Merrimac Receives GPS Satellite Contract From Boeing Estimated to Reach $4.4 Million

WEST CALDWELL, N.J., September 3, 2003: Merrimac Industries, Inc. (AMEX: MRM), today announced that it was awarded a contract that is estimated to reach $4.4 million from The Boeing Company (NYSE: BA) Integrated Defense Systems, Seal Beach, California, for Beamforming Networks, and RF/ Microwave signal processing components which are utilized on Boeing's GPS (Global Positioning System) IIF Satellites.

Under a contract awarded by the U.S. Air Force, Boeing is currently building the first three GPS IIF satellites, with a potential total of up to 12 satellites. Designed for flexibility and growth, the IIF satellites will provide new capabilities, including improved anti-jam, increased accuracy, higher integrity and critical secure Operational Military codes.

Merrimac received a $663,000 order for Beamforming Networks and RF Microwave signal processing components which are to be installed on Space Vehicles 2 and 3. Additionally, Merrimac and Boeing have negotiated a contract with additional options, in support of the build and delivery of hardware for Space Vehicles 4 through 12. If all anticipated options are exercised, the contract value is estimated to be $4.4 million.

Chairman and CEO Mason N. Carter commented, "Merrimac is a strategic supplier to The Boeing Company on the U.S. Air Force GPS Block IIF, Satellite Program and we look forward to supporting the assembly of the first three satellites, with a potential for up to nine additional Boeing IIF satellites through 2006."

Robert Colvert, Boeing GPS IIF program manager commented, "Merrimac Industries is a valued member of the GPS IIF team and has provided invaluable assistance during the development effort, which led directly to their selection of a production contract. We look forward to a long relationship with Merrimac."

Mr. Carter added, "Due to nearly 35 years of space heritage, along with the positive experience, ease, cooperation and support that Boeing encountered in working with Merrimac in the engineering model and qualification stages led to the selection of Merrimac as the preferred strategic partner. Our design, process and management teams worked very closely with Boeing in meeting and exceeding Boeing's expectations. We look forward to continuing to work with Boeing over the next few years through the completion of this important defense satellite program."

About The Boeing Company

A unit of The Boeing Company, Boeing Integrated Defense Systems is one of the world's largest space and defense businesses. Headquartered in St. Louis, Boeing Integrated Defense Systems is a $25 billion business. It provides systems solutions to its global military, government and commercial customers. It is a leading provider of intelligence, surveillance and reconnaissance; the world's largest military aircraft manufacturer; the world's largest satellite manufacturer and a leading provider of space-based communications; the primary systems integrator for U.S. missile defense; NASA's largest contractor; and a global leader in launch services.

About Merrimac

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 210 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; the risk that the Company will not be able to refinance or retire its existing indebtedness or consummate alternate financing in order to fund its operations as currently contemplated by its business strategy; 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.

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