News Release

Merrimac First Quarter 1998 Sales Record with Per Share Earnings Up 44%; Board Declares Ten Percent Stock Dividend

WEST CALDWELL, NJ (May 5, 1998) - Merrimac Industries, Inc (AMEX: MRM). announces results for the first quarter 1998, reflecting record quarterly sales and a solid increase in earnings. Also, the Board of Directors has declared a 10% stock dividend to stockholders of record on May 15, 1998 to be distributed, and payments for fractional shares made, on June 5, 1998.

First quarter 1998 sales of $5,793,000 increased 35% over the first quarter sales of the prior year of $4,275,000. Net income increased $150,000 or 54% to $428,000 for the first quarter of 1998 compared to $278,000 reported in 1997. Diluted net income per share was $.26, an increase of 44% compared to diluted net income per share of $.18 reported for the first quarter of last year. The diluted weighted average number of common shares outstanding for the first quarter 1998 increased by 71,000 compared to that of the first quarter of the prior year. This increase was primarily due to common stock issued from the exercise of stock options during 1997 and the increase in common stock equivalents arising from higher average stock prices during the first quarter of this year compared to the first quarter of the prior year.

The backlog at the end of the first quarter was $9.9 million, slightly above that at year-end 1997. Orders for Merrimac products during the first quarter of $6.0 million were 3% above the first quarter sales level. A comparison of the backlog at the end of the first quarter 1998 to that of the first quarter of the prior year shows a 5% increase.

Chairman and CEO Mason N. Carter commented: "I am pleased to report that sales, gross profit, operating income and net income all increased significantly, while planned product research and development spending more than tripled to over $200,000. This was a strong performance and an excellent start to the challenging year ahead. While we are optimistic that this will be a rewarding year, there is much we still must accomplish.

"During the past quarter the Merrimac Team shipped $5.8 million, complemented by an order booking of $6 million…a significant achievement. Just as meaningful and positive is progress with regard to key account customer relations, new product development and infrastructure change. Our dedicated co-workers continue to create change and deliver results.

"The Board of Directors has elected to award a 10% stock dividend to all stockholders. The Board is pleased with our operating results and has further confidence in what the Merrimac Team can achieve."

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., with locations in West Caldwell, NJ and San Jose, Costa Rica, has approximately 170 employees in the design and manufacture of high-performance components for communications, defense and aerospace markets. 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