Second Quarter and Six Months Earnings Increase on Record Sales

   Second quarter 1998 sales of $5,574,000 increased 11.8% over the second quarter of the prior year of $4,986,000. Net income increased $31,000 or 8.2% to $409,000 for the second quarter of 1998 compared to 1997. Diluted net income per share was $.22, on a 7.8% increase in the number of weighted average diluted common shares outstanding, compared to the diluted per share amount of $.22 reported for the second quarter of the prior year.

   For the first six months of 1998 sales of $11,366,000 increased 22.7% over prior year six-month sales of $9,261,000. Net income increased 27.4% to $836,000 compared to $656,000 reported in the first six months of 1997, and diluted net income per share increased to $.46, up 21.1% compared to diluted net income per share of $.38 reported in the first six months of the prior year.

   The Company entered the third quarter of 1998 with a backlog of $8.0 million, a decrease of $1.7 million or 18% from the same time last year. The majority of this differential is attributable to delays in certain new satellite constellation programs, satellite manufacturers working down inventories, and the timing of certain non-satellite business. This trend in orders is not expected to be long-term. It is anticipated that for the remainder of 1998 many of the satellite programs that have been delayed may translate into orders.

   This was a strong performance for our Team with record sales and increased earnings. We continue to implement process change, strengthen our infrastructure and actively pursue new product and market opportunities. Technology reinvestment continues at a record pace more than doubling from last year. We are optimistic about the prospects for the future of our business.

   We formally announced the introduction of Multi-Mix^TM Microtechnology, a proprietary 3-dimensional microwave packaging technology, at an important industry trade show on June 10^th. We have received favorable publicity and extremely positive customer response to the new technology.

   Multi-Mix^TM is a unique packaging technology that provides for the integration of a variety of different types of functionality, and it provides customers with what they want, which is a "total integrated packaging solution". It is based on a platform strategy that provides predesigned modules that combine the benefits of standard and custom design. During this development process we have emphasized the need for technology innovation, process excellence and market focus. This successful effort provides us with an enabling technology that meets and exceeds customer requirements.

   Multi-Mix^TM coupled with a new and enhanced core products line should allow us to further penetrate the $18 billion RF Microwave market by opening up new segments of opportunity. There are many opportunities and challenges to optimize as we move towards our Goal of Profitable Growth.

   Thank you for your continued support and confidence.

Mason N. Carter
Chairman and CEO

August 6, 1998

Note: Certain statements in this news release are forward-looking statements based on current management expectations and are subject to risks and uncertainties. Factors that could cause future results to differ from these expectations include general economic and industry conditions, competitive products and pricing pressures, risks relating to governmental regulatory actions in communications and defense programs, and inventory risks due to technological innovation. Additional factors to which the Company’s performance is subject are described in the Company’s reports filed from time to time with the Securities and Exchange Commission.