Aeroflex Microelectronic Solutions and Boeing Sign Agreement for Development and Marketing of Advanced Network Technology.

Business Editors

PLAINVIEW, N.Y.--(BUSINESS WIRE)--April 12, 2004

Aeroflex Incorporated (Nasdaq Symbol: ARXX), a leading designer, developer and manufacturer of automated testing solutions and microelectronics for the aerospace, defense and broadband communications markets, and the Boeing Intellectual Property Business have signed a five-year technology licensing agreement allowing Aeroflex Microelectronic Solutions to co-develop and market products based on the Boeing IntelliBus(TM) serial data bus communication standard.

A bus is a high-speed electronic network - an electronic super highway - that allows multiple sensors, actuators and other electronic devices to operate over a single shared communication link. In addition to applications within aerospace and defense, the IntelliBus(TM) Network Systems technology also has applications in industrial automation, marine transportation, medical devices and the automotive industry.

"Originally developed by Boeing to provide higher performance yet simpler, lighter, more functional and affordable on-board network systems for military aircraft, the patented serial data bus technology was refined into the IntelliBus(TM) Network Systems concept through Boeing's Chairman's Innovation Initiative," said Gene Partlow, Boeing Intellectual Property Business vice president. This initiative allows Boeing employees to develop new business ideas from company developed technologies and processes."

"The Boeing Intellectual Property Business brokered the licensing agreement with Aeroflex. Based in Irvine, California, the Boeing Intellectual Property Business leverages the company's broad intellectual property portfolio to enhance economic profit through a variety of licensing, IP generation and protection initiatives. This is a good example of how Boeing leverages its technology, patents and innovative talent to enhance value for the company. Boeing has a goal to standardize IntelliBus(TM) technology in the aerospace, automotive and other industries and Aeroflex is an excellent choice in this undertaking. IntelliBus(TM)-based products are in production now on Boeing's Training System Crew Stations, where IntelliBus(TM) is used to network the large amounts of gauges, switches, lights and sensors over a two wire twisted pair," continued Gene Partlow.

"IntelliBus(TM) is ideally suited for high sensor count applications and Aeroflex provides us with an excellent partner to help meet Boeing's goals and proliferate IntelliBus(TM) technology across multiple industries," states Rob Fosheim, Boeing IntelliBus(TM) Network Systems program manager. "Within the automotive industry, IntelliBus(TM) has demonstration projects in work with European and U.S. based automotive OEMs targeting in-vehicle networking of automotive electronic devices including multi-media devices such as AM/FM radios, DVD and CD changers/players, audio amplifiers and LCD displays and telematic devices such as navigation systems and cellular phones."

The licensing agreement allows Aeroflex Microelectronic Solutions to supply Application Specific Standard Products (ASSP), board level IntelliBus(TM) products, referred to as IBIM (IntelliBus(TM) Interface Modules), and derivative products. Under the agreement, Aeroflex and Boeing's IntelliBus(TM) Network Systems intend to co-develop and proliferate the IntelliBus(TM) standard and products.

"IntelliBus(TM) complements the capabilities of Aeroflex Microelectronic Solutions in our Mixed-Signal ASIC, Circuit Card Assembly (CCA), and integrated circuit data communication standards products," said John Buyko, President, Aeroflex Microelectronic Solutions. "Example applications include automotive multi-media, avionics, industrial and numerous sensor applications. We believe the IntelliBus(TM) standard allows for a level of performance, economy, and simplicity that is not as well served by previously existing bus standards. The technical and application demands are well suited to Aeroflex's capabilities in the Mixed-Signal ASIC, standard product and systems-on-a-chip core competencies."

"We are delighted Boeing selected Aeroflex Microelectronic Solutions for this critical new technology partnership," continued Buyko.

About Aeroflex

Aeroflex Incorporated is a global provider of high technology solutions to the aerospace, defense and broadband communications markets. The Company's diverse technologies allow it to design, develop, manufacture and market a broad range of test, measurement and microelectronic products. The Company's common stock trades on the Nasdaq National Market System under the symbol ARXX and is included in the S&P SmallCap 600 index. Additional information concerning Aeroflex Incorporated can be found on the Company's website: www.aeroflex.com.

All statements other than statements of historical fact included in this press release regarding Aeroflex's financial position, business outlook, business strategy and plans and objectives of its management for future operations are forward-looking statements. When used in this press release, words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to Aeroflex or its management, identify forward-looking statements. Such forward-looking statements are based on the current beliefs of Aeroflex's management, as well as assumptions made by and information currently available to its management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including but not limited to, competitive factors and pricing pressures, the divesture of the thin film interconnect manufacturing business, the integration of the business of each of MCE Technologies, Celerity Systems and the Racal Instruments Wireless Solutions Group with Aeroflex, changes in legal and regulatory requirements, technological change or difficulties, product development risks, commercialization difficulties and general economic conditions. Such statements reflect our current views with respect to the future and are subject to these and other risks, uncertainties and assumptions relating to Aeroflex's financial condition, results of operations, growth strategy and liquidity. Aeroflex does not undertake any obligation to update such forward-looking statements.