AML Communications Reports Third Quarter Results; Completes Additional $500,000 Equity Private Placement.

Business Editors

CAMARILLO, Calif.--(BUSINESS WIRE)--Jan. 31, 2002

AML Communications, Inc. (Nasdaq:AMLJ) today announced results for the third quarter ended December 31, 2001.

Net sales for the quarter were $972,000, compared with $1.2 million for the same period a year earlier. The Company reported a net loss for the quarter of $249,000, or $0.03 per share, compared with a net loss of $1.5 million, or $0.23 per share, for the same period a year ago. Net sales for the nine months ended December 31, 2001 were $4.2 million, compared with $3.9 million for the same period last year. The net loss for the nine months ended December 31, 2001 was $368,000, or $0.05 per share, compared with a net loss of $3.8 million, or $0.60 per share, for the same period last year.

Jacob Inbar, president and chief executive officer, said, "We continue on this year's course of increasing revenues and reducing costs and are pleased with our year to date achievements. Our sales for the third quarter reflect a delay in planned shipments for our two-way messaging products. However, we believe that barring any additional delays, we will be able to include the delayed shipments within our deliveries for the current quarter. Additionally, we are encouraged by the 200% growth in year-over-year sales of our microwave integrated circuit (MIC) products that serve the defense sector."

The Company also announced the completion of a series of equity private placements of its common stock over the past several months totaling $500,000. The aggregate $500,000 investment was allocated evenly between a group of outside investors and a group consisting of members of the Company's board of directors and senior management. Under the terms of the private placements, the common stock was priced at a discount of twenty-five percent of the average closing share price for the three days prior to the applicable closing.

Commenting on the equity private placement, Mr. Inbar said, "We appreciate the commitment that these two groups have made to our organization. The additional capital will afford us the ability to expand our sales and marketing and engineering efforts."

The information contained in this press release contains certain forward-looking statements that involve risks and uncertainties, such as the statements of the Company's plans, objectives, expectations and intentions. The Company's actual results could differ materially from those indicated by such statements as a result of various factors including: 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; general economic conditions; 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 Company's customers' marketplaces; intensely competitive industry conditions with increasing price competition; business conditions; and, growth in the wireless communications market, as well as those factors discussed in the Company's Form 10-KSB and Form 10-QSB on file with the SEC.

                       AML COMMUNICATIONS, INC.
               Selected Condensed Financial Information
             (In $000's except for per share information)

STATEMENTS OF OPERATIONS:    Three Months Ended     Nine Months Ended
(Unaudited)                     December 31,          December 31,
                             2001          2000     2001        2000

Net sales                  $  972      $  1,179   $ 4,217    $  3,905
Cost of goods sold            643         1,205     2,647       3,733

Gross profit                  329           (26)    1,570         172

Operating expenses:
  Selling, general
   & administrative           256           512       917       1,747
  Research and development    311           638     1,044       2,014

Total operating expenses      567         1,150     1,961       3,761

Operating loss               (238)       (1,176)     (391)     (3,589)
  Other expense
   (income), net               11            --       (23)        (64)

Loss before benefit
 from income taxes           (249)       (1,176)     (368)     (3,525)
Benefit for income taxes       --           288        --         288


Net loss                   $ (249)      $(1,464)    $(368)    $(3,813)

Basic and diluted
 loss per share            $(0.03)      $ (0.23)   $(0.05)    $ (0.60)

Basic and diluted
 weighted average number
 of shares of common stock
 outstanding                7,416         6,317     7,416       6,317




                                  (Unaudited)       (Audited)
BALANCE SHEETS:                   December 31,      March 31,
                                     2001             2001

Current assets:
  Cash, cash equivalents
   and marketable securities       $  275           $  860
  Accounts receivable, net            846              740
Inventories                         1,391            1,138
  Other current assets                160              345

Total current assets                2,672            3,083

Property and equipment, net         1,481            1,869
Other assets                          109              118

Total assets                      $ 4,262          $ 5,070



Current liabilities:
     Accounts payable             $   645          $ 1,438
     Line of credit                   229              143
     Accrued expenses                 553              603
     Current portion of capital
      lease obligations               212              185

Total current liabilities           1,639            2,369
Notes Payable-Officers                 50               --
Capital lease obligations, net        392              412
Stockholders' equity                2,181            2,289

Total liabilities and
 stockholders' equity            $  4,262          $ 5,070