For Immediate Release - October 18, 1995

SUNNYVALE, CALIFORNIA - CALIFORNIA MICROWAVE, INC. (Nasdaq National Market:CMIC) reported today that earnings and sales for its fiscal year 1996 first quarter ended September 30, 1995, were level with last year's first quarter. The company reported net income of $5.1 million, or fully diluted earnings per share of $.31, on sales of $115.8 million. Last year's first-quarter net income was $5.2 million, or $.31 per share fully diluted, on sales of $115.1 million. California Microwave reported that while new orders booked during the quarter improved substantially over its fiscal year 1995 fourth quarter's bookings of $73 million, orders were down 10% due to continued delays in the satellite communications and Personal Communications Systems (PCS) markets. New orders booked declined to $101 million from last year's $113 million; period-end backlog decreased 6% to $217 million, 90% of which is expected to be delivered within the next 12 months. Wireless communications products accounted for 40% of orders and 36% of sales, while satellite represented 38% of orders and 48% of sales. International orders and sales were 42% and 53%, respectively. 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. Gross Margin Improving Gross margin improved in the first quarter to 30% compared to last year's 28%. California Microwave believes that increasing the percentage of sales of higher-margin products and integrating its operations will continue to improve gross margins. Product sales were 65% of the total in the quarter. PCS Wireless Communications Agreements Announced During the quarter, California Microwave announced initial contract agreements with two PCS operators, Western Wireless and Pacific Bell Mobile Services, to provide engineering services and microwave radios for both the infrastructure and relocation segments of the PCS market. California Microwave's chairman and chief executive officer, Philip F. Otto, in commenting on the quarter, said, "Demand is building for microwave radios for the $700 million PCS radio opportunity in the United States. There is a pause in the market now due to regulatory issues and development work on new PCS networks. Orders are coming in, but as we've been saying since the broadband auctions were held in December 1994, we expect to see significant revenues commencing in 1996. We will be ready for the substantial requirements for radios that will be unleashed when PCS operators resolve their network engineering and relocation issues. Meanwhile, we are honing our considerable skills in producing highly reliable, superior microwave radios in high volume." California Microwave, Inc. is a leader in satellite and wireless communications. Founded in 1968, the Company operates facilities in seven states and sells into more than 110 countries. California Microwave is the leading US supplier of telecommunications satellite earth stations and microwave radios used in wireless communications. The company has shipped over 12,000 digital microwave radios for personal communications. Its strategy calls for significant expansion in the wireless area.