News Release

Merrimac Reports First Quarter 2007 Results

WEST CALDWELL, N.J. May 14, 2007: Merrimac Industries, Inc. (AMEX: MRM), a leader in the design and manufacture of RF Microwave components, assemblies and micro-multifunction modules (MMFM®), today announced results for the first quarter of 2007.

Sales for the first quarter of 2007 were $5,424,000, a decrease of $807,000 or 12.9 percent compared to the first quarter of 2006 sales of $6,231,000. The sales decrease was due to a problem with purchased material that was utilized in certain products. The Company has evaluated the material and found the problem with the material does not affect the functionality and reliability of the products. The customers purchasing these products agreed with the Company’s conclusions. This problem did cause shipment delays of approximately $1,000,000 of products that were expected to be sold in the first quarter of 2007. Substantially all of the products impacted should be shipped during the second quarter of 2007. Gross profit for the first quarter of 2007 was $1,782,000, a decrease of $619,000 or 25.8 percent, and was 32.8 percent of sales as compared to gross profit of $2,401,000 or 38.5 percent of sales for the first quarter of 2006. Gross profit percent in the first quarter of 2007 decreased from the first quarter of 2006 due to the impact of the lower level of sales having to absorb fixed manufacturing costs.

Operating loss for the first quarter of 2007 was $(1,220,000), compared to an operating loss of $(457,000) for the first quarter of 2006. Operating loss for the first quarter of 2007 was due to the lower gross profit from the decrease in sales and higher research and development costs related to the Company’s Multi-Mix® products.

Net loss for the first quarter of 2007 was $(1,264,000) compared to a net loss of $(441,000) for the first quarter of 2006. Net loss per share was $(.41) for the first quarter of 2007, compared to net loss per share of $(.14) reported for the first quarter of 2006. Net loss for the first quarter of 2006 included a tax benefit of $35,000 or $.01 per share representing refundable Canadian provincial technology tax credits for which the Company has qualified and lower net interest expense.

Orders of $6,485,000 were received during the first quarter of 2007, an increase of $2,540,000 or 64.4 percent compared to $3,945,000 in orders received during the first quarter of 2006. Backlog increased by $1,061,000 or 8.6 percent to $13,446,000 at the end of the first quarter of 2007 compared to $12,385,000 at year-end 2006, due to the shipment delays caused by the problem with the purchased material. The book-to-bill ratio for the first quarter of 2007 was 1.20 to 1 and for the first quarter of 2006 was 0.63 to 1.

Chairman and CEO Mason N. Carter commented, “We are currently working closely with our key account customers in establishing new Multi-Mix® Solutions that may become the foundation for the next-generation of integrated modules, platforms and subassemblies.

• We received an Internal Research and Development contract (IRAD) for Multi-Mix® integrated modules from a major satellite customer. Final design and manufacture of the first space IRAD qualified assembly modules have been completed and delivered in April. We are continuing co-design efforts with our customer in developing innovative and enabling Multi-Mix® Microtechnology solutions that offer size, weight, and cost solutions. Our customer design engineers are co-designing with our design teams in offering and optimizing compelling reasons for technology adoption by their customers. These applications can be utilized for the next-generation of military satellite communications.
• We received a contract from another key account satellite customer to develop a variety of custom solutions for use in beam forming communications networks for some of the largest and most powerful satellites ever built.
• We continue our research and development investment focused on our Integrated Multi-Mix® High Power Amplifier Resource Module and continue to work on very significant developments on highly integrated radar platforms."

Mr. Carter continued, "Our financial information includes:

• Cash of $3.7 million after the repurchase in March of 238,700 shares of Merrimac Common Stock at $9.00 per share for approximately $2.2 million.
• Working capital of $10.1 million and a current ratio of 4.0 to 1.
• Research and development costs increased $139,000 for 2007 to support new Multi-Mix® products to be available later this year.
• First quarter 2007 book-to-bill ratio of 1.2 to 1."

Investors are invited to participate in the financial results conference call on Monday, May 14, 2007 at 4:15 p.m. (Eastern) by dialing 1-800-474-8920 (for International callers: 1-719-457-2727) ten minutes prior to the scheduled start time, and reference the Merrimac Industries first quarter 2007 conference call. For those unable to participate, a replay will be available for seven days by dialing 1-888-203-1112, or 1-719-457-0820 for international callers, passcode number 8993342.

