Applied Signal Technology, Inc. Announces the Incorporation of Transcendent Technologies, Inc.

Business Editors

NAB2000

SUNNYVALE, Calif.--(BUSINESS WIRE)--April 10, 2000

Applied Signal Technology, Inc. (Nasdaq:APSG) announced today the incorporation of Transcendent Technologies, Inc., one of its two planned wholly owned subsidiaries. Transcendent Technologies, Inc. will provide network management and spectrum monitoring systems to the telecommunications marketplace designed to enhance the quality of satellite and terrestrial wireless communications.

Stan Huber, Transcendent Technologies President and Chief Executive Officer commented, "Transcendent's mission is to offer our customers revenue-enhancing solutions to their fixed bandwidth transport networks. Given the ever-increasing constraints on satellite bandwidth and wireless spectrum availability, the service providers are confronted with the constant demands of finding more sophisticated ways to provide reliable signal quality to their customers while meeting increasing capacity demands. As wireless transport becomes an important part of the global information network by providing "last mile" connectivity, the need to provide bandwidth efficient communications techniques as well as effectively managing these networks only becomes more crucial to the service providers' success. By transferring the sophisticated digital signal processing technologies developed by Applied Signal Technology, Inc. for the U.S. Government to commercial applications, Transcendent Technologies is uniquely qualified to meet the needs of the commercial marketplace.

Mr. Huber went on to say, "Transcendent Technologies is fortunate to have had the opportunity to work with one of the world's leaders in satellite communications services and is nearing completion of the installation of a global quality monitoring system. We are participating in this week's National Association of Broadcasters (NAB) show in Las Vegas and will be demonstrating our system on the convention floor."

Applied Signal Technology, Inc., the parent company of Transcendent Technologies, Inc., designs, develops, manufacture and markets advanced digital signal processing equipment to process a wide range of telecommunications signals for commercial and government applications. For additional Company-related information, visit the Company's website located at www.appsig.com.

Except for historical information contained herein, matters discussed in this news release may contain forward looking statements that involve risks and uncertainties including customer concentration, competition, dependence upon personnel, volatility of operating results, use of estimates in program costs-to-complete, and other risks detailed time to time in the Company's SEC reports including its latest Form 10-K filed for the fiscal year ended October 31, 1999.