Stanford Telecom Receives Production Contract Valued at $12.5 Million for Satellite Control Element.

SUNNYVALE, Calif.--(BUSINESS WIRE)--March 31, 1999--

Deliverable System to Provide Communications Payload Control for

Critical Defense Department Satellite Program

Stanford Telecommunications, Inc. (Nasdaq/NMS:STII) announced today that it has received a production contract for the manufacture, test and installation of the Replacement Satellite Configuration Control Element (RSCCE), a critical component of the U.S. Army's Defense Satellite Communications System (DSCS).

Stanford Telecom's Satellite Ground System (SGS) operation developed the RSCCE under contract with the U.S. Army's Communications Electronics Command.

Under this order, Stanford Telecom will develop software enhancements and manufacture 18 RSCCE systems. The RSCCE is a telemetry, tracking and command system that controls and processes and monitors telemetry data from the DSCS III satellites. Stanford Telecom will install the RSCCEs in the U.S. Army Space Command's DSCS Operations Centers at various locations around the world. The company believes that the Government plans to award an additional RSCCE system and program spares in the next three months.

According the Ernest Dickens, vice president and general manager of the company's SGS operations, "Stanford Telecom has been performing critical services in support of DSCS for the U.S. Government for eighteen consecutive years. Award of this production contract continues the long history of Stanford Telecom's uninterrupted support to the DSCS Program."

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, continued Government funding 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.