News Release

Merrimac Second Quarter and Six Months 1997 Earnings Increase on Record Sales; Backlog is Up; Dividend Declared

WEST CALDWELL, NJ (July 27, 1997) - Merrimac Industries, Inc. (AMEX: MRM) announces results for the second quarter and six months of 1997, reflecting solid increases in earnings on record sales volume and a rising backlog.

Second quarter 1997 net income per share increased to $.24 per share or 20% compared to the second quarter of the prior year. Net income increased 21% to $378,000 for the second quarter of 1997 compared to 1996, resulting from sales of $4,986,000, which increased 27% over the second quarter of the prior year of $3,926,000.

For the first six months of 1997, net income per share increased to $.42 per share or 20% compared to the prior year. Net income increased 16% to $656,000 compared to 1996, resulting from sales of $9,261,000, which increased 30% over prior year six-month sales of $7,113,000. The number of weighted average common shares outstanding was reduced by 38,000 shares primarily from common stock repurchases during 1996, partly offset by the dilutive effect of stock options this year.

Comparison of the backlog for the end of the second quarter of 1997 of $9.7 million to that of the second quarter of the prior year of $6.6 million reflects a 47% increase in backlog, and is 18% above year-end 1996. Orders are expected to continue to be strong for Merrimac products in the third quarter.

Chairman and CEO Mason N. Carter commented: "Record sales volume for the quarter and six months reflects the outstanding accomplishments of the Merrimac Team effort. Our process improvement initiatives, customer service focus and reduction of total-cycle-time to market are becoming effective competitive weapons. Net income increased even though we funded important infrastructure changes and product development. In the last six months, seven new products have been developed and commercialized or are in the process of being commercialized.

"Trailing nine-month sales of $13.3 million approaches the annual sales levels for each of the past four fiscal years. Our current high rate of shipments is exceeded by the sales order booking rate by 20%. There are many opportunities and challenges to optimize as we move towards our Goal of Profitable Growth."

The Board of Directors declared a cash dividend of $.10 per share on its Common Stock, payable September 19, 1997 to stockholders of record on September 5, 1997.

The statements in this news release include forward-looking statements based on current management expectations and are subject to risks and uncertainties. Factors that could cause future results to differ from these expectations include general economic and industry conditions, competitive products and pricing pressures, risks relating to governmental regulatory actions in communications and defense programs, and inventory risks due to technological innovation. Additional factors to which the Company's performance is subject are described in the Company's reports filed with the Securities and Exchange Commission.

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. located in West Caldwell, NJ employs 130 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