Microlog Renews Line of Credit for $1.0 Million.

Business Editors/Hi-Tech Writers

GERMANTOWN, Md.--(BUSINESS WIRE)--Feb. 13, 2001

MICROLOG CORPORATION (NASDAQ:MLOG) announced today that it has renewed and amended its line of credit agreement with Silicon Valley Bank.

The line of credit allows the Company to borrow as much as 75% of its eligible receivables up to $1.0 million. Because the Company had not drawn down on the existing line, which allowed the Company to borrow as much as 75% of its eligible receivables up to $2.0 million, the Company believes that the amended line provides sufficient funds and terms that are more appropriate for its current business plans.

The term of the line is for one year and is secured by all of the Company's assets. "Renewing our banking line of credit is a significant event and we are comfortable with a $1.0 million line at this time. We are also very pleased with our banking partner, Silicon Valley Bank, and look forward to a long, continuing relationship with them," stated Mr. Kirk Isenbart, Microlog's Controller and Principal Accounting Officer.

"This continued relationship with Microlog compliments our high technology portfolio," said Mr. John Atanasoff, Vice President of Silicon Valley Bank. "We look forward to working with Microlog now and in the future."

Silicon Valley Bank serves emerging growth and middle-market companies in targeted niches, focusing on technology life sciences, while also addressing other specific industries in which it can provide a higher level of service and better manage credit through specialization and focus.

The bank operates throughout the Silicon Valley: Santa Clara, Palo Alto and Sand Hill, the center of the venture capital community in California. Other regional offices within California include Irvine, Los Angeles, Napa Valley, San Diego, San Francisco, Santa Barbara, and Sonoma. Office locations outside of California include: Phoenix, Arizona; Boulder, Colorado; West Palm Beach, Florida; Atlanta, Georgia; Chicago, Illinois; Boston, Massachusetts; Minneapolis, Minnesota; Durham, North Carolina; Portland, Oregon; Philadelphia, Pennsylvania; Austin, Texas; Dallas, Texas; Northern Virginia; and Seattle, Washington. More information on the bank can be found at www.svb.com.

Microlog Corporation designs software applications that enhance the productivity of the customer contact center experience, as well as providing consultation on a variety of system integration options. The Company's professional services encompass the migration of e-commerce into the traditional call center environment by Web enablement.

Microlog's award winning products support this Web enablement, as well as supporting all inbound and outbound media, telephone, email, fax, and Web for contact centers. Other services offered by Microlog include: technology assessment; project management; application and software development; system integration; telephony integration; installation; system administration and quality assurance.

For additional information, call 301/540-5500 or visit our Web site at www.mlog.com.