$1.6 million international wireless PCS order for California Microwave's MRC subsidiary.

SUNNYVALE, Calif.--(BUSINESS WIRE)--May 18, 1995--California Microwave Inc. (Nasdaq National Market: CMIC) announced that its Microwave Radio Corporation subsidiary won an order exceeding $1.6 million for digital microwave radios to provide interconnections for the Orange Personal Communications Services, Ltd. personal and mobile communication system in the United Kingdom.

Customer support services, including environmental testing, are provided at California Microwave's Support Center near London. Since late 1993, MRC has shipped substantial quantities of radios to Orange, the personal communications arm of Hutchison Telecom (UK), which in addition to Orange, provides a broad range of personal communications services in the UK. These include analog cellular, other digital cellular telephone and paging. Hutchison Telecom is owned by Hong Kong-based Hutchison Whampoa (65%), British Aerospace (30%) and Barclays (5%).

Worldwide PCS Market to Reach to $20 Billion by 2002

Markets for personal communications services (PCS) will explode worldwide, to over $19 billion by the year 2002, projects a new study released by Frost & Sullivan. By the end of the decade, it is expected that PCS will achieve mass market status in Europe, with Germany, the United Kingdom and France leading the mass market breakthrough by the year 2000. According to the report, the ultimate goal of global PCS is to provide telecommunications services to individuals regardless of where they are. While developed countries view wireless communications as a convenience, developing countries see it as a means to obtaining basic telephone service. Frost & Sullivan says that more than half the people in the world still have never used a telephone.

Microwave Radios for PCS: Attractive Alternative

California Microwave has shipped more than 11,000 digital radios for the international PCS market to date. Microwave technology is attractive to wireless system operators because radios are quick to install, require very little maintenance and they are available in many different frequencies so they can be tailored to specific requirements. It is estimated that over 50% of the wireless networks in Germany and the UK use microwave radios because it is more economical to buy radios than lease telephone lines. California Microwave estimates that the worldwide PCS market for digital microwave radios will total $2.3 billion by the year 2002.

MRC is a leading international supplier of microwave and millimeter wave radio transmission systems. Many of today's PCS networks are using MRC digital radios to provide cellular interconnections at frequencies ranging from 15GHz to 38GHz. California Microwave, Inc. is a leader in satellite and wireless communications. Founded in 1968, the company operates facilities in seven states and sells into more than 75 countries. California Microwave is the leading US supplier of telecommunications satellite earth stations and microwave radios used in wireless communications. Its strategy calls for significant expansion in the wireless area.

CONTACT: California Microwave Inc.

Stephanie M. Day, 408/720-6229

William Dunk Partners

Deborah Passik, 214/960-9611