Acrodyne Communications, Inc. Announces Second Quarter Results.

BLUE BELL, Pa.--(BUSINESS WIRE)--August 15, 1997--Acrodyne Communications, Inc. (NASDAQ: ACRO) today reported its results for the three and six months ended June 30, 1997.

For the three months ended June 30, 1997, net sales were $2,710,845 as compared to $3,204,107 for the same period in 1996. Net loss was $570,380, or a loss of $0.13 per share, on 4,461,122 weighted average common shares outstanding for the three months ended June 30, 1997, as compared to a net loss of $89,039, or a loss of $0.03 per share, on 3,100,000 weighted average common shares outstanding for the same period in 1996.

For the six months ended June 30, 1997, net sales were $4,979,043 as compared to $5,414,457 for the same period in 1996. Net loss was $945,296, or a loss of $0.21 per share, on 4,427,574 weighted average common shares outstanding for the six months ended June 30, 1997, as compared to a net loss of $458,337, or a loss of $0.16 per share, on 2,851,000 weighted average common shares outstanding for the same period in 1996.

During the three and six months periods ended June 30, 1997, the Company experienced sales levels which were short of expectations. The Company believes that sales in the domestic marketplace reflect the continued ambivalence on the part of the broadcasting industry to purchase equipment pending a clearer plan for the emergence of digital television (DTV). This delay has been extended by recent transmission conflict resulting from digital channel assignment by the FCC. Non-digital sales remain slow as the market continues a wait-and-see approach and continues to use current equipment while delaying any longer term expansion decisions for higher power equipment. However, while sales have decreased in the high and low-power segments, sales have increased in the mid-power segment as represented by the current replacement market.

In order to generate sales volume and meet the demands of an increasingly competitive market, the Company's margin on sales during the three and six months periods decreased to 26%, from the previous 31% for the comparable 1996 periods. Operating expenses increased during the quarter, primarily due to increased selling expenses as a result of the expanded foreign and domestic sales and marketing efforts through increased advertising, foreign travel and trade show participation, as well as the implementation of a sales commission program.

These expenses were offset by decreased interest expense resulting from the Company's payment of several bank and capital lease debts due to its strong cash flow position and a significant increase in interest income stemming from the investment of operating cash obtained primarily from warrant exercises during the calendar year ended December 31, 1996.

A. Robert Mancuso, Chairman and CEO, commented, "While we are not pleased with our financial performance to date, our results were not totally unexpected considering the present business climate for domestic orders. Following the lead of our major competitors, we have embarked on a cost cutting program which includes a salary freeze, and the reduction of less critical personnel. While our workforce has been recently reduced from 100 to 73 employees, qualified personnel can be rehired incremental to a buildup of backlog.

"We remain optimistic, that with political issues behind us, the domestic broadcaster will resume purchasing replacement analog and start purchasing new digital transmitters to meet their simulcast needs."

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       Six Months Ended
                         June 30,                June 30,
                      1997       1996        1997          1996

Revenues         $ 2,710,845  $ 3,204,107  $ 4,979,043  $ 5,414,457
Gross Profit         711,577    1,019,652    1,307,891    1,713,829
Total Operating
 Expenses          1,254,869    1,045,524    2,187,571    1,815,977
Operating
 Profit/(Loss)      (543,292)     (25,872)    (879,680)    (102,148)
Other Income/
 (Expense)           (10,088)     (44,506)     (28,728)    (337,528)
Net Income/(Loss)  $(553,380)   $ (70,378)  $ (908,408)  $ (439,676)
Dividend on 8%
 Convertible
 Redeemable Preferred
 Stock               (17,000)     (18,661)     (36,888)     (18,661)
Net Income/(Loss)
 Available to
 Common Shares    $ (570,380)   $ (89,039)  $ (945,296)  $ (458,337)
Net Income/(Loss)
 Per Share        $    (0.13)   $   (0.03)  $    (0.21)     $ (0.16)
Weighted Average
 Common Shares
 Outstanding       4,461,122    3,100,000    4,427,574    2,851,000

NOTE: The business of Acrodyne Communications, Inc., formerly known as Acrodyne Holdings, Inc., is conducted through its sole operating subsidiary Acrodyne Industries, Inc. Acrodyne Industries, Inc. was acquired by Acrodyne Holdings, Inc. pursuant to a stock acquisition agreement on October 24, 1994. Prior thereto, Acrodyne Communications, Inc. had no operations. Acrodyne Holdings, Inc. changed its name to Acrodyne Communications, Inc. on June 9, 1995.

CONTACT: A. Robert Mancuso, Chairman and CEO

ACRODYNE COMMUNICATIONS, INC.

[phone]; [phone]

http://www.acrodyne.com

Mona J. Walsh

Stephen D. Axelrod, CFA

Susan T. Bolen (Media)

WOLFE AXELROD ASSOCIATES

[phone]; [phone]

e-mail: [e-mail]