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For Immediate Release - April 8th, 1997


CALIFORNIA MICROWAVE'S MRC DIVISION AND CBS
INITIATE STRATEGIC RELATIONSHIP
DEVELOPING NEW DIGITAL VIDEO MICROWAVE SYSTEMS

Las Vegas, NV - The Microwave Radio Communications division (MRC) of California Microwave, Inc. and CBS Inc. today announced that they have entered into a strategic working relationship that includes the development of new digital video microwave products by MRC to meet CBS' specific requirements, and certain preferred customer/preferred vendor arrangements between the two companies that aim to lower product costs and speed time to market for new technologies. The agreement was announced at the National Association of Broadcasters annual meeting in Las Vegas.

"The team at Microwave Radio Communications has had a special working relationship with CBS since the 1960s," said Robert J. Morrill, President of Microwave Radio Communications. "As the U.S. television industry enters a dramatic new phase requiring digital video microwave systems, MRC is pleased to establish this new strategic relationship with CBS. By breaking down the old barriers that have tended to exist between vendors and customers, MRC and CBS are entering an exciting new age of developing the right technological solutions at the right time and price."

The partnership agreement reflects MRC's successful response to the CBS Buy Smart Initiative, which was begun in December 1996 for the purpose of optimizing material and transactional cost reduction in CBSÌ annual material spend. According to Gary P. Bennett, Director of Corporate Purchasing at CBS, "Our Buy Smart Initiative goal is to partner with suppliers offering best cost reduction opportunity consistent with high quality products. MRC was selected on the strength of its response to this program. Equally important, MRC has the resources to provide the technical support and services a broadcast company of our size and complexity requires."

The Microwave Radio Communications division of California Microwave, Inc. is a leading international manufacturer of portable and fixed microwave radio systems for analog and digital video applications. California Microwave, Inc. is a leading U.S. supplier of satellite earth station and microwave radio infrastructure products, installed in more than 110 countries.

For Further Information Contact:
Stephanie M. Day
Vice President -
Corporate Communications
(415) 596-6629
Dave Glidden
Director, Marketing Programs
Microwave Radio Communications
(508) 250-1110
dave_glidden@compuserve.com
Deborah Passik
William Dunk Partners, Inc.
(919) 929-4100

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