AM Announces Re-Organization.

QUAKERTOWN, Pa.--(BUSINESS WIRE)--April 6, 1998--AM Communications, Inc. (AMCM) Monday announced several organizational changes which have been implemented to address the present business environment and better position the Company for the future.

The organization changes included a staff reduction of 16 individuals, primarily related to the manufacturing organization and a restructuring of the sales and marketing organization.

Commenting on the actions, Keith Schneck, president and CEO said, "we made a lot of progress during our fiscal 1998 which ended March 27, 1998 with revenues expected to grow almost 70% over the prior year. (Final year end results will be released in May upon completion of the annual audit.)

"However, we have experienced a decline in bookings and backlog over the past several months which required a re-assessment of staffing levels. The present business levels have been impacted by several events including the stoppage of a major international program and a slow down in closing new opportunities due to customer economic situations and technical evaluations of the AM products.

"We have also restructured our sales and marketing organization with Bob Vogel being named senior vice president, Sales and Marketing," continued Schneck.

"Bob has been with AM for the past two years as VP of Strategic Development. David DeLane, VP, Sales and Marketing, is no longer with the Company. Joe Rocci has assumed the role of VP, Marketing with responsibility for all technical marketing and product strategy. Rounding out the organization changes are the addition of two new area sales managers located in Florida and California. We believe this new organization structure will enable AM to better serve our MSO and OEM customers."

"The impact of the staff reductions and the drop in business activity will result in AM reporting a loss from operations at least through the June 1998 quarter. While we are presently in a challenging business situation, our goal is to aggressively pursue customer opportunities and re-establish our sales growth and profitability," concluded Schneck.

AM Communications, Inc., founded in 1974, is a market leader in the design, development, and integration of network monitoring systems for the broadband telecommunications industry.

AM provides system solutions through its OEM partnerships with key industry leaders (i.e. -- ADC, Next Level Systems, Philips Broadband Networks, and Scientific-Atlanta) and directly to end user customers. Additional information on AM's business activities and technological solutions can be found on its Web Site (http://www.amcomm.com).

This news release discusses primarily historical information. Statements included in this release, to the extent they are forward looking, involve a number of risks and uncertainties such as competitive factors, technological developments and market demand.

Further information on potential factors that could affect the Company's financial results can be found in the Company's most recent Form 10-QSB.

CONTACT: AM Communications Inc.

Keith D. Schneck, 215/538-8704, fax: [phone]