Ericsson Invests in Merrimac

WEST CALDWELL, NJ (April 10, 2000) - Ericsson and Merrimac Industries, Inc. have made an agreement in which Ericsson has purchased 375,000 newly issued shares of Merrimac common stock, representing approximately 17.5% of Merrimac’s outstanding common stock, at a price of $9.00 per share. This agreement gives Ericsson Microelectronics priority access to Merrimac’s patent-pending Multi-Mix® Microtechnology, a new, innovative process for microwave, multilayer integrated circuits and modules to be used in present and future mobile telecom applications.

The Multi-Mix® design consists of fusion bonded multilayer structures, which permits manufacture of components and subsystems at a fraction of the size and weight of conventional microstrip and stripline products. Ericsson intends to employ the promising Multi-Mix® technology in present and future RF applications, including RF Power. Ericsson is investigating the possibility of employing Multi-Mix® technology for Bluetooth transceivers.

Mason N. Carter, Chairman and CEO of Merrimac, commented: "This commitment by Ericsson is recognition of the unique capabilities of Multi-Mix® Microtechnology for the rapidly growing wireless telecommunications market. Since Multi-Mix® packaging is versatile and allows for out-of-the-box thinking for a broad variety of solutions, our relationship with Ericsson will foster creative co-development of wireless technologies.

"We have been increasing capacity and have implemented significant operational efficiencies. We are now planning to further expand Multi-Mix® processes to accommodate higher volumes of components, assemblies and Micro-Multifunction Modules (MMFM™) that we expect this relationship will generate."

Bo Andersson, Vice President and General Manager of Ericsson Microelectronics AB, commented: "We believe that by combining Ericsson Microelectronics’ state-of-the-art wafer processing and wireless know-how with Multi-Mix® technology, we will be able to provide our customers with even more consistent and more functional RF components and modules. Potential applications include our HIT™ (High Impedance Technology) product lines as well as our industry-leading Bluetooth transceivers.

"By forming this close partnership with Merrimac we expect to speed our time to market with new and higher value products that will further demonstrate our leadership in the microelectronics industry."

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 200 co-workers in 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™ for wireless applications. Merrimac (MRM) is listed on the American Stock Exchange. Please visit Merrimac’s website at: http://www.merrimacind.com

Ericsson is the leading provider in the new telecoms world, with communications solutions that combine telecom and datacom technologies with the freedom of mobility for the user. With more than 100,000 employees in 140 countries, Ericsson simplifies communications for its customers – network operators, service providers, enterprises and consumers – the world over. Please visit Ericsson’s Press Room at: http://www.ericsson.se/pressroom

About Ericsson Microelectronics

Ericsson Microelectronics is a supplier of world class microelectronic components for wireless applications, broadband communications, fixed access and communication via fiber optics. The product portfolio also includes miniaturised DC/DC power modules for distributed power architectures. Ericsson Microelectronics, with its global design, development, manufacturing and sales network, is a leading supplier of products to meet the increasing speed, bandwidth and mobility requirements in the New Telecoms World.

For further information, please contact:

Kathy Egan, Vice President Communications, Ericsson Inc. Phone: +1 212-685-4030; E-mail: kathy.egan@ericsson.com
Tom Moller, Vice President and General Manager, Ericsson Inc., Microelectronics, Phone: + 1 408-776-0612; E-mail: tom.moller@ericsson.com
Bengt Callmer, Director of Communications, Ericsson Microelectronics AB, Phone: + 46 8 757-4689; E-mail: bengt.callmer@ericsson.com

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.

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Contacts

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