Herley Signs Exclusive Sales and Marketing Agreement With Major International Group.

Business Editors/Hi-Tech Writers

LANCASTER, Pa.--(BUSINESS WIRE)--Feb. 6, 2001

Herley Industries, Inc. (NASDAQ:HRLY), announced today that it has signed an exclusive Sales and Marketing Agreement with EADS ewation GmbH, Grintek ewation ("GEW"), Sysdel Close Corporation and Telephan AS to market products under the registered trademark of MRCM(TM).

GEW is a division of Grintek Group Limited, located in Pretoria, South Africa.

EADS ewation is the signal intelligence/electronic warfare division of European Aeronautic Defence and Space Company ("EADS"), the world's third largest air and aerospace company. EADS was formed July 2000 from the merger of Daimler Chrysler Aerospace, France's Aerospatiale Matra and Spain's Casa.

MRCM(TM) products offer a variety of high-end, cost effective equipment and standardized sub-systems, including powerful wideband DF equipment as well as wideband monitoring and classification equipment with extremely fast data processing capability for analysis and signal decoding.

This agreement grants to Herley the sole and exclusive right to sell and market MRCM(TM) products in North America. EADS ewation and GEW are granted the sole and exclusive rights to sell and market MRCM(TM) products throughout the rest of the world.

Myron Levy, Herley President stated, "We are very pleased to be joining EADS ewation, GEW, Sysdel Close and Telephan AS in this exclusive agreement to market MRCM(TM) products. Over time, we expect this agreement will grow into a very close working relationship."

Levy continued, "Each of these companies has an excellent reputation in the industry and we believe Herley will receive increased visibility and international attention as a result of our association with them."

Herley Industries, Inc. designs, develops and manufactures complex microwave products and systems for defense and commercial wireless applications worldwide. Based in Lancaster, PA, Herley has seven manufacturing facilities and approximately 600 employees. 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.