AM Communications' Chairman Announces Diversification Strategy Annual Shareholders' Meeting Update.

Business Editors

QUAKERTOWN, Pa.--(BUSINESS WIRE)--Nov. 14, 2000

AM Communications, Inc. (OTC:AMCM) has announced a bold diversification initiative designed to transform the company into one of the world's leading supplier of solutions that assure the integrity of broadband networks.

At the company's November 10th Annual Shareholders' meeting, Mr. Jay Hassan, chairman of AM Communications, announced the formation of two new strategic business units intended to leverage the company's strengths, allow it to participate in a significantly larger market and aggressively grow its revenue base.

According to Mr. Hassan, "Broadband cable operators want to transform themselves into competitive providers of data and voice services. At the same time, telco operators want to transform themselves into providers of data and video services. The telcos are well known for the reliability of their networks, but they are bandwidth limited. On the other hand, the cable operators have a huge bandwidth advantage, but they need better reliability to compete with the telcos."

AM's diversification plan is based on three strategic business units that provide reliability solutions over the whole life cycle of the network.

The newly formed AM Broadband Services group will offer design, installation, certification, and maintenance services at network inception. This business unit will be managed by Mr. Mac Qurashi, cable pioneer and founder of AM Communications, and expects to secure business commitments from several large network operators. AM believes that entering the network services business is key to its goal of providing end-to-end network reliability solutions and is a natural extension of the company's core competencies.

The existing AM Broadband Products group intends to continue to expand its family of hardware and software products that help to assure network performance through continual monitoring.

Finally, the new AM Systems Integration Services group will help network enterprises to integrate their `back-office' software management systems in order to optimize operations efficiency and improve subscriber satisfaction. This business unit will draw on NeST's 400-person CMM Level V software organization, which has offices in the US, UK, and Japan. One nationwide broadband cable operator has already contracted with AM for AM's Systems Integration Services, and discussions are underway with several others.

Mr. Hassan went on to say, "Reliability and Quality of Service (QOS) are the biggest challenges facing broadband cable operators as they enter into competition with the telcos. By leveraging our experience and knowledge of the industry along with the world-class software assets of our NeST partner company, AM will be positioned to tap into an estimated $15 billion dollar worldwide market for network assurance products and services."

In a related announcement made at the Annual Shareholders' Meeting, Mr. Hassan indicated that while the Company's backlog stood at $5.6 million as of November 9, 2000, its ability to continue revenue growth in the near term December 2000 quarter is being impacted by material component shortages, lengthening material lead times and delays in receiving recent new orders, which impact our manufacturing cycle time.

The Company is continuing to expand critical component purchases in advance of receiving orders to address this issue and expects that any revenue shortfall from this situation will be recovered in the fourth quarter ended March 2001.

AM Communications, Inc., located in Quakertown, Pennsylvania, is a leading provider of plant, headend, and hub management solutions to the broadband industry. AM's solutions provide network operators with greater control over their network's performance levels and reliability, giving them a competitive edge in today's deregulated communications environment.

Through partnerships with leading network technology companies including Philips, Scientific-Atlanta, General Instrument/Motorola, ADC, Alpha Technologies, and Invensys, AM Communications has emerged as a true open systems company capable of supporting multi-vendor networks through cooperative engineering. Registered under ISO-9001, AM's 25+ years of quality, dependability, and service are key to designing, building, and implementing management solutions for the broadband network.

Visit us at 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 Reports on Forms 10-KSB and Forms 10-QSB, which are filed by the Company with the Securities and Exchange Commission (SEC).

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