California Microwave Acquires Very Small Satellite Terminal Product Line From GE Capital Spacenet.

SUNNYVALE, Calif.--(BUSINESS WIRE)--CALIFORNIA MICROWAVE, INC. (Nasdaq National Market: CMIC) announced today that it has acquired from GE Capital Spacenet Satellite Services, Inc. its Equatorial and EDB 1000 very small aperture terminal (VSAT) product lines and related assets and its VSAT satellite hub operations located in Mountain View, CA. Essentially no consideration is being paid for the business except for the assumption of liabilities under certain contracts being assumed.

Broadens Satellite Communications Market Position

California Microwave has been manufacturing, under private label, the Equatorial VSAT hubs and receivers for GE (formerly GTE Spacenet) for three years. This acquisition is an opportunity for California Microwave to complement its own full line of satellite communications earth stations with one-way, data broadcast VSATs. California Microwave will have a stronger presence in the financial services and news distribution markets as a result. The 60 customers for these products and services represent an installed base of some 10,000 VSATs and add approximately $4 million to California MicrowaveUs backlog.

Strengthens International Growth

With the acquisition, California Microwave gains an extensive international customer base. The customers are in Australia, Brazil, Canada, China, Hong Kong, India, Indonesia, Mexico, Poland, Russia, Spain, Singapore, and Sweden. The China customers include China National Petroleum Corporation, for which California Microwave has manufactured an interactive VSAT network with 625 remotes. For that network, California Microwave is providing technical support and post-sale services until the year 2002. Another China customer, the Xinhua News Agency, has 300 data broadcast VSATs and has recently signed a contract with California Microwave to purchase a next-generation, high-speed Ku-Band VSAT network.

California Microwave, Inc. is a leader in satellite and wireless communications. Founded in 1968, the company operates facilities in seven states and sells into more than 75 countries. California Microwave is the leading US supplier of telecommunications satellite earth stations and microwave radios used in wireless communications. Its strategy calls for significant expansion in the wireless area. In fiscal 1994, international sales were $154 million, or 42% of $369 million in total sales, with sales to Asia more than doubling to $60 million. Satellite earth stations and products represented 48% of sales in fiscal 1994.

CONTACT: California Microwave, Inc.

Stephanie M. Day, 408/720-6229

William Dunk Partners

Deborah Passik, 214/960-9611