SOURCE: Herley Industries, Inc.

July 29, 2005 11:06 ET

Herley Receives Contract Awards Totaling $4.5 Million

Herley Subsidiary, Micro Systems, Will Supply Products to New and Legacy Customers

LANCASTER, PA -- (MARKET WIRE) -- July 29, 2005 -- Herley Industries, Inc. (NASDAQ: HRLY) announced today that Micro Systems, a wholly owned subsidiary of Herley located in Ft. Walton Beach, Florida, has been awarded contracts totaling $4.5 million.

--  DSQ-50A Sensor and Telemetry Downlink Airborne Set for the U. S. Navy.
    This contract is a five-year Indefinite Delivery/Indefinite Quantity
    contract with a potential value in excess of $12.2 million.  The first
    delivery order is valued at $1.6 million.
    
--  High Power Low Noise Amplifiers for a Florida customer.  This is a
    development and manufacturing job valued at approximately $700,000.
    
--  Exercise of Option for Lot 11 to supply hardware for a U. S. Air Force
    unmanned airborne vehicle.  The value of this booking is $2.2 million.
    
John M. Kelley, Herley President, stated, "These contracts are very good examples of the type of business that defines Herley and the way we operate. Herley seeks programs where we begin a manufacturing cycle that we believe will become a Defense Department staple. We analyze opportunities in our market segments and select those that we want to pursue. While there is engineering development up-front, once on the program, Herley reaps the benefits of our early involvement with multi-year manufacturing contracts."

Kelley continued, "The exercise of Lot 11 for the U.S. Air Force is our bread and butter business. This is the eleventh annual contract award received by MSI, and we expect the USAF will exercise options for an additional four years."

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 nine locations and approximately over a thousand employees worldwide. Additional information about the company can be found on the Internet at 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. 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, and general economic conditions.

Contact Information

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