AM Communications Announces Preliminary Fourth Quarter and Fiscal 2001 Results; Annual Revenues Up 57% From A Year Ago.

Business Editors/Hi-Tech Writers

QUAKERTOWN, Pa.--(BUSINESS WIRE)--April 6, 2001

AM Communications, Inc. (OTC:AMCM) announced preliminary (unaudited) revenues and operating results for its fourth quarter and fiscal year ended March 31, 2001.

All financial information presented is preliminary and subject to completion of the annual audit and filing of the Company's Form 10KSB with the SEC by June 30, 2001.

Revenues for the fourth quarter of fiscal 2001 were $4.6 million, up 43% compared to $3.2 million reported for the fourth quarter of fiscal 2000. Revenues for the fiscal year ended March 31, 2001 were $15.8 million, up 57% from the $10.1 million reported for the comparable period a year ago.

The Company expects to report net income for the fiscal year ended March 31, 2001 of at least $1.0 million, compared to a loss of $1.1 million in the prior fiscal year.

Commenting on the results, Javad Hassan, Chairman, said, "We are very proud of achieving a 57% annual revenue growth given the economic environment we are operating in. Our revenue base for the fourth quarter reflected approximately $700,000 of billings from our new Broadband Services group, which is focused on delivering system installation and support services to cable operators. This group, under the direction of Mac Qurashi, is working on multiple contracts with a major nationwide cable system operator as their initial customer and anticipates increasing demand for their services. Our core OmniStat(TM) monitoring product line revenue was $3.9 million for the fourth quarter with the growth in revenue coming from several new customers, including our new business with Charter Communications. Our Network Integration Solutions group had limited revenue contribution for the period, but commenced work on the new Charter business."

"Backlog was $3.2 million as of March 31, 2001, compared to $4.0 million a year ago. This decline is due to seasonally low end-of-year customer budgets, combined with a slower than expected release of budget monies for the new year. While backlog has declined, recent order input has been strong, and we have reason to believe that our fiscal 2002 annual revenue levels will grow at least 20% over the recently completed fiscal 2001 year. We foresee continued strong revenue contributions from the new Broadband Services group, which is expected to supplement relatively steady revenues from the Broadband Products group. We have also added a European Sales Manager working out of our newly established UK sales office. Our profitability improvement in 2001 is due to our expanding revenue base and the ability to maintain margins through the cost effective NeSTronix strategic manufacturing association that we operate under," concluded Mr. Hassan.

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 AM 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 and OmniStat name are registered trademarks of AM Communications, Inc.