Herley Announces $1.2 Million Contract Award from the U.S. Air Force

LANCASTER, Pa., March 14 /PRNewswire-FirstCall/ -- Herley Industries, Inc. (Nasdaq: HRLY) announced the receipt of a contract for approximately $1.2 million from Hill Air Force Base to provide next-generation low noise assemblies ("LNA") for the U.S. and international Air Force F-16 APG-68 radar systems. As the receiver front end, the LNA receives incoming signals, then down converts these signals for processing.

Myron Levy, Herley's Chairman and CEO, commented, "This is the first contract for hardware production against a $19.7 million ID/IQ contract awarded to Herley Lancaster in 2004 by Hill Air Force Base for development and production of LNAs for the U.S. and international Air Force F-16 APG-68 radar system. The F-16 represents a very large percentage of the U.S. Air Force's total fighter force and is in use by 19 countries worldwide. Herley has provided microwave components for the F-16 program for many years; and now that these next generation LNAs are fully qualified, we can expect to receive significant future orders for LNAs for the APG-68 radar system."

Herley Industries, Inc. is a leader in the design, development and manufacture of microwave technology solutions for the defense, aerospace and medical industries worldwide. Based in Lancaster, PA, Herley has eight manufacturing locations and approximately 985 employees. Additional information about the company can be found on the Internet at http://www.herley.com

    For information at Herley contact:
    Peg Guzzetti                                    Tel:  (717) 735-8117
    Investor Relations                              http://www.herley.com

Safe Harbor Statement - Except for the historical information contained herein, this release may contain forward-looking statements. Such statements are inherently subject to risks and uncertainties. When used in this report, words such as "anticipated," "believes," "could," "estimates," "expects," "may," "plans," "potential" and "intends" and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the belief of the Company's management, as well as assumptions made by and information currently available to the Company's management. The Company's results could differ materially based on various factors, including, but not limited to, cancellation or deferral of customer orders, difficulties in the timely development of new products, difficulties in manufacturing, increased competitive pressures, the effects of the indictment of the Company and general economic conditions. The Company undertakes no obligation to update forward-looking statements as a result of future events or developments.