  factors could cause results to differ materially from
those  anticipated by the statements,  including the impact of changing economic
or  business  conditions,  the  impact  of  competition,   the  availability  of
financing,  the  success of  products  in the  marketplace,  the  success of its
Internet  selling  efforts,  other  factors  inherent in the  industry and other
factors  discussed  from time to time in reports  filed by the company  with the
Securities and Exchange Commission.

                            *************************


                                       4
<PAGE>
                             Williams Controls, Inc.
                      Consolidated Statements of Operations
                (Dollars in thousands, except per share amounts)

<TABLE>
<CAPTION>
<S>                                         <C>             <C>              <C>              <C>
                                             Three months    Three months     Twelve months    Twelve months
                                             ended 9/30/98   ended 9/30/97    ended 9/30/98    ended 9/30/97
                                             -------------   -------------    -------------    -------------

Net sales ....................................   $14,568         $12,232          $57,646         $46,671

Cost of sales ................................    10,707           8,437           40,129          33,974

Gross margin .................................     3,861           3,795           17,517          12,697

Operating expenses ...........................     1,911           1,738            8,526           6,305

Earnings before interest and taxes ...........     1,950           2,057            8,991           6,392

Interest and other expenses ..................       742             444            2,014           1,635

Earnings before income taxes .................     1,208           1,613            6,977           4,757

Income tax expense ...........................       306             822            2,366           2,242

Net earnings from continuing operations ......       902             791            4,611           2,515

Net loss from discontinued                     
operations - Agriculture Equipment ...........   (2,035)           (618)          (2,674)         (1,380)

Net loss from discontinued                      
operations - Automotive Accessories ..........   (1,465)               -          (1,625)         (3,172)

Net earnings (loss)...........................   (2,598)             173              312         (2,037)

Preferred dividends ..........................       150               -              270               -

Net earnings (loss) allocable to 
common shareholders........................... $ (2,748)          $  173            $  42      $  (2,037)


Earnings per share information:
------------------------------

Earnings per share from continuing
operations - basic ..........................     $.04             $.04             $.24            $.14

Loss per share from discontinued                  
operations - basic ..........................     (.19)            (.03)            (.24)           (.26)

Net earnings (loss) per share - basic .......     (.15)             .01              .00            (.12)

Earnings per share from continuing                  
operations - diluted ........................      .04              .04              .23             .14

Loss per share from discontinued                 
operations - diluted ........................     (.19)            (.03)            (.23)           (.26)

Net earnings (loss) per share - diluted .....    $(.15)            $.01             $.00           $(.12)

Weighted common shares outstanding - basic ..  18,124,037        17,642,040       17,922,558     17,656,900

Weighted common shares outstanding - diluted   21,287,294        18,354,908       19,808,460     18,001,799


  The earnings per share computation for 1997 has been restated to reflect the
                             adoption of SFAS 128.

</TABLE>

                                       5
<PAGE>
                                         Williams Controls, Inc.
                                     Consolidated Balance Sheets
                                       (Dollars in thousands)

                                                  Sept. 30,     Sept. 30,
                                                    1998          1997
                                                  --------      --------
                         Assets
                         ------
Current Assets:

Cash ...........................................   $ 1,281      $   700
 
Accounts receivable, net .......................    11,765        6,726

Inventories ....................................    10,693       11,186

Deferred taxes and other .......................     2,231        1,539

Net assets held for disposition ................     5,117        5,005

    Total current assets .......................    31,087       25,156

Property, plant and equipment, net .............    20,013       14,533

Investment in and note receivable from affiliate     6,140        4,204

Note receivable ................................     3,200         --

Net assets held for disposition ................     1,847        3,112

Other assets ...................................     4,072        1,308

Total assets ...................................   $66,359      $48,313

          Liabilities and Stockholders' Equity
          ------------------------------------

Current Liabilities:

Accounts payable ...........................       $ 4,771      $ 4,619

Accrued expenses ...........................         3,399        2,482

Current portion of long-term debt and leases         1,181        1,427

Estimated loss on disposal .................         2,550          500

    Total current liabilities ..............        11,901        9,028

Other liabilities ..........................         2,201        1,215

Long-term debt and capital leases ..........        27,846       21,235


Stockholders' Equity:

Preferred stock ............................           1           --

Common stock ...............................         183            179

Additional paid-in capital .................      17,917          9,822

Retained earnings ..........................       7,444          7,402

Unearned ESOP shares .......................        (73)          (191)

Treasury stock (130,200 shares) ............      (377)           (377)

Note Receivable ............................       (500)           --

Pension liability adjustment ...............       (184)           --

    Total stockholders' equity .............      24,411         16,835

Total liabilities and stockholders' equity      $ 66,359       $ 48,313

The  consolidated  balance  sheet as of September  30, 1997 has been restated to
reflect the Agriculture Equipment segment as a discontinued operation.