For Immediate Release - June 26, 1996

REDWOOD CITY, CALIFORNIA - CALIFORNIA MICROWAVE, INC. (Nasdaq National Market:CMIC) announced today that it has won a $1.2 million contract to supply and install digital microwave radios for the first phase of the ProMonte GSM network in the Republic of Montenegro. Helping Businesses Connect Montenegro, one of the republics of the former Yugoslavia, hopes to make it easier to conduct business in the republic by rebuilding its telecommunications infrastructure. Businesses currently incur a subscription fee of approximately US$1,000 for a connection to the fixed network, if a subscription is available at all. Business subscribers also pay 2.5 times more than private subscribers for international calls, making telephone bills extremely high for businesses with international dealings. ProMonte's GSM network, with microwave radios connecting the network instead of cables, will provide subscribers with quick, reliable, lower-cost communications. Comprehensive Products and Project Services Phase I of the installation will cover the capital city of Podgorica, two inland cities, and eight tourist towns on the coast of the Adriatic Sea. This leg of the project is expected to be completed by September 1996. The radios will be provided by the Microwave Network Systems (MNS) division of California Microwave, which offers a full line of high-performance digital radios, featuring advanced software and the latest industry technologies. In addition to the radio equipment and network management system, California Microwave is providing pre-engineering, surveys, installation, training, and maintenance support to ProMonte and its local partners. "Participating in the first GSM network in the former Yugoslavia is an exciting opportunity for California Microwave," stated James R. Gordon, Executive Vice President of Sales for MNS. "It will also allow us to play a small part in the region's economic recovery, while establishing ourselves as a quality provider in the region." ProMonte GSM is a joint venture between Telenor Invest AS, Sarantitis Group, and the PTT of Montenegro. Telenor Invest is a wholly-owned subsidiary of Telenor International, formed to capitalize on global opportunities for telecommunications development. Telenor Invest is also participating in the creation of telecommunications networks in Russia, Hungary, Lithuania, Austria, Ireland, and the United States. The Sarantitis Group is a Greek Investment company. California Microwave, Inc. is a leader in wireless communications. It is the number one U. S. supplier of microwave radios and satellite communications (satcom) products, earth stations, wireless networks and services used in wireless communications. 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

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