Merrimac Receives Defense Satellite Contract from Boeing

WEST CALDWELL, N.J., October 25, 2001: Merrimac Industries, Inc. (AMEX: MRM), a leader in the design and manufacture of RF Microwave components, assemblies and Micro-Multifunction Modules (MMFM®), announced today that it was awarded a contract which is estimated to reach $1.2 million from The Boeing Company (NYSE: BA) Navigation Systems Division, to design, develop and manufacture RF components and subsystems for the redesigned GPS Block IIF program.

Boeing was awarded a long-term contract valued at approximately $1.3 billion by the U.S. Air Force Space & Missile Systems Center to provide the next generation GPS satellite-based radio navigation system. This space-based system is to be operated by the U.S. Department of Defense. The system permits land, sea and airborne users to instantaneously determine their three-dimensional position, velocity and time, 24 hours a day, under all weather conditions anywhere in the world.

Mason N. Carter, Chairman and CEO commented, "This contract clearly illustrates our strong competency of providing innovative, complex, space qualified Total Integrated Packaging Solutions^TM to major defense satellite communication companies. We have a long working relationship with Boeing, in supplying space, defense and commercial aircraft components. Our design provides a creative, value solution based upon forty plus years of RF microwave component/subsystem design and manufacturing process expertise.

"Merrimac was selected to participate on the GPS IIF upgrade program because of our unique ability to provide low insertion loss, lightweight, high-power RF and microwave components. As part of this contract, Merrimac will provide high-power beam forming networks designed to interface directly with the L-Band antenna of the spacecraft. Since this beam forming network interfaces directly to the antenna system, insertion loss and the ability to handle the high transmitter power levels are critical design parameters. The beamformer network will consist of multi-port power dividers of various configurations and quadrature hybrid dividers."

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About The Boeing Company

Boeing is the world's leading manufacturer of commercial communications satellites, and is also a major provider of space systems, satellites, and payloads for national defense, science and environmental applications.

The Boeing Company is the largest aerospace company in the world and the United States leading exporter. It is NASA's largest contractor and the largest manufacturer of commercial jetliners and military aircraft. The company's capabilities in aerospace also include rotorcraft, electronic and defense systems, missiles, rocket engines, launch vehicles, satellites, and advanced information and communication systems. The company has an extensive global reach with customers in 145 countries.

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^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 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., 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 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 www.merrimacind.com and 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: 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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Contact:

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