AML Communications Reports Third Quarter Results; Record Revenues and Earnings from Defense Sector.

Business Editors

CAMARILLO, Calif.--(BUSINESS WIRE)--Feb. 2, 2004

AML Communications, Inc. (OTCBB:AMLJ) today announced results for the third quarter ended December 31, 2003.

Net sales for the quarter were $2.0 million, compared with $1.3 million for the same period a year earlier. The Company reported net earnings for the quarter of $356,000, or $0.05 per share, compared with a net loss of $200,000, or ($0.03) per share, for the same period a year ago. Net sales for the nine months ended December 31, 2003, were $5.3 million, compared with $3.6 million for the same period last year. The net income for the nine months ended December 31, 2003, was $910,000, or $0.12 per share, compared with a net loss of $694,000, or ($0.09) per share, for the same period last year.

Jacob Inbar, president and chief executive officer, said, "I am very pleased with the results. With Defense revenues for the quarter growing by more than 65% compared with the same period last year, we remain highly focused on this sector."

AML Communications is a designer, manufacturer and marketer of amplifiers and related products that address the Defense microwave and Wireless communications markets. 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.
                    Selected Financial Information
             (In $000's, except for per share information)

                       STATEMENTS OF OPERATIONS


                                 Three Months Ended  Nine Months Ended
                                    December 31,       December 31,
                                   2003      2002     2003      2002
                                   ----      ----     ----      ----

Net sales                         $2,003    $1,266   $5,280    $3,638
Cost of goods sold                 1,047       857    2,683     2,252
    Gross profit                     956       409    2,597     1,386

Operating expenses:
    Selling, general &
     administrative                  349       287      993       928
    Research and development         177       313      550       949

                                     526       600    1,543     1,877

Profit (loss) from operations        430      (191)   1,054      (491)

    Other income (expense), net      (40)       (9)     (56)     (203)
Profit (loss) before provision
 for income taxes                    390      (200)     998      (694)
Provision for income taxes            34        --       88        --

Net profit  (loss)                  $356     $(200)    $910     $(694)

Basic earnings (loss)
 per common share                  $0.05    $(0.03)   $0.12    $(0.09)
Basic weighted average number
 of shares of common stock
  outstanding                      7,838     7,829    7,833     7,829

Diluted earnings (loss) per
 common share                      $0.04    $(0.03)   $0.09    $(0.09)
Diluted weighted average number
 of shares of common stock
  outstanding                      9,616     7,829    9,611     7,829


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

                        CONDENSED BALANCE SHEET


                                          December 31,    March 31,
                                                 2003         2003
                                                 ----         ----
ASSETS
Current Assets:
   Cash and cash equivalents                   $1,432         $195
   Accounts receivable, net of
    allowance for doubtful accounts of
    $34,000 at December 31, 2003 and
    $36,000 at March 31, 2003                     922          609
   Inventories, net                               922        1,059
   Other current assets                           156          135
       Total current assets                     3,432        1,998

Property and Equipment, at cost:                3,664        4,267
   Less - Accumulated depreciation
    and amortization                           (3,214)      (3,631)

                                                  450          636

Other Assets                                       43           43

                                               $3,925       $2,677

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
   Accounts payable                              $587         $568
   Line of credit                                 684          482
   Current portion of capital lease
    obligations                                   117          168
   Accrued expenses:
    Accrued payroll and payroll
     related expenses                             136          160
    Accrued state income taxes                     88           --
    Other accrued liabilities                      43          243
       Total current liabilities                1,655        1,621

Notes payable - officers                          295           50
Notes payable - investors                          43           --
Capital Lease Obligations, net
 of current portion                               106          126
       Total liabilities                        2,099        1,797

Stockholders' Equity:
   Preferred stock, $.01 par value:
    1,000,000 shares authorized; no
     shares issued or outstanding                  --           --
   Common stock, $.01 par value:
    15,000,000 shares authorized;
     7,837,584 shares issued and
     outstanding at December 31, 2003
     and 7,829,459 shares outstanding
     at March 31, 2003                             73           73

   Capital in excess of par value              10,338       10,301
   Accumulated deficit                         (8,585)      (9,494)
       Total stockholders' equity               1,826          880

                                               $3,925       $2,677