SOURCE: M-Wave, Inc.

May 04, 2005 14:06 ET

M-Wave Clarifies Prior Press Release on Its Unqualified Auditor's Opinion

WEST CHICAGO, IL -- (MARKET WIRE) -- May 4, 2005 -- M-Wave, Inc. (NASDAQ: MWAV), a provider of supply chain services and a virtual distributor of printed circuit boards, custom electronic components and direct broadcasting satellite parts sourced domestically and from Asia, is repeating a previous press release made April 25, 2005, about the auditor's opinion contained in its Annual Report on Form 10-KSB for 2004 and dispelling any misconceptions stated in the press concerning the meaning of that press release.

Jim Mayer, CEO, commented, "We have learned by various news reports that the previous April 25th announcement of our receipt of the Unqualified Opinion of our current auditors as to our financial statements in our 2004 Annual Report on Form 10-KSB was apparently mistaken to relate negative information. This is inexplicable and entirely incorrect. In our Annual Reports for 2002 and 2003 our prior auditors expressed a qualification that M-Wave would be able to operate as a going concern in the forthcoming year. The 2004 Unqualified Opinion, in effect, removes any negative of M-Wave being a Going Concern and is thus totally good news. In fact, M-Wave in 2004 had its best year since 2001 and the audit opinion clearly does not question M-Wave's future in fiscal 2005. I trust this clarifies the true position of M-Wave."

About M-Wave, Inc.

Established in 1988 and headquartered in the Chicago suburb of West Chicago, M-Wave, Inc. now consists of its Electro-Mechanical Group division (EMG) and its recently acquired M-Wave DBS division. EMG is a value-added service provider of high performance circuit boards and a virtual distributor of custom and engineered electronic components imported on behalf of middle market original equipment manufacturers and contract manufacturers. EMG's products are used in a wide range of telecommunications and industrial electronics products. EMG services customers in a variety of industries spanning warning devices to irrigation equipment and wireless infrastructure in the telecom sector to components found in consumer products. EMG also offers supply chain services and annual forecast financing for its middle market customers including strategic stocking, in-plant stores, third-party logistics, consignments and agency procurement programs both on a domestic and international basis.

The M-Wave DBS division, d/b/a JVI Technologies (JVI), is a virtual manufacturer and global supplier to the Digital Broadcasting Satellite (DBS) industry that includes a growing number of proprietary product lines including the TrunkLine Millennium® commercial SMATV head end gear, JVI L-Band passive splitters and multi-switches, Treadclip plastic fasteners, Signaloc® meters used in DBS installations and the Kompressor® universal RF connector line.

JVI holds patents on the Treadclip products; a patent pending on a quad port ground block and the Kompressor line for the open and closed configurations. Since the inception of DBS in 1991, JVI has been providing quality products to the DBS industry and has responded to its continual technological evolution and has met the specifications required by DIRECTV®, DISH NETWORK®, SKY®, STAR CHOICE®, and other global satellite providers.

The common stock of M-Wave, Inc. trades on the NASDAQ SmallCap market under the symbol MWAV. M-Wave's website is located at www.mwav.com. M-Wave DBS, Inc., d/b/a JVI Technologies, can be found at www.jviparts.com.

The discussion above contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements by their nature involve substantial risks and uncertainties as described by M-Wave's periodic filings with the SEC. Actual results may differ materially depending on a variety of factors, including, but not limited to the following: the achievement of M-Wave's projected operating results, the achievement of efficient volume production and related sales revenue, the ability to integrate acquired companies into M-Wave's existing business, and the ability of M-Wave to identify and successfully pursue other business opportunities. Additional information with respect to the risks and uncertainties faced by M-Wave may be found in, and the prior discussion is qualified in its entirety by, the Risk Factors contained in the company's filings with the Securities and Exchange Commission including M-Wave's Report on Form 10-KSB for the year ended December 31, 2004, its Forms 10-QSB, and other SEC filings.

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