Army Removes Stop Work Order At Westwood.

Business Editors

Westwood Corporation (Nasdaq:WNMP) announced today that the U.S. Army removed an existing stop work order covering a contract for Tactical Quiet Generators (TQG) at the company's MCII subsidiary. The contract in question was originally awarded to MCII in September 2001. It is a follow-on award for 30 and 60 kilowatt TQG Generators, which are utilized by multiple arms of the U.S. military to supply a mobile source of electrical power to troops in the field during combat, training, or peacekeeping operations. The contract specifies a six-year term with estimated gross revenue of $156 million including options.

The stop work order was issued in response to a formal protest of the contract award filed with the U.S. General Accounting Office (GAO) in October 2001 by a competitor. The GAO subsequently dismissed the protest in January 2002 on the basis that the Army was taking corrective action. Thereafter, MCII filed a protest at the U.S. Court of Federal Claims in January 2002, on the basis that the Army's proposed corrective action was overbroad. In March 2002, the Court granted MCII's Motion for Injunctive Relief, precluding the Army from re-opening competition, although permitting the Army to re-evaluate a specific section (performance risk) of the proposals. The Army subsequently performed a re-evaluation. The Company's receipt of written authorization from the Army to cancel the stop work order reflects that the Army has completed the re-evaluation and re-affirmed the award to MCII.

For further discussion of the above referenced contract, interested parties are directed to the Company's Form 8-K filings dated October 3, 2001, January 31, 2002, and March 26, 2002.

Westwood Corporation is a leading provider of marine control and power distribution systems and portable generators built to military specifications. The Company's products can be found on every ship in today's U.S. Navy active surface fleet and on certain ships in allied navy fleets. The Company's products also meet demanding standards for a dependable, rugged source of mobile electrical power for field troops of the U.S. Army, Air Force and Marines. For more information please visit the company's Web site at www.westwoodcorp.com.

Certain matters discussed in this release may be forward-looking in nature and, accordingly, are subject to risks and uncertainties. Actual results may differ materially from those described or contemplated.