AM Communications Announces Enhanced Transponder Family.

Business Editors/Hi-Tech Writers

QUAKERTOWN, Pa.--(BUSINESS WIRE)--June 8, 2001

AM Communications, Inc. (OTC:AMCM) - announced today the availability of their fourth generation transponder family for monitoring network equipment.

The new series of transponders is based on AM's FlexStat III technology core. All of AM's transponder designs are based on an interchangeable embedded FlexStat module. As the FlexStat technology is improved or cost reduced, all of AM's transponder products benefit from the enhancements.

The new FlexStat III-based transponders include wide-range frequency agility, programmable DSP-based return RF transmitters, enhanced micro-controller resources, and full electrical compliance with pending SCTE HMS standards. The units also feature completely downloadable operating firmware, allowing the units to be field upgraded to HMS communications protocols when the standard is finalized and field-proven.

Joe Rocci, VP and General Manager of AM's Broadband Systems Division commented: "We're really pleased with the enhancements that FlexStat III has imparted to our whole transponder product family. In addition to using the technology in our own products, we've also shipped many thousands of the FlexStat III modules to network equipment manufacturers around the world who are embedding FlexStat technology into their own products. Our FlexStat technology core allows us to configure transponder solutions for each customer that hit the cost-performance target in the bull's-eye every time."

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, 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 contains forward-looking statements, including statements regarding the Company's financial performance and results of operations. Actual results may differ materially from those projected in such forward-looking statements due to various factors, including: competitive factors, technological developments, customer acceptance of the Company's products and services, general economic conditions, and market demand.

Further information regarding these and other risks of the Company and its business can be found in the Company's filings with the Securities and Exchange Commission (SEC) including the Company's Reports on Forms 10-KSB and Forms 10-QSB. These documents are available at the SEC website: www.sec.gov.

(c)Copyright 2001 AM Communications, Inc. The AM logo is a registered trademark of AM Communications, Inc.