Merrimac Provides Mid-Year 2001 Update with Sales and Backlog Records Set

WEST CALDWELL, NJ (July 3, 2001) - Merrimac Industries, Inc. (AMEX: MRM), a leader in the design and manufacture of RF Microwave components, assemblies and Micro-Multifunction (MMFM®) Modules, today announced preliminary figures which reflect records for both sales and backlog, and strong order input for the first half of 2001.

First half 2001 sales of approximately $12,900,000 increased by 31 percent compared to first half 2000 sales of $9,861,000. Orders of $14,500,000 received during the first half of 2001 exceeded the sales level by 12 percent.

Chairman and CEO Mason N. Carter commented, "We begin the second half of 2001 with a record backlog of $12.2 million, 13 percent higher compared to a $10.8 million backlog at the same time last year, with a positive book-to-bill ratio. These positive sales, orders and backlog levels have been achieved despite the industry-wide slowdown in wireless-related products. As a result, the 3G-infrastructure order anticipated for the second quarter is now expected to be received later this year. Orders for millimeter wave applications at Filtran Microcircuits are also somewhat behind plan due to the wireless industry slowdown.

"Our product development reinvestment levels have increased and we should be well positioned with exciting new products as the wireless market rebounds. Beyond wireless there are other market development initiatives for which we have received very positive feedback. Our Multi-Mix® products being performance-tested in missile defense applications are showing outstanding results. Our new standard Multi-Mix® vector modulator introduced at a recent trade show has been positively received by customers."

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 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., with locations in West Caldwell, NJ, San Jose, Costa Rica and Ottawa, Ontario, Canada, have approximately 240 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 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: 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; the risk that the Company will not be able to continue to raise sufficient capital to expand its operations as currently contemplated by its business strategy; risks relating to governmental regulatory actions in communications and defense programs; risks associated with demand for and market acceptance of existing and newly developed products; 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.

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Contacts

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