Exhibit 99.1

FOR RELEASE: Immediately

Contact:
Richard K. Arter          Investor Relations         941-362-1200
Clyde G. Nixon            President                  941-362-1200

        SUN HYDRAULICS TO SUPPLY CARTRIDGE VALVES TO MANNESMANN REXROTH
          MANNESMANN REXROTH TO MANUFACTURE PRODUCTS TO FIT SUN CAVITY

SARASOTA, FLA, April 8, 1999 - Sun Hydraulics Corporation (NASDAQ: SNHY) today
announced that it will sell selected screw-in cartridge valve products to
Mannesmann Rexroth, with headquarters in Lohr, Germany, for incorporation into
its fluid power systems. Concurrently, Rexroth announced that it will use the
family of Sun cavities for its newly developed solenoid switching and
proportional screw-in cartridge valves.

Rexroth, widely regarded as a world leader in the manufacture of high
performance hydraulic components and systems, will introduce its new cartridge
valve program, which will be interchangeable and directly competitive with Sun,
at the Hannover Fair, April 19 - 25, 1999, in Hannover, Germany.

Rexroth's acceptance of the Sun Hydraulics family of screw-in cartridge
cavities and the provision of an alternate source for these cartridges is seen
as a positive influence in the marketplace. In this regard, Rexroth recognizes
that the independence of Sun Hydraulics and Rexroth will positively affect
market acceptance of cartridges that fit in Sun cavities by providing OEMs with
alternate suppliers.

"The decision by Rexroth to use the Sun Hydraulics family of cavities for its
new products is due to technical advantages of the Sun cavity compared to
current ISO standard and de facto industry standard cavities," said Bob Koski,
Chairman of Sun Hydraulics. "This decision and the possibility that Rexroth may
manufacture additional cartridge valves to fit Sun's cavities are seen as
having long-term strategic advantages. Rexroth's new solenoid cartridges will
be directly competitive with our solenoid cartridge valves, which we will also
introduce at the Hannover Fair. We believe the direct competition between
Rexroth and Sun will help accelerate the acceptance of these products in the
world market."

"We have encouraged Rexroth to incorporate our screw-in cartridge valves into
its systems solutions," said Sun Hydraulics President Clyde Nixon. "Rexroth has
a comprehensive international systems and component distribution network and
participates in many markets where Sun currently has limited penetration.
Rexroth and Sun will continue to expand the market for screw-in cartridge
valves, and, over the course of the next few months, will further explore
cooperative efforts on selected programs including non-exclusive manufacturing
license agreements.

"While Sun is pleased with the long-term implications of this association, we
do not anticipate it will have a material impact on short-term revenues or
profits," Nixon continued. "At the present time, our orders continue at fourth
quarter levels. First quarter financial results 




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should be in line with, or slightly above, analysts' forecasts, reflecting
strong shipments resulting from a further reduction in our backlog."

Sun Hydraulics Corporation, with manufacturing and distribution facilities in
Sarasota and Manatee County, Florida, Coventry, England, Erkelenz, Germany and
Incheon, Korea, is a leading designer and manufacturer of high-performance
screw-in hydraulic cartridge valves and manifolds for worldwide mobile and
industrial machinery.

FORWARD-LOOKING INFORMATION

         Certain oral statements made by management from time to time and
certain statements contained herein that are not historical facts are
"forward-looking statements" within the meaning of Section 21E of the
Securities Exchange Act of 1934 and, because such statements involve risks and
uncertainties, actual results may differ materially from those expressed or
implied by such forward-looking statements. Forward-looking statements,
including those in Management's Discussion and Analysis of Financial Condition
and Results of Operations are statements regarding the intent, belief or
current expectations, estimates or projections of the Company, its Directors or
its Officers about the Company and the industry in which it operates, and
assumptions made by management, and include among other items, (i) the
Company's strategies regarding growth, including its intention to develop new
products; (ii) the Company's financing plans; (iii) trends affecting the
Company's financial condition or results of operations; (iv) the Company's
ability to continue to control costs and to meet its liquidity and other
financing needs; (v) the declaration and payment of dividends; (vi) the
Company's Year 2000 readiness plans and costs; and (vii) the Company's ability
to respond to changes in customer demand domestically and internationally,
including as a result of standardization. Although the Company believes that
its expectations are based on reasonable assumptions, it can give no assurance
that the anticipated results will occur.

         Important factors that could cause the actual results to differ
materially from those in the forward-looking statements include, among other
items, (i) the economic cyclicality of the capital goods industry in general
and the hydraulic valve and manifold industry in particular, which directly
affect customer orders, lead times and sales volume; (ii) conditions in the
capital markets, including the interest rate environment and the availability
of capital; (iii) changes in the competitive marketplace that could affect the
Company's revenue and/or cost bases, such as increased competition, lack of
qualified engineering, marketing, management or other personnel, and increased
labor and raw materials costs; (iv) changes in technology or customer
requirements, such as standardization of the cavity into which screw-in
cartridge valves must fit, which could render the Company's products or
technologies noncompetitive or obsolete; (v) new product introductions, product
sales mix and the geographic mix of sales nationally and internationally; (vi)
the Company's ability timely to become Year 2000 ready, including the Company's
ability to identify all critical systems that will be impacted by the Year
2000, the Company's ability, in a cost-efficient manner, to correct, upgrade or
replace such systems, and the Year 2000 readiness of third parties with which
the Company has material relationships; and (vii) changes relating to the
Company's international sales, including changes in regulatory requirements or
tariffs, trade or currency restrictions, fluctuations in exchange rates, and
tax and collection issues. Further information relating to factors that could
cause actual results to differ from those anticipated is included but not
limited to information under the headings "Risk Factors" in the Form S-1
Registration Statement and Prospectus for the Company's initial public
offering, and "Business" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations" in the Company's Form 10-K for the year
ended December 31, 1998. The Company disclaims any intention or obligation to
update or revise forward-looking statements, whether as a result of new
information, future events or otherwise.




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