AML Communications Reports Third Quarter Results.

CAMARILLO, Calif. -- AML Communications, Inc. (OTCBB:AMLJ) today announced results for the third quarter ended December 31, 2006.

Net sales for the quarter were $2.2 million, compared with $2.5 million for the same period a year earlier. The Company reported a net profit for the quarter of $60,000, or $0.01 per share, compared with net earnings of $294,000, or $0.03 per share, for the same period a year ago.

Results analysis, comparison to past performance

Revenues for the quarter were lower than the same period a year earlier due to a reduction in spot market orders, first noted in the early part of the fiscal year. The pace of new orders has since improved (see our press release of Monday, December 18, 2006). The improved trend is forecasted to continue. Our expectations stem from the investments made by the Company to diversify the composition of orders by developing products that target long-term, large-program contracts. These investments and associated strategy have, in management's opinion, reached maturity. The Company stands to benefit from the investments made as the programs enter their production phases.

AML Communications is a designer, manufacturer and marketer of amplifiers, subsystems and related products that address the Defense Microwave 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 "forecasts," "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.

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