For Immediate Release - AUGUST 13TH, 1997

REDWOOD CITY, CALIFORNIA - CALIFORNIA MICROWAVE, INC. (Nasdaq National Market: CMIC) today reported results from continuing operations for its fiscal year ended June 30, 1997. Continuing operations for all periods presented exclude the operating results of Microwave Networks (MN) and Satellite Transmission Systems (STS) which are being divested. Fiscal 1997 income from continuing operations was $2.6 million, or $.16 per share, on sales of $254.2 million, compared to income from continuing operations of $13.4 million, or $.82 per share, on sales of $240 million in fiscal 1996. Results of continuing operations include $4.8 million (net of tax) of write-downs and other charges that were announced in California Microwave's second-quarter release of operating results. New orders booked in fiscal 1997 totaled $248.1 million compared to $217.5 million for last year. Backlog at June 30, 1997, stood at $91.1 million (95% of which is expected to be delivered over the next 12 months), compared to $97.1 million recorded at the end of fiscal 1996. Fiscal 1997 fourth quarter results showed income from continuing operations of $2.6 million, or $.16 per share, on sales of $71.1 million, compared to income from continuing operations of $2.8 million, or $.17 per share, on sales of $63.8 million reported in 1996. New orders booked in the fourth quarter of 1997 totaled $42.3 million compared to $50.6 million reported in the prior year; a break-down of bookings and sales by product and market areas is attached. The company expects to receive a tax refund of approximately $10 million early in fiscal 1998 due to tax-loss carryback provisions. Discontinued Operations In June, 1997, California Microwave announced the planned divestiture of MN and STS. The losses (net of tax) of MN and STS were $26.1 million for the fourth quarter and $59.3 million for the year. Included in the discontinued operations results for the quarter and year ended June 30, 1997, are $14.4 million (net of tax) and $8.3 million (net of tax), respectively, for the write-off of the unamortized balance of goodwill and for the estimated losses, fees and expenses associated with the divestiture process. Also included in the discontinued operations results for the year are $26.6 million (net of tax) of write-downs, restructuring charges and other charges that were announced in the company's second-quarter release of operating results. Lawrence New CEO: Global Telecom Operating Experience On July 17, after an extensive search process, California Microwave appointed Frederick D. Lawrence chairman of the board, chief executive officer and president. Lawrence has 27 years operating experience in telecommunications. His previous experiences at ComStream and ADC Telecommunications bring to California Microwave global experience in both satellite and terrestrial networks and products. According to Lawrence, "I joined California Microwave because of the strength and potential of its continuing businesses. Our near-term focus will be on operationally strengthening the business, moving from our business review to execution. This means we will be giving high priority to margin improvement and product development, while simultaneously developing a comprehensive California Microwave strategic thrust." Focus on Market Leaders In December 1996, California Microwave's board of directors initiated a comprehensive business review that culminated in a decision to focus on maintaining and expanding product areas where the company has leading market share positions and high profit potential. Retained businesses include satellite communications and up-link services (EFData and Services divisions), terrestrial video and data radio (Microwave Radio Communications and Microwave Data Systems divisions), and information collection and communications systems (Airborne Systems Integration and Government Electronics divisions). These six remaining divisions all participate in point-to-point and point-to-multipoint data transmission markets. Accelerated Product Development New product development is key to maintaining California Microwave's leading market share positions. During fiscal 1997, the company introduced a number of significant new products. Examples of application-specific products developed to meet certain market needs follow. The rapid transition to digital television requires new products to produce, record, transport, and broadcast high-definition digital television programs. In the fourth quarter of its 1997 fiscal year, the company's Microwave Radio Communications division introduced and installed its first 13-GHz digital video microwave radio system for a major network studio-to-transmitter link in New York City. In addition to news broadcasters delivering digital television signals via microwave radio, direct-to-home digital television is being transmitted via satellite communications. In response to this new market development, California Microwave's EF Data division introduced a new modem designed for the delivery of compressed digital television over satellite. While the modem is currently used for transmitting digital TV in direct-to-home and satellite news gathering applications, in the future it will transmit new high definition TV over satellite. During the year, EF Data completed an intensive development project to produce an application-specific integrated circuit-based (ASIC) satellite modem. The incorporation of ASIC technology resulted in a software-configurable satellite modem; characteristics and features can be changed remotely. The product is in full production now and enjoying wide customer acceptance. The utility industry has been encountering difficulties in obtaining FCC operating licenses for wireless data collection and telemetry in a point-to-multipoint licensed service band. In response to its customers needs, the company's Microwave Data Systems (MDS) division just introduced and received FCC certification for a new high-performance, interference-resistant radio that requires no license. New Applications for Current Products In 1997, MDS won an award valued at $7 million from RACIMEC Informatica Brasileira S.A., a subsidiary of GTEC Corporation in Brazil, to provide radio system equipment for Brazil's National Lottery. Approximately 5,000 remote radios and 500 master station radios will provide reliable, cost-effective point-to-multipoint data communications to lottery terminals in areas not served by telephone lines. Delivery of the radios commenced in March 1997, with the bulk shipping in June 1997. Statements made in this press release that are not historical facts, including any statements about expectations for fiscal year 1998 and beyond are forward-looking statements, involving certain risks and uncertainties. Factors that could cause the company's actual results to differ materially from management's projections, estimates and expectations include, but are not limited to, delays in the receipt of orders or in the shipment of products, any delay in execution of the company's divestiture plan, and other factors referred to in the company's Securities and Exchange Commission filings. California Microwave, Inc. is a leading U.S. supplier of satellite earth station and microwave radio infrastructure products, installed in more than 110 countries.

