Stanford Telecom Receives Contract Extension Valued at $9.0 Million for Support Services.

SUNNYVALE, Calif.--(BUSINESS WIRE)--Feb. 4, 1999--Stanford Telecommunications, Inc. (Nasdaq/NMS:STII) announced that the Government has exercised a one-year option to have Stanford Telecom continue its performance of critical on-site operations and maintenance support, software support, integrated logistic support, training and depot support services for the U.S. Army's DSCS program.

The effort will be performed under the DSCS Operations Control System Support Services (DOCS) contract administered by the U.S. Army Space Command.

Under this contract, Stanford Telecom will provide services and support at twelve worldwide DSCS sites over the next twelve months. Stanford Telecom has been performing critical services in support of DSCS for the U.S. Government for eighteen consecutive years. The current contract awarded to Stanford Telecom in December 1996, by the U.S. Army Space Command, includes options to extend support services through January 2002.

This year's effort is valued at approximately $9.0 million. The contract also includes provisions in which the Government can issue individual task orders for system adaptation tasks which, if fully exercised, can increase the contract value by an additional $6.0 million. System adaptation tasks often require hardware and/or software enhancements and modifications to extend the life expectancy of the system.

The DOCS is a complex collection of network management and control subsystems that are used as tools for managing DSCS ground station and space communication payload assets. The DSCS must be operated and maintained at peak efficiency and maximum availability as it is often the only means of communication with deployed forces.

Stanford Telecom designs, manufactures and markets advanced digital communications products and systems to establish or enhance communications via satellites, terrestrial wireless and cable. The Company's technical strengths include: system design, communication waveforms, modulation and demodulation techniques, ASIC design, radio frequency (RF) antennas and converters, software and firmware, asynchronous transfer mode design and advanced manufacturing techniques and processes.

Stanford Telecom was founded in 1973, maintains headquarters in Sunnyvale and employs over 1,000 people at its various locations around the United States. Stanford Telecom's Website can be found at http://www.stelhq.com.

Statements included in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. Such statements are or are based upon projections and estimates that involve risks and uncertainties such as, technology development risk, market acceptance of products currently under development and other risks detailed in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. As a result, actual results could differ materially from the forward-looking statements included herein.

Note to Editors: Stanford Telecom is a registered trademark of Stanford Telecommunications, Inc.