AML Communications Reports Third Quarter and Nine Months Results; Backlog Continues to Increase.

CAMARILLO, Calif.--(BUSINESS WIRE)--Jan. 27, 1998--AML Communications Inc. (Nasdaq:AMLJ) Tuesday announced results for the third quarter and nine months of fiscal 1998 with a quarter-to-quarter increase in sales and a record backlog at Dec. 31, 1997, of more than $3.3 million.

Revenues for the quarter totaled $3.6 million, compared with revenues of $4.1 million for the three-month corresponding period in the prior fiscal year. The revenue for the quarter represents a 29 percent increase from the company's second fiscal quarter.

Net income for the third quarter totaled $261,000, or $0.04 per share, compared with $729,000, or $0.11 for the corresponding period in the prior fiscal year.

For the first nine months of the fiscal year, the company reported net sales of $8.9 million, compared with $11.6 million for the nine month corresponding period in the prior fiscal year. Net income for the nine-month period was $497,000, or $0.08 per share, vs. net income of $2.1 million, or $0.32 per share, for the corresponding period in the previous year.

Jacob Inbar, president and chief executive officer, commented on the quarter's results, said, "We continue to see positive trends as a result of the diversification in our products and channels to market.

"During the quarter, AML received three follow-on contracts from an original equipment manufacturer (OEM) in Brazil, PageMart Wireless, and AT&T Wireless. These new orders were a direct result of AML's implementation of its new marketing strategy to expand into diversified markets in the wireless communications industry."

Inbar noted that, following the completion of the third quarter, the company received a new production order, valued at $2.2 million, from PageMart for paging amplifiers. Currently, including this order, the company's backlog has increased to more than $4.0 million.

Inbar further commented by saying, "Overall, during this transitional year for AML, we believe the company's activity for the nine months of fiscal 1998 validates our continued focus on market and product diversification. Looking forward, we believe we are well positioned to take advantage of additional opportunities as they develop."

AML Communications designs, manufactures and markets multicarrier amplifiers, masthead amplifiers and repeaters for the cellular, PCS, paging and satellite communication markets. -0-

The information contained in this news release contains certain forward-looking statements that involve risk and uncertainties, such as the statements of the company's plan, 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 those discussed in the company's Form 10-KSB and Form 10-QSB on file with the Securities and Exchange Commission. -0-

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

INCOME STATEMENTS:
(unaudited)
                          Three Months Ended        Nine Months Ended
                                Dec. 31,                 Dec. 31,
                            1997        1996         1997       1996

Net sales                $ 3,605     $  4,073     $ 8,925     $11,631
Cost of goods sold         2,069        1,890       4,933       5,396
Gross profit               1,536        2,183       3,992       6,235

Operating expenses:
  Selling, general
   & administrative          726          657       2,008       1,977
  Research and development   497          425       1,454       1,124
Total operating expenses   1,223        1,082       3,462       3,101

Operating income             313        1,101         530       3,134
  Other income, net         (100)         (57)       (258)       (158)
Income before provision
   for income taxes          413        1,158         788       3,292
Provision for income taxes   152          429         291       1,218
Net income                $  261     $    729      $  497     $ 2,074

Earnings per share        $ 0.04     $   0.11      $ 0.08     $  0.32
Weighted average common
  shares outstanding       6,443        6,502       6,398       6,506


BALANCE SHEETS:                  (unaudited)        (audited)
                                Dec. 31, 1997      March 31, 1997
Current assets:
  Cash, cash equivalents and    $    7,591         $   8,025
      marketable securities
  Accounts receivable, net           2,520             1,910
  Inventories                        2,877             1,961
  Other current assets                 187               203
Total current assets                13,175            12,099

Property and equipment, net          2,099             1,963
Other assets                           493               481
Total assets                   $    15,767         $  14,543

Current liabilities:
  Accounts payable             $     1,422         $     857
  Accrued expenses                     455               603
  Income taxes payable                 515               244
  Current portion of capital
     lease obligations                  28                40
Total current liabilities            2,420             1,744
Capital lease obligations, net          44                62
Stockholders' equity                13,303            12,737
Total liabilities
 and stockholders' equity      $    15,767         $  14,543

CONTACT: AML Communications Inc., Camarillo

Kirk A. Waldron, 805/388-1345, Ext. 201

or

Pondel Parsons & Wilkinson

Michael Pollock/Cecilia Wilkinson, 310/207-9300