Acrodyne Communications, Inc. Announces First Quarter 2000 Results.

Business Editors

BLUE BELL, Pa.--(BUSINESS WIRE)--May 19, 2000

Acrodyne Communications, Inc. (NASDAQ:ACRO) today announced its results for the first quarter ending March 31, 2000.

For the quarter net sales were $1,575,319 as compared to $3,023,091 for the same period in 1999. Net income was $(764,418) or $(0.1100) per share, on 6,981,161 weighted average common shares outstanding for the three months ended March 31, 2000, as compared to $4,473 or $0.006 per share, on 6,769,523 weighted average common shares outstanding for the same period in 1999.

Net sales for the three months ended March 31, 2000 showed a 53% decrease over net sales for the three months ended March 31, 1999. A. Robert Mancuso, Acrodyne's President and CEO commented, "The ongoing debate and confusion over the appropriate standard for digital television has caused a dramatic slowdown in the purchase of both analog and digital transmission equipment, which in turn has caused a slowdown in our sales. As the debate for co-approval of both the American and European standards rages on, now spearheaded by the major networks, the industry is beginning to experience resurgence in the purchase of analog equipment to replace a myriad of very old equipment. While we expect a dramatic improvement in analog purchases over the second half of year 2000, we do not expect significant digital purchases until the standards issue has been resolved.

"The delay in the conversion from analog to digital has given us the opportunity to reposition the company from a niche to a mainstream supplier of transmission equipment and services, as evidenced by our continued commitment to facilities, people and technology, and the development and introduction of our new IOT based line of high power transmitters. Substantial shipments of the new Quantum Line of analog and digital transmitters are expected to begin in the fourth quarter of this year.

"We are confident that the industry remains committed to the analog to digital conversion, estimated to cost approximately $2.5 billion in transmission purchases over the next five (5) years."

Acrodyne Industries, Inc., the operating subsidiary of Acrodyne Communications, Inc. is an established and respected manufacturer of television broadcast equipment. In business over three decades, the Company has developed the leading position as a technologically advanced, high quality low cost producer of transmitters and translators used by television stations to broadcast and retransmit over-the-air signals.

Acrodyne Communications, Inc.
Consolidated Balance Sheet

                                   March 31,            December 31,
                                     2000                  1999

  -------------------   -------------------
               Assets            (Unaudited)

Current assets:
  Cash and cash equivalents       $  33,332              $664,951
  Short term investments            200,000               200,000
  Accounts receivable, net of
   allowance for doubtful
   accounts                       1,218,691             1,335,158
  Inventories                     6,881,895             6,401,277
  Prepaid expenses and deposits     127,928               412,108
  Other Assets                      170,000               220,000

 -------------------   -------------------
    Total current assets          8,631,846             9,233,493

Property, plant and equipment,
 net                                552,218               570,182
Non-compete agreement, net          342,072               360,822
Goodwill, net                     3,860,087             3,899,211

  ===================   ===================
    Total assets                 13,386,223            14,063,708

  ===================   ===================
Liabilities and Shareholders' Equity

Current Liabilities:
  Current portion of long-term
   debt                              61,891                69,947
  Borrowings under Credit Line    1,559,405             1,613,404
  Debenture Credit Line             660,000
  Accounts payable                1,461,589             1,801,883
  Accrued expenses                  259,084               516,405
  Deferred revenue                   16,500                16,500
  Customer advances                 640,907               984,268
    Total current liabilities     4,659,376             5,002,407

Long-term debt                                             12,021
Non-compete liability               843,033               845,990
    Total liabilities             5,502,408             5,860,418

  -------------------   -------------------
Shareholders' equity:
  Preferred stock, par value $1.00
    8% Convertible Redeemable
     Preferred Stock                  6,500                 6,500
Common stock, par value $.01;
 35,000,000 shares authorized
 6,981,161 shares issued and
 outstanding on March 31, 2000       69,812                67,942
 6,794,161 shares issued and
 outstanding on December 31, 1999

Additional paid-in-capital       20,764,075            20,750,148
Accumulated deficit             (12,264,437)          (12,621,300)
  Total shareholders' equity      7,883,815             8,203,290
  Total liabilities and
   shareholders' equity         $13,386,223           $14,063,708

  =     ============          ===========

Acrodyne Communications, Inc.
Consolidated Statement of Operations
(Unaudited)

                                     Three Months Ended
                                       September 30,
                                   2000             1999

Net Sales                       $1,575,319        $3,023,091
Cost of Sales                    1,149,982         1,931,348
  Gross Profit                     425,336         1,091,743

Operating Expenses:
  Engineering, R & D               175,609           224,479
  Selling                          277,708           351,191
  Administration                   565,063           428,112
  Amortization                      57,874            57,874
    Total Operating Expenses     1,076,254         1,061,656

Operating (Loss) Income           (650,917)           30,087

Other Income (Expense)
  Interest Expense, Net            (99,755)          (11,918)
  Other Income, Net                    282               332

Net Loss                          (750,390)           18,501

Dividend on 8% Preferred Stock     (14,028)          (14,028)

Net Income (Loss) available to
 Common Shares                    (764,418)            4,473

Net Income (Loss) per Common
 share                            $(0.1100)          $(0.006)
Weighted average shares
 outstanding diluted             6,981,161         6,769,523
Net Loss per Common share         $(0.1100)          $(0.006)
Weighted average shares
 outstanding                     6,981,161         6,320,572