Herley Announces Agreement to Acquire AMT in an All Cash Transaction.

Business Editors

LANCASTER, Pa.--(BUSINESS WIRE)--Sept. 14, 2000

Herley Industries, Inc. (NASDAQ: HRLY), today announced that it has reached an agreement in principal to acquire AMT for cash.

AMT is a leader in the design, development and manufacture of high power, solid state amplifiers for the scientific and medical markets. Closing is expected within thirty days subject to a satisfactory due diligence and approval of Herley's Board of Directors.

AMT has built strong customer relationships based on their ability to deliver products on time that provide exceptional performance, high quality and superior reliability. AMT's customers include major corporations, universities, and research centers worldwide.

AMT's scientific products, power amplifiers covering frequency ranges of 6 MHz to 950 MHz, are used in Nuclear Magnetic Resonance (NMR) systems.

Magnetic Resonance Imaging (MRI) systems use AMT's medical products. These power amplifiers cover the frequency ranges of 10 MHz to 200 MHz.

John M. Kelley, Senior Vice President of Herley stated, "We are very pleased that AMT will be joining Herley. Synergies exist between the two organizations and the addition of AMT gives Herley expanded capabilities and access into two highly visible and profitable markets."

Kelley continued, "AMT has a solid customer base and when joined with Herley's newly created Power Amplifier Systems Group, we will have both the ability and the engineering strength to explore opportunities in the wireless amplifier market. The consolidation of the manufacturing operation into our Lancaster, PA facility will realize the synergies and economies of scale from initiatives already in place."

Herley Industries, Inc. is a global leader in the design, development and manufacture of complex microwave solutions for the commercial wireless and defense industries. Based in Lancaster, PA, Herley has five manufacturing facilities and approximately 600 employees worldwide. Additional information about the company can be found on the Internet at www.herley.com.

Safe Harbor Statement - Except for the historical information contained herein, this release may contain forward-looking statements. Such statements are inherently subject to risks and uncertainties. The Company's results could differ materially based on various factors, including, but not limited to cancellation or deferral of customer orders, difficulties in the timely development of new products, difficulties in manufacturing, increased competitive pressures, and general economic conditions.