$1 Million GPS Contract

WEST CALDWELL, NJ (January 9, 2001) - Merrimac Industries, Inc. (AMEX: MRM), a leader in the design and manufacture of RF Microwave components, assemblies and Micro-Multifunction (MMFM®) Modules, announced today that it was awarded a $1 million contract from Lockheed Martin Corporation (NYSE: LMT) for the GPs Antenna Retrofit Program. GPS (Global Positioning System) is a high-performance navigational tool used worldwide. The Global Positioning System allows any user equipped with a GPs receiver to determine velocity and worldwide position (latitude, longitude and altitude) within a few meters. Both position data and velocity are given at a precise reference time. Although originally designed as a guidance and navigational tool for the military, GPs has proven beneficial in the fields of transportation, surveying, and search and rescue operations, and has created a tremendous demand in new commercial markets. The Antenna Retrofit Program is designed to enhance the output power of older satellites for broader coverage and superior accuracy.

Mason N. Carter, Chairman & CEO of Merrimac, commented, "This contract illustrates clearly our core competency in GPs coupled with a strong heritage in satellite communications. We are proud of the members of our Key Account Team who have demonstrated our capabilities in providing value to Lockheed Martin Corporation by enhancing the power performance of their GPs system."

Increased navigational accuracy and longer autonomous satellite operation without ground control corrections will improve service for the customer and other users. The new capabilities include additional military and civilian signals, increased signal power and the ability to reprogram spacecraft signals and power while in orbit. These improvements will provide for enhanced accuracy. The proposed work will be performed at Lockheed Martin Missiles & Space Operations - Newtown, PA facility.

About Merrimac

Merrimac Industries, Inc. is a leader in the design and manufacture of RF Microwave components, assemblies and Micro-Multifunction (MMFM®) Modules serving the wireless telecommunications industry worldwide with enabling technologies for commercial applications. Merrimac is focused on providing Total Integrated Packaging Solutions^TM with Multi-Mix® Microtechnology, a leading edge competency providing value to our customers through miniaturization and integration. The Multi-Mix® process for microwave, multilayer integrated MMFM® circuits is a patented method developed at Merrimac Industries based on fluoropolymer composite substrates. The fusion bonding of multilayer structures provides a homogeneous dielectric medium for superior electrical performance at microwave frequencies. The bonded layers may incorporate embedded semiconductor devices, MMICs, etched resistors, passive circuit elements and plated-through via holes to form a three-dimensional subsystem enclosure that requires no further packaging. Merrimac Industries, Inc. is ISO 9001 certified.

Merrimac Industries, Inc. and its subsidiary Filtran Microcircuits Inc., with locations in West Caldwell, NJ, San Jose, Costa Rica and Ottawa, Ontario, Canada, have approximately 260 co-workers dedicated to the design and manufacture of signal processing components, gold plating of high frequency microstrip, bonded stripline and thick metal-backed Teflon (PTFE) micro-circuitry and subsystems providing Total Integrated Packaging Solutions^TM wireless applications. Merrimac (MRM) is listed on the American Stock Exchange. For more information about Merrimac Industries, visit its home page at www.merrimacind.com.

This press release contains statements relating to future results of Merrimac (including certain projections and business trends) that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties. These risks and uncertainties include, but are not limited to: general economic and industry conditions; slower than anticipated penetration into the satellite communications, defense and wireless markets; the risk that the benefits expected from the acquisition of Filtran Microcircuits Inc. are not realized; the ability to protect proprietary information and technology; competitive products and pricing pressures; risks relating to governmental regulatory actions in communications and defense programs; and inventory risks due to technological innovation, as well as other risks and uncertainties, including but not limited to those detailed from time to time in Merrimac's Securities and Exchange Commission filings. These forward-looking statements are made only as of the date hereof, and Merrimac undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Note: These news releases are also available on the Internet at: www.prnewswire.com.

Contacts

Mason N. Carter, Chairman and CEO,
Tel: 973.575.1300, Ext. 1202; Fax: 973.882.5989
E-mail: mnc@merrimacind.com