AML Communications Reports First Quarter Results.

CAMARILLO, Calif. -- AML Communications, Inc. (OTCBB:AMLJ) today announced results for the first quarter ended June 30, 2006.

Net sales for the first quarter were $2.3 million, compared with $2.5 million for the same period a year earlier. Net profit for the first quarter was $26,000, or $0.00 per share, compared with a net profit of $249,000, or $0.02 per share, for the same period a year ago.

Results analysis, comparisons to past performance and forecast:

Revenues for the first quarter were as internally forecasted and approximately 19% higher than the previous quarter (fourth quarter ended March 31, 2006). Fourth quarter results were an exception that resulted from an outstanding amount of first-time production items and increased research and development ("R&D") costs. Revenues for the first quarter were lower than the same period a year ago due to lower orders for production items and an increase in orders for new projects requiring R&D. An earnings comparison to the same period a year ago shows both the impact of reduced production revenues as well as the increased R&D.

The Company plans to continue its R&D activity at an accelerated pace, and although results similar to the previous quarter are possible in the future, investments in long-term R&D programs remain necessary in the long lifecycle of defense contracts. The Company derives and will continue to derive increased revenues from long-term defense contracts. Such contracts frequently span 5-20 years, after first production orders. The gap between the initial investment (R&D phase) and first production orders is usually 2-5 years. Given the long gestation period, investments need to be sustained for a number of years before revenues are generated. In this regard, the Company is in its third year of investing into such contracts and the Company's management believes that the Company will benefit from production contracts of substantial size. It will remain the Company's strategy to be profitable on a year-to-year basis, while investing the balance of the Company's resources in long-term programs.

AML Communications is a designer, manufacturer and marketer of amplifiers and related products that address the Defense microwave market. The Company's Web site is located at http://www.amlj.com.

This press release contains forward-looking statements made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, the Company's views on future profitability, commercial revenues, market growth, capital requirements, new product introductions, and are generally identified by words such as "thinks," "anticipates," "believes," "estimates," "expects," "intends," "plans" and similar words. Forward-looking statements are not guarantees of future performance and are inherently subject to uncertainties and other factors which could cause actual results to differ materially from the forward-looking statements. These factors and uncertainties include: reductions or cancellations in orders from new or existing customers; success in the design of new products; the opportunity for future orders from domestic and international customers, including, in particular defense customers; general economic conditions; the limited number of potential customers; variability in gross margins on new products; inability to deliver products as forecast; failure to acquire new customers; continued or new deterioration of business and economic conditions in the wireless communications industry; and intensely competitive industry conditions with increasing price competition. The Company refers interested persons to its most recent Annual Report on Form 10-KSB and its other SEC filings for a description of additional uncertainties and factors that may affect forward-looking statements. Forward-looking statements are based on information presently available to senior management, and the Company has not assumed any duty to update its forward-looking statements.

AML COMMUNICATIONS, INC.
                       STATEMENTS OF OPERATIONS

                                        For the three months ending
                                       June 30, 2006    June 30, 2005
                                      ---------------- ---------------

Net sales                             $     2,302,000  $    2,486,000
Cost of goods sold                          1,323,000       1,346,000
                                       ---------------  --------------
     Gross profit                             979,000       1,140,000
Operating Expenses:
     Selling, general and
      administrative                          618,000         603,000
     Research and development                 319,000         283,000
                                       ---------------  --------------
          Total operating expenses            937,000         886,000

Profit from operations                         42,000         254,000
Other income (expense):
     Interest income                           11,000           9,000
     Interest expense                         (19,000)         (6,000)
     Other                                        ---             ---
                                       ---------------  --------------
          Total other  (expense)               (8,000)          3,000

Profit before provision for income
 taxes                                         34,000         257,000
Provision for income taxes                      8,000           8,000
                                       ---------------  --------------
Profit after taxes                    $        26,000  $      249,000

                                      ---------------- ---------------


Basic and diluted earnings per common
 share                                $          0.00  $         0.02


Basic weighted average number of
 shares of common stock outstanding        10,234,000      10,066,000


                       AML COMMUNICATIONS, INC.
                             BALANCE SHEET
                          AS OF JUNE 30, 2006

ASSETS
Current Assets:
     Cash and cash equivalents                         $    1,804,000
     Accounts receivable, net of allowance for
      doubtful accounts of $37,000                          1,330,000
     Inventories, net                                       1,601,000
     Prepaid Assets                                           120,000
                                                        --------------
          Total current assets                              4,855,000
Property and Equipment:
     Property and Equipment, at cost                        5,467,000
     Less -- Accumulated depreciation and amortization     (3,512,000)
                                                        --------------
          Property and Equipment, net                       1,955,000

Deferred Tax Asset                                          1,662,000
Intangible Assets:
   Technologies, net                                          791,000
   Patents                                                    140,000
   Customer lists, net                                        103,000
   Trademarks                                                 181,000

Other assets                                                   16,000
                                                        --------------
          Total Assets                                 $    9,703,000
                                                        ==============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
     Accounts payable                                  $      160,000
     Advances received from customers                          13,000
     Line of credit, net                                      207,000
     Current portion of L-T Debt                               10,000
     Accrued expenses:
     Accrued payroll and payroll related expenses             202,000
     Accrued federal income taxes                               8,000
     Other accrued expenses                                   130,000
                                                        --------------
          Total current liabilities                           730,000

Notes Payable `Bank of America' building                      626,000

Stockholders' Equity:
     Common stock, $.01 par value: 15,000,000 shares
      authorized; 10,234,166 shares issued and
      outstanding at June 30, 2006                            102,000
Capital in excess of par value                             13,520,000
Accumulated deficit                                        (5,275,000)
                                                        --------------
     Total stockholders' equity                             8,347,000

          Total Liabilities and equity                 $    9,703,000
                                                        ==============