News Release

Merrimac Reports Profitable First Quarter 2004 Results

WEST CALDWELL, N.J. May 17, 2004: 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 2004.

Sales for the first quarter of 2004 were $7,648,000, which was a first quarter Company sales record, and a 17.4 percent increase compared to first quarter of 2003 sales of $6,512,000. First quarter 2004 sales increased due to an improvement in orders received during the first quarter and higher beginning backlog going into the first quarter.

Operating income in the first quarter totaled $322,000 compared to an operating loss of $477,000 recorded for the first quarter of 2003. Operating results for the first quarter improved as a result of increased sales and improved product mix, improved facilities utilization and the favorable impact from cost management initiatives instituted during 2003.

Net income for the first quarter of 2004 was $231,000 compared to a net loss of $455,000 for the first quarter of 2003. Net income per share was $.07 for the first quarter of 2004, compared to a net loss per share of $.15 reported for the first quarter of 2003.

The backlog at the end of the first quarter of 2004 was $13.4 million, an increase of $1.0 million or approximately 7.8 percent compared to the backlog of $12.4 million at year-end 2003 and an increase of $1.7 million or 14.5 percent when compared to the backlog of $11.7 million at the end of the first quarter of 2003. Orders received during the first quarter of 2004 totaled $8.7 million and were approximately 13.6 percent above first quarter 2004 sales.

Chairman and CEO Mason N. Carter commented, "We are pleased with record first quarter sales and the resulting performance, in this, our 50th Anniversary Year. Operating improvements and greater factory utilization produced increased profitability for the second consecutive quarter. We are well-positioned to provide solid customer value through total integrated packaging solutions."

Investors are invited to participate in the financial results conference call on Monday May 17, 2004 at 4:15 p.m. (Eastern) by dialing 1-800-915-4836 (for International callers: 1-973-317-5319) ten minutes prior to the scheduled start time, and reference the Merrimac Industries first quarter 2004 conference call. For those unable to participate, a replay will be available for seven days by dialing 1-800-428-6051, or 1-973-709-2089 for international callers, passcode number 356344.

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

http://www.firstcallevents.com/service/ajwz406793022gf12.html

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

Celebrating its 50th anniversary, Merrimac Industries, Inc. is a leader in the design and manufacture of Multi-Mix PICO™ RF Microwave components, assemblies and micro-multifunction modules (MMFM), serving the wireless telecommunications industry worldwide with enabling technologies for space, defense and commercial applications. 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. The Multi-Mix® process for microwave, multilayer integrated MMFM circuitry is a patented method developed by 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 facilities are registered under ISO 9000, an internationally developed set of quality criteria for manufacturing operations.

Merrimac Industries, Inc. and its subsidiary Filtran Microcircuits Inc., are located in West Caldwell, NJ, San Jose, Costa Rica, and Ottawa, Ontario, Canada, and have approximately 230 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 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; 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 and product obsolescence, as well as other risks and uncertainties, including but not limited to those 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

Merrimac Industries, Inc.
Condensed Consolidated Balance Sheets

			April 3, 2004 (Unaudited)	January 3, 2004
ASSETS
Current assets:
Cash and cash equivalents			$ 1,628,000	$ 453,000
Income tax refunds receivable			128,000	136,000
Accounts receivable			5,704,000	6,299,000
Inventories			3,217,000	3,188,000
Other current assets			453,000	482,000
Deferred tax assets			1,055,000	1,055,000
Total current assets	12,185,000			11,613,000
Property, plant and equipment, net			16,722,000	17,222,000
Restricted cash		1,500,000		1,500,000
Other assets		819,000		854,000
Deferred tax assets, non-current			564,000	573,000
Goodwill			3,053,000	3,123,000
Total Assets			$34,843,000	34,885,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Current portion of long-term debt			$878,000	$954,000
Other current liabilities			4,037,000	3,341,000
Total current liabilities			4,915,000	4,295,000
Long-term debt, net of current portion			3,441,000	4,208,000
Deferred compensation			80,000	89,000
Deferred liabilities			44,000	48,000
Deferred tax liabilities	1,403,000			1,407,000
Total liabilities			9,883,000	10,047,000
Stockholders' equity		24,960,000		24,838,000
Total Liabilities and Stockholders' Equity			$34,843,000	34,885,000