This conference call will also be broadcast live over the internet by logging on to the web at this address:

http://www.videonewswire.com/event.asp?id=39841

If you are unable to participate during the live webcast, the call will be archived on the Merrimac website:
http://www.merrimacind.com

About Merrimac

Merrimac Industries, Inc. is a leader in the design and manufacture of RF Microwave signal processing components, subsystem assemblies, and Multi-Mix® micro-multifunction modules (MMFM®), for the worldwide Defense, Satellite Communications (Satcom), Commercial Wireless and Homeland Security market segments. Merrimac is focused on providing Total Integrated Packaging Solutions® with Multi-Mix® Microtechnology, a leading edge competency providing value to our customers through miniaturization and integration. Multi-Mix® MMFM® provides a patented and novel packaging technology that employs a platform modular architecture strategy that incorporates embedded semiconductor devices, MMICs, etched resistors, passive circuit elements and plated-through via holes to form a three-dimensional integrated module applicable to High Power, High Frequency and High Performance mission-critical applications. Merrimac Industries facilities are registered under ISO 9001:2000, an internationally developed set of quality criteria for manufacturing operations.

Merrimac Industries, Inc. has facilities located in West Caldwell, NJ, San Jose, Costa Rica and Ottawa, Ontario, Canada, and has approximately 210 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® for wireless applications. Merrimac (MRM) is listed on the American Stock Exchange. Multi-Mix®, Multi-Mix PICO®, MMFM® and Total Integrated Packaging Solutions® are trademarks of Merrimac Industries, Inc. For more information about Merrimac Industries, Inc. and its Canadian subsidiary Filtran Microcircuits Inc., please visit http://www.merrimacind.com and http://www.filtranmicro.com.

This press release contains statements relating to future results of the Company (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: risks associated with demand for and market acceptance of existing and newly developed products as to which the Company has made significant investments, particularly its Multi-Mix® products; the possibilities of impairment charges to the carrying value of our Multi-Mix® assets, thereby resulting in charges to our earnings; slower than anticipated penetration into the satellite communications, defense and wireless markets; failure of our Original Equipment Manufacturer, or OEM, customers to successfully incorporate our products into their systems; changes in product mix resulting in unexpected engineering and research and development costs; delays and increased costs in product development, engineering and production; reliance on a small number of significant customers; the emergence of new or stronger competitors as a result of consolidation movements in the market; the timing and market acceptance of our or our OEM customers’ new or enhanced products; general economic and industry conditions; the risk that the benefits expected from the Company’s acquisition of Filtran Microcircuits Inc. are not realized; the ability to protect proprietary information and technology; competitive products and pricing pressures; our ability and the ability of our OEM customers to keep pace with the rapid technological changes and short product life cycles in our industry and gain market acceptance for new products and technologies; foreign currency fluctuations between the U.S. and Canadian dollars; risks relating to governmental regulatory actions in communications and defense programs; and inventory risks due to technological innovation and product obsolescence, as well as other risks and uncertainties as are detailed from time to time in the Company's Securities and Exchange Commission filings. These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:

Mason N. Carter, Chairman & CEO
973.575.1300, ext. 1202
E-mail: mnc@merrimacind.com

Merrimac Industries, Inc.
Summary of Consolidated Statements of Operations
(Unaudited)

	Quarter Ended
	March 31, 2007	April 1, 2006
Net sales	$5,424,000	$6,231,000
Gross profit	1,782,000	2,401,000
Selling, general and administrative expenses	2,491,000	2,486,000
Research and development expense	511,000	372,000
Operating loss	(1,220,000)	(457,000)
Interest and other expense, net	44,000	19,000
Loss before income taxes	(1,264,000)	(476,000)
Benefit for income taxes	-	(35,000)
Net loss	(1,264,000)	(441,000)
Net loss per common share	$(.41)	$(.14)
Weighted average number of shares   outstanding	3,096,000	3,149,000

Merrimac Industries, Inc.
Condensed Consolidated Balance Sheets

			March 31, 2007 (Unaudited)	December 30, 2006 (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents			$ 3,702,000	$ 5,961,000
Accounts receivable, net			4,830,000	5,852,000
Income tax refunds receivable			99,000	99,000
Inventories			4,074,000	3,917,000
Other current assets			647,000	882,000
Deferred tax assets			10,000	10,000
Total current assets			13,362,000	16,721,000
Property, plant and equipment, net			12,862,000	12,985,000
Other assets		467,000		493,000
Deferred tax assets		557,000		552,000
Goodwill			3,545,000	3,503,000
Total Assets			$30,793,000	$34,254,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Current portion of long-term debt			$622,000	$649,000
Deferred tax liabilities			100,000	100,000
Other current liabilities			2,577,000	2,618,000
Total current liabilities			3,299,000	3,367,000
Long-term debt, net of current   portion			4,413,000	4,564,000
Deferred liabilities			44,000	38,000
Total liabilities			7,756,000	7,969,000
Stockholders' equity
Common stock		33,000		33,000
Additional paid-in capital		19,340,000		19,237,000
Retained earnings		5,336,000		6,600,000
Accumulated other comprehensive   income		1,450,000		1,389,000
Less treasury stock		(3,122,000)		(974,000)
Stockholders' equity		23,037,000		26,285,000
Total Liabilities and Stockholders' Equity			$30,793,000	$34,254,000

Merrimac Industries, Inc.
Condensed Consolidated Statements of Cash Flows