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MICROWAVE LABORATORIES, INC. AGREEMENT IN PRINCIPLE REACHED

 RALEIGH, N.C., April 28 /PRNewswire/ -- Microwave Laboratories, Inc. (NASDAQ: MWVL) announced that it has reached an agreement in principle with the United States government to settle potential civil claims by the government against the company, its present or former officers or directors, shareholders, agents or employees arising from the company's failure to conduct certain life testing on one of its traveling wave tubes (TWTs) and its alleged failure to conduct certain additional tests on other TWTs, solid state oscillators and transmitters as required under contracts with the Department of Defense ("DOD").
 The company has manufactured TWTs under contracts with DOD since the early 1980s. The TWTs are a principal component of the radar-jamming system used on the U.S. Navy's EA-6B aircraft. In 1989, DOD admitted the company into DOD's Voluntary Disclosure Program following a disclosure by the company of the failure to test one of its TWTs in 1983. Following that disclosure, the government began an investigation of the company, which the company in September of 1992 learned was widened to include alleged false testing matters involving other TWTs, solid state oscillators and transmitters.
 Under the terms of the proposed settlement, the company will be required to pay to the government $5,000 in 1993. Thereafter, the company will make further payments that will total not less than $245,000 nor more than $525,000 over a period of four years, based upon quarterly profits. A substantial portion of the settlement amount will be secured by a lien on the company's inventory and equipment.
 The company believes that a definitive settlement agreement with the government as outlined above will be executed within the next 10 days. Management is pleased that this issue will finally be resolved under terms that will allow the company to compensate the government over a reasonable period of time based upon the future profits of the company.
 -0- 4/28/93
 /CONTACT: Richard Garard, Microwave Laboratories, Inc., 919-781-4260/
 (MWVL)


CO: Microwave Laboratories, Inc. ST: North Carolina IN: ARO SU:

SB -- CH017 -- 2301 04/28/93 17:18 EDT
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Publication:PR Newswire
Date:Apr 28, 1993
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