Herley Receives $7.5 Million Contract Award

Herley to Supply GPS Command and Control Systems for UAV's

LANCASTER, Pa.--(BUSINESS WIRE)--October 1, 2001--Herley Industries, Inc. (Nasdaq:HRLY - news) announced today that it has received a $7.5 million contract from the U.S. Army.

Herley will supply its MAGIC2 Systems (Multiple Aircraft Integrated GPS Command and Control) to an international customer through the U.S. Governments Foreign Military Sales (FMS) Program. Additional follow-on business related to this contract is anticipated.

Herley's MAGIC2 system is GPS-based state-of-the art technology that provides long-range control of unmanned airplane vehicles (UAV's). A single MAGIC2 control station can simultaneously control up to four UAV's. Additionally, MAGIC's Over-the-Horizon (OTH) capabilities enable real-time commands to be sent distances of up to 400 nautical miles.

Howard M. Eckstein, President of Herley Microwave Systems said, ``We are pleased to receive this contract from the U.S. Army. This award reflects the on-going growth and interest in GPS Command and Control Technology and strengthens Herley's position as a market leader with our MAGIC2 System. We continue to be the preferred choice of command and control technology by countries worldwide.''

Herley Industries, Inc. is a leader in the design, development and manufacture of microwave technology solutions for the defense/aerospace, medical and commercial communication industries. Based in Lancaster, PA, Herley has eight manufacturing facilities and approximately 650 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.

Source: Herley Industries, Inc.