Merrimac Eliminates Cash Dividend to Fuel Growth

WEST CALDWELL, NJ (August 28, 1997) - Merrimac Industries, Inc. (Amex: MRM) announces that the Board of Directors, after review of its strategy for growth and relationship to its cash dividend policy, has determined to reinvest all future earnings in the Company.

Previously, on July 29, 1997, the Company announced that its Board of Directors had declared a cash dividend of $.10 per share on its Common Stock. This dividend will be paid on September 19, 1997 to stockholders of record on September 5, 1997. Merrimac Industries, Inc. has paid dividends of $.10 per share quarterly since 1994 and began paying a cash dividend in 1988.

Chairman and CEO Mason N. Carter commented: "Recent revenue growth coupled with product development, new equipment and process improvement initiatives, require that earnings and additional capital be reinvested to capitalize on market opportunities. Merrimac stockholders have recently benefited from stock price appreciation that we attribute to the revenue growth and positive operating results. We believe that by reinvesting all earnings in the Company we can continue this favorable trend."

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