Datron Systems Receives $8 Million Radio Order.

Business Editors

VISTA, Calif.--(BUSINESS WIRE)--July 6, 2000

Datron Systems Inc. (Nasdaq:DTSI) today announced receipt of an $8 million order from a customer in Asia for communication radios and associated equipment. The order comprises VHF tactical communication radios with encryption capabilities as well as associated spares and support equipment. A portion of the order was delivered prior to the Company's first fiscal quarter ended June 30, 2000.

The remaining majority of the order is expected to be delivered during the next two fiscal quarters ending Dec. 31, 2000.

David A. Derby, chairman, president and chief executive officer, commented, "Datron has steadily upgraded the technology in its radios while maintaining 'backward compatibility' to insure existing customers can purchase newer technology without making 'orphans' of their previously purchased radios. We see this new order from a long-standing customer for radios with the latest encryption technology to be a strong endorsement of our policy.

"We are also proud to have once again arranged satisfactory dollar denominated financing which facilitated this sale."

Derby continued, "The timing of this order has a particularly salutary effect on our communication products subsidiary, Datron World Communications Inc. As may be remembered, this business unit booked a $9 million order near the end of our fourth fiscal quarter ended March 31, 2000 and shipped virtually all that order in response to our customer's urgent needs. As a result, fourth quarter sales and profits were extremely strong, and as a further result, backlog at Datron World Communications at the beginning of the first quarter was only $1.7 million. With this most recent new order calling for deliveries over the next two quarters, and with backlog at Datron World Communications on June 30, 2000 up to $7 million, we look forward to smoother production flow and greater efficiencies in the coming quarters."

This news release may contain "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. A variety of factors could cause the Company's actual results to differ from the anticipated results expressed in such forward-looking statements. These include, among others, uncertainties stemming from the dependence of the Company on foreign sales and on large orders from a relatively small number of customers, risks relating to the decline in the Company's traditional defense business and the Company's efforts to develop and market consumer products, lack of timely development or customer acceptance of new products, changes in products and services offered by satellite service providers and their related suppliers, worldwide economic downturns and currency devaluations, restrictions that may be imposed by the U.S. government on the export of Company products, and the impact of competition. Investors are referred to the Company's periodic reports under the Securities Exchange Act of 1934, including without limitation the Investment Considerations set forth in the Company's Annual Report on Form 10-K.

Datron Systems provides products and services addressing the needs of emerging satellite and radio communication markets.