News Release

Merrimac Reports Third Quarter and Six Months 1999 Results

WEST CALDWELL, NJ (November 5, 1999) - Merrimac Industries, Inc. (AMEX: MRM) today announced results for the third quarter and nine months of 1999. Third quarter 1999 sales of $5,328,000 increased 4% compared to third quarter sales of the prior year of $5,121,000. Net income for the third quarter of 1999 was $110,000 or a decrease of $138,000 compared to 1998. Diluted net income per share was $.06 compared to the diluted per share amount of $.14 reported for the third quarter of the prior year.

For the first nine months of 1999 sales of $15,192,000 decreased 8% compared to the prior year’s nine-month sales of $16,487,000. Net income decreased to $405,000 compared to $1,084,000 reported in the first nine months of 1998, and diluted net income per share decreased to $.23 compared to diluted net income per share of $.59 reported in the first nine months of the prior year.

Orders received during the third quarter of 1999 were $4.4 million. The backlog at the end of the third quarter of 1999 was $8.0 million, which includes $600,000 at recently acquired Filtran Microcircuits Inc., an increase of $1.8 million or 29% over year-end 1998.

Chairman and CEO Mason N. Carter commented: "Our third quarter performance met our expectations, and year-to-date we are ahead of our order and profit plan in this transition year. Operating performance reflects the team effort and positive changes that we have implemented to our infrastructure. Record marks have been achieved for on-time delivery and inventory management, while late backlog has been virtually eliminated. Our research and development expenses were $577,000 for the third quarter and $1,524,000 for the nine-month period, which are more than double those of the year before.

"Market development of Multi-Mix® Microtechnology overall is positive with significant activity in wireless telecommunications including PCS and cellular applications, broadband applications, point-to-multipoint such as LMDS, point-to-point infrastructure backbone, and wireless LAN. This unique, proprietary technology is recognized for its ubiquitous application in wireless base stations. We consistently identify new applications for Multi-Mix® solutions, which some customers have dubbed ‘an ASIC for RF Microwave’.

"Recently, Factory Mutual Research awarded the prestigious ISO 9001 Certification to our Multi-Mix® Microtechnology Group manufacturing facility. This Certification is the recognized standard for quality by our industry worldwide. It provides assurance to our customers of our commitment to provide world class Multi-Mix® products and services."

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. and its subsidiary Filtran Microcircuits Inc., with locations in West Caldwell, NJ, San Jose, Costa Rica, and Ottawa, Ontario, Canada, have approximately 220 co-workers in the design and manufacture of signal processing components, gold plating of high-frequency microstrip, bonded stripline and thick metal-backed Teflon (PTFE) micro-circuitry, micro-multifunction modules (MMFM™) and subsystems providing Total Integrated Packaging Solutions™ for high-performance, mission-critical applications in 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.

Note: These news releases are also available on the Internet at: www.prnewswire.com.

Contacts

Mason N. Carter, Chairman and CEO,
Tel: 973.575.1300, Ext. 1202; Fax: 973.882.5989
E-mail: mnc@merrimacind.com