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For Immediate Release - December 22, 1997


CALIFORNIA MICROWAVE AGREES TO SELL
STS FOR $27 MILLION IN CASH

REDWOOD CITY, CALIFORNIA - CALIFORNIA MICROWAVE, INC. (Nasdaq National Market:CMIC) announced today that it has entered into an agreement with L-3 Communications Corporation to sell its Satellite Transmission Systems (STS) division to L-3 for $27 million in cash. It is expected that no gain or loss will be reported on this divestiture. The closing of the transaction, which is expected to occur in January 1998, is subject to certain conditions, including the obtaining of any required regulatory approvals.

Focusing Resources
According to Frederick D. Lawrence, California Microwave’s chairman and chief executive officer, "On June 3, 1997, the company announced that it would sell its Microwave Networks and Satellite Transmission Systems divisions, focusing its resources on maintaining and expanding its leading market positions in satellite, terrestrial data radio and other wireless product businesses. While the auction process continues for the divestiture of Microwave Networks, the divestiture of STS means that the company has taken a substantial step in executing against the plan we developed at that time to focus on those growing markets."

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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