Acrodyne Communications, Inc. Announces First Quarter Results.

BLUE BELL, Pa.--(BUSINESS WIRE)--May 18, 1998--Acrodyne Communications, Inc. (NASDAQ: ACRO) today reported its results for the first quarter ended March 31, 1998.

For the three months ended March 31, 1998 net sales were $3,163,975 as compared to $2,268,198 for the same period in 1997. Net income was $21,602, or a $0.004 per share, on 5,528,805 weighted average shares outstanding for the three months ended March 31, 1998, as compared to a net loss of ($374,917), or a loss of ($0.09) per share, on 4,401,303 weighted average common shares outstanding for the same period in 1997.

During the quarter, sales rose 39.5% due primarily, the Company believes, to the issuance by the Federal Communications Commission of the final channel allocations relative to Digital Television. Domestic High Power sales, which were basically non-existent in fiscal 1997 increased to $1,793,580 during the three months ended March 31, 1998 as compared to the three months ended March 31, 1997. Gross margins improved in the most recent quarter to 32% as compared to 26% for the same period a year earlier as the greater percentage of High Power in foreign sales demand higher margins.

Operating expenses increased 9% during the quarter due to increases in research and development expenditures and administrative expenses. These expenses were offset by interest income compared to interest expense in the year earlier period. A. Robert Mancuso, Chairman and CEO, commented, "After a extended period of relative inaction we are finally seeing indications that the logjam related to the sale of High Power Transmitters has finally been broken. The FCC's channel allocations removes any lingering doubt that may have existed that the transition to digital tv will occur. We expect a rapid acceleration of requests for information and quotations going forward. We are ideally suited to satisfy the total demands of the broadcast industry with a line of products that span high and low power analog and digital transmitters."

Acrodyne Industries, Inc., the operating subsidiary of Acrodyne Communications, Inc., is an established and respected manufacturer of television broadcast equipment. In business over 25 years, 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. -0-

              ACRODYNE COMMUNICATIONS, INC.
                  SUMMARY OF RESULTS
                      (Unaudited)


                                    Three Months Ended March 31,
                                      1998                1997

Revenues                        $  3,163,975       $   2,268,198
Gross Profit                       1,030,537             596,313
Total Operating Expenses           1,000,581             932,702
Operating Profit/(Loss)               29,956            (336,389)
Other Income/(Expense)                 5,674             (18,640)

Net Income/(Loss)                     35,630            (355,029)

Dividend on 8% Convertible
Redeemable Preferred Stock            14,028            (19,888)

Net Income/ (Loss) Available to
 Common Shares                        21,602           (374,917)

Net Income/ (Loss) Per Share           0.004              (0.09)

Weighted Average Shares
 Outstanding                       5,528,805          4,401,303
-0-

CONTACT: A. Robert Mancuso, Chairman and CEO

ACRODYNE COMMUNICATIONS, INC.

[phone]

http://www.acrodyne.com

or

Stephen D. Axelrod, CFA 

Susan T. Bolen (Media)

WOLFE AXELROD ASSOCIATES

[phone]; [phone]

e-mail: [e-mail]