Microdyne Awarded $3.8 Million Spanish Air Force Contract.

ALEXANDRIA, Va.--(BUSINESS WIRE)--Oct. 7, 1998--Microdyne Corporation (NASDAQ: MCDY) today announced that its Microdyne Communication Technologies, Inc. subsidiary has been awarded a three-year, $3.8 million contract from the Spanish Air Force for major upgrades of test range equipment and systems integration.

The contract calls for the design, supply, integration, installation and testing of airborne equipment and ground-based flight test tracking systems at four locations. These will support current and future NATO aircraft test programs, and the Eurofighter aircraft test program in Spain.

"This contract reaffirms our commitment to expand systems integration for air and ground telemetry and communication systems," says Michael Jalbert, president and CEO of Microdyne. "It enhances our reputation as a solution provider."

To fulfill the airborne component of the agreement, MCTI will upgrade F-16 test aircraft with voice, video and video compression transmitters and antennas. The company will also modernize ground-based tracking and data collection equipment.

This includes three cosecant squared auto-tracking antennas plus a fourth dual-axis tracking antenna, telemetry receivers, diversity combiners and bit synchronizers. Sites are centrally controlled via UTACS, MCTI's configuration management software. Systems also include fiber optic transmitters and receivers, and cable and microwave interface.

According to Bob Andrews, president of MCTI, "This contract is particularly noteworthy because it involves so many of MCTI's specialties. We're pleased that this new customer recognizes our capabilities, reliability, leadership and expertise in airborne and ground-station flight test telemetry systems."

Headquartered in Alexandria, Virginia, Microdyne Corporation is a diversified technology and services company. Its MCTI subsidiary is a leading global developer, manufacturer, service and system provider of telemetry, remote monitoring and signal intercept equipment for various governmental, industrial and commercial applications.

Its Microdyne Outsourcing, Inc. subsidiary is a full-line provider of value-added outsourced technical support and repair services for electronic products companies.

The information in this release contains forward-looking statements that involve risks and uncertainties. Important factors that could cause actual results to differ materially include, but are not limited to the successful implementation of the agreement; worldwide economic conditions; competitive factors and pricing pressures.

Microdyne Corporation's shares are traded on the Nasdaq National Market System under the stock symbol MCDY. For additional information on the company, visit the Web site at www.microdyne.com.