For Immediate Release - October 15th, 1997

REDWOOD CITY, CALIFORNIA - CALIFORNIA MICROWAVE, INC. (Nasdaq National Market: CMIC) today reported results from continuing operations for its fiscal 1998 first quarter ended September 30, 1997. Continuing operations for both periods presented exclude the operating results of Microwave Networks (MN) and Satellite Transmission Systems (STS) which are being divested. First-quarter income from continuing operations was $2.3 million, or $.14 per share, on sales of $64.4 million, compared to income from continuing operations of $990,000 or $.06 per share, on sales of $61.8 million reported for last year's first quarter. New orders booked in the first quarter declined 6% to $55.3 million compared to $58.8 million for the comparable period last year. All of this quarter's decline in new orders was in the company's Information Collection and Communications business area, in which the receipt of new orders tends to be uneven. Orders for satellite communications equipment increased by 10%, due largely to the successful introduction of new products. Backlog at September 30, 1997, stood at $81.9 million, compared to $94.1 million recorded at September 30, 1996. Creating Value Through Corporate Governance California Microwave believes that greater shareholder value can result when shareholder and management interests are in alignment. In September, California Microwave's board of directors adopted corporate governance guidelines, which include requirements for substantial stock ownership by the company's management and its board members and vesting for stock options tied to stock price performance. In this regard, the company's September 1997 option grants vest in four equal increments subject to the company's stock reaching prices ranging from $25 to $43 per share, or five years from the grant date. A complete description of the guidelines is included in California Microwave's October 3, 1997, proxy statement, which has been filed electronically on the SEC's EDGAR data base and can be found on the SEC Web site. Chief Technology Officer Expert in Telecom and Technology Strategy During the quarter, California Microwave announced the appointment of Dr. Daniel L. Scharre to the new position of vice president and chief technology officer, reporting directly to Frederick D. Lawrence, chairman and chief executive officer. Dr. Scharre's areas of technical expertise include satellite and wireless communications, application software development, network management and data security. He has 15 years of management experience in the telecommunications and aerospace industries. His experience in developing technology strategies will be instrumental in the formulation of the company-wide, long-term strategy which is in process at California Microwave. New Satellite Products Introduced During the first quarter, the company's EFData division introduced three significant new satellite communications products-the K2 Ku-band satellite terminal for emerging applications such as Distance Learning; the SDM-2020 high performance video demodulator for digital video broadcasting and digital satellite news gathering (DSNG), and the V2200 dual C-and Ku-band satellite converter system for DSNG and disaster recovery communications. 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. The company's six divisions participate in point-to-point and point-to-multipoint data transmission markets. These divisions are summarized below. EFData: satellite communications modems, transceivers, and network management products for telecommunications providers Microwave Radio Communications (MRC): analog and digital microwave radios for portable electronic news gathering and studio-to-transmitter video broadcast applications Microwave Data Systems (MDS): radios for remote gathering and transmitting of data for private network operators such as utilities, oil companies and lotteries Airborne Systems Integration (ASI): surveillance aircraft that collect and interpret data for government and commercial customers Government Electronics Division (GED): data communications messaging systems Services Division (SD): satellite-based services for data, voice, video transmission, data broadcast and Internet access

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

	Three Months Ended September 30
	1997	1996	% Change
Net Sales	$ 64,427	$ 61,777	+ 4
Cost of products sold	43,924	43,500	+ 1
Gross margin	20,503	18,277	+ 12
Expenses: Research and development	4,630	4,686	- 1
Marketing and administration	10,804	10,567	+ 2
Amortization of intangible assets	344	345	-
Total expenses	15,778	15,598	+ 1
Operating income	4,725	2,679	+ 76
Interest (expense) net	(1,113)	(1,332)	- 16
Income from continuing operations    before income taxes	3,612	1,347	+168
Provision for income taxes	1,300	357	+264
Income from continuing operations	2,312	990	+134
Loss from discontinued operations	--	(2,863)	-
Net income (loss)	$ 2,312	$ (1,873)	NM
Per share Income from    continuing operations	$ .14	$ .06	+133
Discontinued operations	-	(.18)
Net income	$ .14	$ (.12)	NM
Average shares	16,495	16,133	+ 2
Average shares and equivalents    (Thousands)	16,814	16,229	+ 4
Bookings	$ 55,271	$ 58,812	- 6
Backlog	81,926	94,143	- 13

CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)

	September 30 1997	June 30 1997
Assets:
Cash and cash equivalents	$ 2,132	$ 4,974
Receivables	44,794	35,701
Inventories	47,553	50,353
Income tax refunds    and deferred tax assets	24,406	35,855
Net assets of    discontinued businesses	78,127	79,656
Property, plant and    equipment (net)	24,412	22,812
Intangible assets	29,144	29,488
Other assets	7,786	7,534
	$ 258,354	$ 266,373
Liabilities and stockholders'    equity
Current liabilities	$ 66,705	$ 72,058
Long-term liabilities	70,253	76,291
Stockholders' equity	121,396	118,024
	$ 258,354	$ 266,373

Bookings and Sales by Product and Market Areas
(in millions)

	FY98 Q1	FY97 Q1	% Change	% of FY98
BOOKINGS
Satellite Communications	$ 27.8	$ 25.3	+ 10	50
Information Collection and    Communications	8.2	14.8	- 45	15
Radio Products	19.3	18.7	+ 3	35
Total	$ 55.3	$ 58.8	- 6	100
US Government	$ 14.1	$ 22.6	- 38	26
US Commercial	22.3	17.8	+ 25	40
International	18.9	18.4	+ 3	34
Total	$ 55.3	$ 58.8	- 6	100
SALES
Satellite Communications	$ 24.4	$ 19.6	+ 25	38
Information Collection and    Communications	21.3	23.6	- 10	33
Radio Products	18.7	18.6	+ 1	29
Total	$ 64.4	$ 61.8	+ 4	100
US Government	$ 25.5	$ 28.0	- 9	40
US Commercial	18.9	18.2	+ 4	29
International	20.0	15.6	+ 28	31
Total	$ 64.4	$ 61.8	+ 4	100

For More Information Contact:

Stephanie M. Day Vice President Corporate Communications (415) 596-6629

Investor Information Line: (Toll-free) 1-888-225-6789 http://www.calmike.com.

Deborah Passik William Dunk Partners, Inc. (919) 929-4100

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