RELM Wireless Announces OEM Manufacturing Agreement for New Portable Two-Way Radios.

Business Editors

WEST MELBOURNE, Fla.--(BUSINESS WIRE)--Sept. 25, 2001

RELM Wireless Corporation, (NASDAQ: RELM) a manufacturer, developer, and distributor of wireless land mobile radio (LMR) products, today announced an OEM manufacturing agreement with Shenzhen Hyt Science & Technology Company, LTD (HYT) for the manufacture of a new family of portable two-way radios.

Under the agreement, HYT will manufacture for RELM four models of VHF and UHF portable two-way radio transceivers, and RELM will have exclusive distribution rights for these products in North, Central, and South America. The agreement is for a term of five years and its scope may be expanded to include additional products. Certain models are expected to be available beginning in the fourth quarter 2001, while the remaining models are expected to be available in the first quarter 2002.

These new models will enable RELM to expand its product offerings within the commercial, business, and industrial segments of the land mobile radio market. The new portable two-way radios will provide a low-cost yet feature-rich and reliable two-way communication alternative for customers in these markets. These products will supplement the more sophisticated portable two-way radios currently offered by RELM.

HYT is a private company located in China, which has specialized in engineering and manufacturing quality radio frequency (RF) products since 1993. HYT employs approximately 120 individuals, including 30 electronic and RF engineers.

David Storey, RELM's President and Chief Executive Officer, commented, "Our new family of portable radios will provide effective and reliable two-way communications solutions that are very affordable, a combination that is critical for commercial, business and industrial users. Our agreement also cements an important new relationship that furthers our strategy to leverage efficient, high quality, and lower-cost manufacturing capabilities worldwide. It also opens the door for the development of additional new products and possible manufacturing cost reductions on existing products."

Mr. Storey continued, "We are excited to work with an outstanding company like HYT. Having personally visited HYT's operation, I was impressed with their state-of-the-art manufacturing and technical capabilities, and high quality standards. We are looking forward to a long and mutually beneficial relationship."

For over 45 years, RELM has manufactured and marketed two-way FM business-band radios as well as high-specification public safety mobile and portable radios, repeaters and accessories, base station components and subsystems. Products are manufactured and distributed worldwide under RELM Communications, Uniden PRC and BK Radio brand names. The company maintains its headquarters in West Melbourne, Florida and can be contacted through its web site at www.relm.com or directly at 1-800-648-0947.

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and is subject to the safe-harbor created by such act. These forward-looking statements concern the Company's operations, economic performance and financial condition and are based largely on the Company's beliefs and expectations. These statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors and risks include, among others, the following: the factors described in the Company's filings with the Securities and Exchange Commission; general economic and business conditions; changes in customer preferences; competition; changes in technology; changes in business strategy; the indebtedness of the Company; quality of management, business abilities and judgment of the Company's personnel; and the availability, terms and deployment of capital. Certain of these factors and risks, as well as other risks and uncertainties are stated in more detail in the Company's Annual Report on Form 10-K. These forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.