Merrimac Awarded $4.3 Million Five-Year Multi-Mix® Contract From ITT Corporation

WEST CALDWELL, N.J., October 31, 2006: Merrimac Industries, Inc. (AMEX: MRM), today announced that it has received a contract that could reach a maximum value of $4.3 million over its five-year term from ITT Corporation (NYSE: ITT) to continue to provide a sophisticated Multi-Mix® multilayer filter assembly for use in an Airborne Electronic Countermeasures (ECM) application. The initial order placed on this contract is valued at $708,000 and is scheduled to be recognized during 2007. Under the terms of this contract, ITT will be able to order varying numbers of filter assemblies to support its Department of Defense contract managed by ITT’s Electronic Systems Division.

Chairman and CEO Mason N. Carter commented, “Merrimac designed these Multi-Mix® filter assemblies and has been supplying these filter assemblies to ITT for nine years. We are pleased to continue our long-term relationship with ITT in supporting their future requirements. Initially, we provided ITT with an innovative and cost effective Multi-Mix® 3D multilayer solution that exceeded their expectations. Through continuous process improvements, Merrimac has been able to provide ITT substantial reductions in size, weight, bill of materials (BOM) and total cost savings for this mission critical airborne application.”

ITT Electronic Systems is a leading supplier of information and electronic warfare (EW) technologies, systems and services that enable mission success and survivability for a broad range of military aircraft. Its Gilfillan radar systems provide state-of-the-art air defense, surveillance, multifunction and air traffic control radar systems for U.S. and international land and maritime applications.

About Merrimac

Merrimac Industries, Inc. is a leader in the design and manufacture of RF Microwave signal processing components, subsystem assemblies, and Multi-Mix® micro-multifunction modules (MMFM®), for the worldwide Defense, Satellite Communications (Satcom), Commercial Wireless and Homeland Security market segments. 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. Multi-Mix® MMFM® provides a patented and novel packaging technology that employs a platform modular architecture strategy that incorporates embedded semiconductor devices, MMICs, etched resistors, passive circuit elements and plated-through via holes to form a three-dimensional integrated module used in High Power, High Frequency and High Performance mission-critical applications. Merrimac Industries facilities are registered under ISO 9001:2000, an internationally developed set of quality criteria for manufacturing operations.

Merrimac Industries, Inc. has facilities located in West Caldwell, NJ, San Jose, Costa Rica and Ottawa, Ontario, Canada, and has approximately 230 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®, System In A Package®, SIP® and Total Integrated Packaging Solutions® are registered trademarks of Merrimac Industries, Inc. For more information about Merrimac Industries, Inc. and its Canadian subsidiary Filtran Microcircuits Inc., please visit http://www.merrimacind.com and http://www.filtranmicro.com .

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