Merrimac Second Quarter 1997 Sales Increase

WEST CALDWELL, NJ (July 8, 1997) - Merrimac Industries (AMEX: MRM) is pleased to announce that second quarter 1997 sales of $4,986,000 represent both a record for the quarter and an increase of 27% over the second quarter of the prior year of $3,926,000. Sales for the six months were $9,261,000, which is also a record, an increase of 30% over prior year sales of $7,113,000.

President and CEO Mason N. Carter commented: "Increased sales volume for comparable quarterly periods is now the established benchmark. I am pleased that for the past three quarters the Merrimac Team has shipped over $13.3 million, which approximates the total sales revenue for each of the past four fiscal years. The sales order-booking rate is approaching $16 million for the same nine months or 20% above the current rate of shipments. The performance of our co-workers indicates their acceptance of the challenge that was issued six months ago. Their reward is a first of other potential goal-oriented periodic bonuses from the Company."

The backlog at the end of the second quarter of $9.7 million is 18% above the year-end 1996 backlog of $8.2 million and 45% higher than the second quarter backlog of $6.6 million posted in 1996. Orders for Merrimac products continue to be strong for the third quarter.

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 160 employees in the design and manufacture of high-performance components and subsystems for communications, defense and aerospace 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