For Immediate Release - April 17, 1996

REDWOOD CITY, CALIFORNIA - CALIFORNIA MICROWAVE, INC. (Nasdaq National Market:CMIC) reported a 78% decrease in net income to $1.3 million, or fully diluted earnings per share of $.08, on an 18% decrease in sales to $100.1 million for its fiscal year 1996 third quarter ended March 31, 1996. Last year's third-quarter net income was $6.0 million, or $.36 per share fully diluted, on sales of $121.9 million. The company's third-quarter results reflect lower-than-projected bookings and related sales in its wireless communications business, and are in line with California Microwave's March 25, 1996, announcement. For the nine months, net income decreased 41% to $10.1 million, or fully diluted earnings per share of $.62, on a 7% decrease in sales to $332.1 million. New orders booked for the third quarter declined 23% to $90.4 million compared to last year's $117.6 million; period-end backlog decreased 23% to $206 million, nearly all of which is expected to be delivered within the next 12 months. Wireless communications products accounted for 46% of orders and 40% of sales, while satellite systems and products represented 40% of orders and 40% of sales. International orders and sales were 37% and 45%, respectively. R&D, Gross Margin Constant Research and development expenses of 8% of total sales in the third quarter were slightly higher than the company's stated goal of 6% to 7%. It is expected that at year-end, R&D will fall within the company's goal. California Microwave reported gross margin of 30% for the third quarter. In May 1995, California Microwave merged with Microwave Networks Incorporated (MNI), a microwave radio company. The merger was accounted for as a pooling of interests, and all financial information has been restated to include MNI. California Microwave, Inc. is the number one U.S. supplier of microwave radios and telecommunications satellite earth stations used in wireless communications. All of the company's commercial wireless and satellite communications operations are fully certified to the ISO 9001 quality standard. California Microwave operates facilities in seven states and sells into more than 110 countries. Its strategy calls for significant expansion in the wireless area.