Signal Technology Awarded Initial AMRAAM Missile Contract; Ten-year Market Potential is 5,000 AMRAAM Surface-launched Missiles.

Business Editors

DANVERS, Mass.--(BUSINESS WIRE)--May 1, 2003

Signal Technology Corporation (Nasdaq: STCO), today announced the receipt of a contract to produce oscillators for the AMRAAM platform. The award is valued at $327,000.

Signal Technology's oscillators are key to performing the target acquisition and tracking in very sensitive and harsh-environment applications. AMRAAM is a software-driven, radar-guided missile that gives pilots the ability to "launch and leave" and to engage multiple targets during a single mission. AMRAAM is fully operational on the F-15, F-16, F/A-18, the German F4F, the U.K. Sea Harrier, Swedish JA-37 Viggen and the JAS-39 Gripen. It is currently being integrated on the F/A-22, Eurofighter, Harrier II Plus, Tornado and the Joint Strike Fighter. AMRAAM has also been adapted to a surface-to-air role for air defense and is operational in Norway as the Norwegian Advanced Surface-to-Air Missile System (NASAMS).

In addition, it has been demonstrated in a HAWK-AMRAAM system and on a High Mobility Multipurpose Wheeled Vehicle (HMMWV)-based system called HUMRAAM. The U.S. Marine Corps awarded a contract in 2001 to Raytheon for its version of HUMRAAM, called Complementary Low Altitude Weapons System (CLAWS), which will be introduced into operational service by 2005. The U.S. Army also is generating a requirement for a HUMRAAM system, called Surface Launch AMRAAM (SLAMRAAM). SLAMRAAM's market potential is estimated at more than 5,000 missiles during the next 10 years.

"Signal Technology designs and manufactures sophisticated products with the appropriate balance of device performance and unit cost," said Tom Casale, president of Signal Technology's Olektron Operation. "Our success in winning this oscillator contract is a result of the record we have achieved meeting or exceeding customer expectations. We look forward to continuing to deliver our customers' requirements for even more complex RF and Microwave multi-function assemblies in the future."

About Signal Technology Corporation

Signal Technology is a leader in developing state-of-the-art electronic components, subsystems and system solutions for defense and space applications. The Company manufactures a wide range of RF, microwave and millimeter wave products, power conversion products and power supplies. These devices are used in military communications networks, and systems related to electronic countermeasures, precision guidance, radar, intelligence, surveillance and reconnaissance. The Company sells its products to defense prime contractors worldwide. For further information about Signal Technology, please visit the Company's Web site at www.sigtech.com.

Safe Harbor Statement

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements made in this news release that are not historical facts contain forward-looking information that involves risks and uncertainties. These forward-looking statements include statements regarding the Company's realization of $327,000 in revenues from the existing AMRAAM contract, as well as follow-on contracts from the AMRAAM market potential estimated at more than 5,000 missiles over the next 10 years; and certain other statements identified or qualified by words such as "likely", "will", "suggests", "may", "would", "could", "should", "expects", "expected", "anticipates", "estimates", "plans", "projects", "projected", "believes", "is optimistic about", or similar expressions (and variants of such words or expressions). Important factors that may cause actual results to differ include, but are not limited to, future demand for the Company's products, risks associated with court proceedings and litigation, fluctuations in the Company's operating results, volume and timing of orders received, changes in the mix of products sold, competitive pricing pressure, the Company's ability to meet or renegotiate customer demands, the ability to anticipate changes in the market, the Company's ability to finance its operations on terms that are acceptable, the Company's ability to attract and retain qualified personnel including the Company's management, changes in the global economy, changes in regulatory processes, the dependence on certain key customers (including the U.S. government), the Company's ability to realize sufficient margins on sales of its products, the availability and timing of funding for the Company's current products and the development of future products and other risks and uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings. Signal Technology Corporation assumes, subject to applicable law, no obligation to update the information included in this news release.