California Microwave: Lower Earnings On Lower Sales For Current Quarter

For Immediate Release - March 25, 1996

CALIFORNIA MICROWAVE: LOWER EARNINGS
ON LOWER SALES FOR CURRENT QUARTER

REDWOOD CITY, CALIFORNIA - CALIFORNIA MICROWAVE, INC. (Nasdaq National Market:CMIC) announced today that it is expecting earnings per share for its 1996 fiscal year third quarter ending March 31, 1996, to be in the range of $.05 to $.10 as a result of lower-than-projected bookings and related sales in its wireless communications business. The company indicated that based upon the level of shippable backlog expected at March 31, 1996, it is expecting earnings per share of $.90 to $1.10 for its 1996 fiscal year, ending June 30. California Microwave reported earnings of $.36 per share on sales of $122 million for its third quarter last year, and a loss of $.51 for its 1995 fiscal year due to restructuring and other charges.
Wireless Market Still Slow
According to California Microwave's chairman and chief executive officer, Philip F. Otto, "While there are growing indications that the U.S. Personal Communications Services (PCS) market is finally beginning to materialize, it has not occurred in time to contribute to our third quarter. One indicator that the PCS market is heating up is that we have booked more than $10 million dollars of orders for the U.S. microwave relocation market, which is opening up before the infrastructure portion, as we expected."
The statements made in this press release about estimated results are preliminary and based on partial information and management assumptions. Such forward-looking statements are dependent on certain risks and uncertainties, including such factors, among others, as the level of new orders received and unexpected delays in shipments during the remainder of the fiscal year and other risks detailed in the companyís Securities and Exchange Commission filings, including the S-4 registration statement of the company that became effective May 5, 1995.
California Microwave, Inc. is a leader in wireless communications. It is the number one U. S. supplier of microwave radios and telecommunications satellite earth stations used in wireless communications. California Microwaveís commercial satellite and wireless communications operations are fully certified to the ISO 9001 quality standard. The company operates facilities in seven states and sells into more than 110 countries. Its strategy calls for significant expansion in the wireless area.
For Further Information Contact:

Stephanie M. Day
Vice President
Corporate Communications
(415) 596-6629 Deborah Passik
William Dunk Partners, Inc.
(214) 960-9611