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For Immediate Release - December 22, 1997


CALIFORNIA MICROWAVE SETTLES
CLASS ACTION SECURITIES LAWSUIT

REDWOOD CITY, CALIFORNIA - CALIFORNIA MICROWAVE, INC. (Nasdaq National Market:CMIC) announced in November 1995, that a shareholders class action lawsuit had been filed in the United States District Court for the Northern District of California against it and certain of its former officers on behalf of persons who purchased shares of the company’s common stock between September 6, 1994, and June 29, 1995. The complaint filed in the lawsuit alleged certain violations of the federal securities laws by the company and certain of its former officers and sought damages in an unspecified amount. Although California Microwave does not believe that it or its former officers committed any securities law violations and considers the allegations made in the class action suit to be without merit, in order to avoid the expense and distraction of protracted litigation, the company has reached an agreement to settle the lawsuit. It is anticipated that the net expense of the settlement (including defense costs) to the company, which will be recorded as an expense in California Microwave’s fiscal 1998 second quarter, will amount to approximately $1.9 million, before taxes, or approximately $.07 per share.

Final settlement of the lawsuit is subject to notice to the members of the class of the proposed settlement and approval of the settlement by the Court.

California Microwave, Inc. is a leading U.S. supplier of satellite earth station and microwave radio infrastructure products and information and collection systems.

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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