WJ Communications Announces First RFID Production Order.

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 16, 2003

WJ Communications Inc. (Nasdaq:WJCI), a leading designer and supplier of RF semiconductors and multi-chip modules, today announced that it has received its first production order for its compact RFID reader/programmer engine (SX2000) from Alien Technology Corporation (Alien) -- a leading provider of reliable, high-volume, low-cost, Electronic Product Code (EPC) compliant Radio Frequency Identification (RFID) products. SX2000 is an Auto-ID Center Class 1 EPC compliant reader operating in the 900MHz ISM band. Its full performance, low-cost and small size -- roughly the size of a PCMCIA card -- enables the realization of a wide range of portable and hand-held reader/programmer solutions including integrated RFID/barcode readers. Deliveries against this order are scheduled to commence in the current quarter.

RFID technology allows companies to efficiently locate, identify and monitor assets up and down the supply chain remotely, thereby dramatically reducing inventory costs and improving cash flow. RFID is formally coming of age, and prime movers like Wal-Mart, Gillette and the United States Department of Defense (DoD) are driving market adoption with requirements for RFID-enabled shipments. Earlier this year Wal-Mart formalized its intention that its top 100 suppliers put EPC tags on pallets and cases by Jan. 1, 2005, and Gillette has placed a 500 million piece order for Alien RFID tags. The DoD has been using RFID for all freight containers to Afghanistan and the Persian Gulf, and recently announced its requirement that all suppliers to the U.S. military use RFID. The DoD is expected to issue a final RFID policy by June 2004.

"We are starting to ramp up for production of the 915MHz SX2000 reader in support of this initial order for delivery during the fourth quarter," said James Mravca, senior vice president, strategic marketing and business development for WJ Communications. "This first order is a significant milestone and our future efforts will focus on lower cost, higher integration, flexibility and performance. WJ is working with Alien to rapidly expand our RFID product portfolio to include products for other markets like Europe and Japan."

About WJ Communications

WJ Communications Inc. is a leading RF semiconductor company focusing on the design and manufacture of high-quality devices, chip sets and multi-chip modules (MCMs) for telecommunications, RF identification (RFID) and homeland security systems worldwide. WJ's highly reliable amplifiers, mixers, RF integrated circuits (RFICs), RFID reader modules, chipsets and MCM products are used to transmit, receive and process signals that enable current and next generation wireless and wireline services. For more information visit www.wj.com or call 408-577-6200.

Auto-ID Center

The Auto-ID Center (www.autoidcenter.org), founded in 1999 and headquartered at the Massachusetts Institute of Technology (MIT), is a not-for-profit global research organization designing the technology and infrastructure for universal product identification and tracking. This includes the electronic product code (EPC) specification for inexpensive tags and agile readers, the object naming service (ONS), the product mark-up language (PML) and Savant software technology. The Auto-ID Center's work is supported by five of the world's leading research universities and almost 100 major companies worldwide. More information may be found at http://www.autoidcenter.com.

All trademarks referenced herein are used in good faith to give proper public recognition to their respective owners.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

This press release contains forward-looking statements including financial projections, statements as to the plans and objectives of management for future operations, and statements as to the Company's future economic performance, financial condition or results of operations. These forward-looking statements are not historical facts but rather are based on current expectations and our beliefs. The Company's actual results may differ materially from those projected in these forward-looking statements as a result of a number of factors including those described from time to time in the Company's filings with the Securities and Exchange Commission. Readers of this release are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to publicly update or revise the forward-looking statements contained herein to reflect changed events or circumstances after the date of this press release.