CALIFORNIA MICROWAVE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share amounts)

	Years Ended June 30				Three Months Ended June 30
	1997	1996	% Change		1997	1996	% Change
Net Sales	$254,161	$ 239,964	+ 6		$ 71,071	$ 63,822	+ 11
Costs of products sold	181,404	158,042	+ 15		47,324	42,757	+ 11
Gross margin	72,757	81,922	- 11		23,747	21,065	+ 13
Expenses:
Research and development	18,214	16,608	+ 10		4,788	4,962	- 4
Marketing and administration	46,107	38,747	+ 19		12,927	10,330	+ 25
Amortization of intangible assets	1,394	1,381	+ 1		331	344	- 4
Total expenses	65,715	56,736	+ 16		18,046	15,636	+ 15
Operating income	7,042	25,186	- 72		5,701	5,429	+ 5
Interest (expense) net	(5,939)	(4,314)	+ 38		(1,879)	(1,114)	+ 69
Gain on sale of subsidiary	2,744	---			---	---
Income from continuing operations before income taxes	3,847	20,872	- 82		3,822	4,315	- 11
Provision for income taxes	1,268	7,514	- 83		1,260	1,554	- 19
Income from continuing operations	2,579	13,358	- 81		2,562	2,761	- 7
Loss from discontinued operations	(59,345)	(1,735)	NM		(26,056)	(1,218)	NM
Net income (loss)	$ (56,766)	$ 11,623	NM		$ (23,494)	$ 1,543	NM
Per share Income from continuing operations	$ .16	$ .82	- 80		$ .16	$.17	- 6
Discontinued operations	(3.66)	( .11)	NM		(1.59)	( .08)	NM
Net income	(3.50)	.72	NM		(1.44)	.10	NM
Average Shares and Equivalents (Thousands)	16,226	16,200	-		16,351	16,193	-
Bookings	$ 248,135	$ 217,461	+ 14		$ 42,261	$50,557	- 16
Backlog	91,082	97,108	- 6		91,082	97,108	- 6

CONDENSED BALANCE SHEET
(Dollars in Thousands)

	June 30 1997	June 30 1996
Assets:
Cash and cash equivalents	$4,974	$4,560
Receivables	51,374	38,576
Inventories	50,353	50,026
Income tax refunds and deferred tax assets	35,855	12,360
Net assets of discontinued businesses	79,656	126,990
Property, plant and equipment (net)	22,812	23,597
Intangible assets	29,488	30,882
Other assets	7,534	7,296
	$ 282,046	$ 294,287
Liabilities and stockholders' equity
Current liabilities	$ 85,931	$ 47,142
Long-term liabilities	78,091	77,133
Stockholders' equity	118,024	170,012
	$ 282,046	$ 294,287

CALIFORNIA MICROWAVE INC.
Fiscal 1997 Bookings and Sales by Product and Market Areas
(in millions)

	FY97	FY96	% Change	% of FY97
BOOKINGS
Satellite Communications	$ 90.7	$77.8	+ 17	37
Information collection and communications	81.0	67.9	+ 19	33
Radio Products	76.4	71.9	+ 6	30
Total	$248.1	$217.6	+ 14	100
US Government	$ 98.0	$ 84.0	+ 17	39
US Commercial	76.3	70.6	+ 8	31
International	73.8	63.0	+ 17	30
Total	$ 248.1	$217.6	+ 14	100
SALES
Satellite Communications	$ 85.7	$ 91.5	(6)	34
Information collection and communications	91.8	78.7	+ 17	36
Radio Products	76.7	69.8	+ 10	30
Total	$254.2	$240.0	+ 6	100
US Government	$ 105.7	$ 95.1	+ 11	41
US Commercial	75.6	72.2	+ 5	30
International	72.9	72.7	-	29
Total	$ 254.2	$240.0	+ 6	100