News Release

Merrimac Reports Third Quarter and Nine Months 2003 Results

WEST CALDWELL, N.J., November 12, 2003: Merrimac Industries, Inc. (AMEX: MRM), a leader in the design and manufacture of RF Microwave components, assemblies and micro-multifunction modules (MMFM®), today announced results for the third quarter and first nine months of 2003.

Third quarter 2003 sales of $6,357,000 increased 7.0 percent compared to third quarter 2002 sales of $5,939,000. Operating loss in the third quarter of 2003 was $431,000, which takes into account a third quarter personnel restructuring charge of $54,000, compared to operating income of $72,000 in the third quarter of 2002.

Net loss for the third quarter of 2003 was $484,000 or $.16 per share, giving effect to the impact of the personnel restructuring charge of $.02 per share and the gain on the disposition of real estate assets of $33,000 or $.01 per share, compared to net income of $57,000 or $.02 per share recorded for the third quarter of 2002.

For the first nine months of 2003 sales of $19,481,000 increased 1.2 percent compared to sales of $19,252,000 for the first nine months of 2002. Operating loss for the first nine months of 2003 was $1,437,000, which takes into account personnel restructuring charges of $128,000, compared to operating income of $193,000, which takes into account a personnel restructuring charge of $240,000, for the first nine months of 2002. Expenses associated with bank modification agreements incurred during the second quarter and additional professional fee expenses in connection with our prior bank facilities totaling approximately $300,000, impacted results for the first nine months of 2003.

The net loss for the first nine months of 2003 was $1,415,000 or $.45 per share, giving effect to the impact of the personnel restructuring charges of $.04 per share and gains on the dispositions of assets of $104,000 or $.03 per share, compared to net income of $146,000 or $.05 per share, giving effect to the impact of the second quarter 2002 personnel restructuring charge of $.05 per share, for the first nine months of 2002.

The decline in gross profit during the third quarter of 2003 to 34.6 percent from 44.0 percent in the third quarter of 2002, and to 37.0 percent from 45.7 percent during the first nine months of 2003 compared to the first nine months of 2002, was primarily attributable to competitive pricing, cost overruns, increases in depreciation and other occupancy expenses related to expansion and underutilization of manufacturing facilities.

The backlog at the end of the third quarter of 2003 was $12.2 million, an increase of $2.1 million or 21.3 percent compared to year-end 2002, and $1.3 million or 11.6 percent when compared to the backlog of $11.0 million at the end of the third quarter of 2002. Orders received during the third quarter of 2003, totaling $6.4 million, approximated the third quarter of 2003 sales level. Orders received for the first nine months of 2003, totaling $21.6 million, exceeded sales in the first nine months of 2003 by approximately 11.0 percent.

Chairman and CEO Mason N. Carter commented, "The Company believes that the economy is starting to recover, and anticipates performance improvement for the fourth quarter of 2003 and beyond. Cost overruns that negatively impacted third quarter 2003 results should not continue as a major factor and, as sales increase, underutilization of manufacturing facilities should lessen.

"On October 8, 2003, we successfully completed refinancing approximately $5.7 million of debt obligations with a new facility provided by CIT Business Credit, a unit of CIT Group Inc. The refunding represents a three-year secured revolving credit, term loan and letter of credit facility for $9,250,000."

Management of the Company has implemented certain cost and capital expenditure reductions as a means to improve cash flow. The new revolving credit facility combined with the expected cash flows from operations should be sufficient to meet the Company's current obligations and to fund its currently contemplated operations during the next twelve months.

Investors are invited to participate in the financial results conference call on Thursday November 13, 2003 at 4:15 p.m. (Eastern) by dialing 1-800-838-4403 (for International callers: 1-973-317-5319) ten minutes prior to the scheduled start time, and reference the Merrimac Industries third quarter 2003 conference call. For those unable to participate, a replay will be available for seven days by dialing 1-800-428-6051, or 1-973-709-2089 for international callers, passcode number 313101.

This conference call will also be broadcast live over the internet by logging on to the web at this address:

http://www.firstcallevents.com/service/ajwz393633644gf12.html

If you are unable to participate during the live webcast, the call will be archived on the Merrimac website:
http://www.merrimacind.com

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; 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.

Note: Merrimac news releases are also available on the Internet at: http://www.prnewswire.com

Merrimac Industries, Inc.
Summary of Consolidated Statements of Operations
(Unaudited)

	Quarter Ended
	Sept. 27, 2003	Sept. 28, 2002
Net sales	$6,357,000	$5,939,000
Gross profit	2,201,000	2,616,000
Selling, general and administrative expenses	2,262,000	1,821,000
Research and development	316,000	723,000
Restructuring charge	54,000	-
Operating income (loss)	(431,000)	72,000
Interest and other expense, net	52,000	25,000
Gain on disposition of assets	(33,000)	-
Income (loss) before income taxes	(450,000)	47,000
Provision (benefit) for income taxes	34,000	(10,000)
Net income (loss)	(484,000)	57,000
Basic and diluted net income (loss) per common share:	$(.16)	$.02
Weighted average number of shares outstanding - basic	3,121,000	3,145,000
Weighted average number of shares outstanding - diluted	3,121,000	3,148,000

	Nine Months Ended
	Sept. 27, 2003	Sept. 28, 2002
Net sales	$19,481,000	$19,252,000
Gross profit	7,207,000	8,795,000
Selling, general and administrative expenses	7,176,000	6,451,000
Research and development	1,340,000	1,911,000
Restructuring charges	128,000	240,000
Operating income (loss)	(1,437,000)	193,000
Interest and other expense, net	165,000	127,000
Gain on disposition of assets	(104,000)	-
Income (loss) before income taxes	(1,498,000)	66,000
Benefit for income taxes	(83,000)	(80,000)
Net income (loss)	(1,415,000)	146,000
Basic and diluted net income (loss) per common share:	$(.45)	$.05
Weighted average number of shares outstanding - basic	3,120,000	3,056,000
Weighted average number of shares outstanding - diluted	3,120,000	3,099,000

Merrimac Industries, Inc.
Condensed Consolidated Balance Sheets

	Sept. 27 2003 (Unaudited)	Dec. 28 2002
ASSETS
Current Assets:
Cash and cash equivalents	$557,000	$3,611,000
Income tax refunds receivable	46,000	301,000
Accounts receivable, net	5,461,000	3,801,000
Inventories	3,582,000	4,015,000
Other current assets	687,000	318,000
Deferred tax assets	945,000	945,000
Total current assets	11,278,000	12,991,000
Property, plant & equipment, net	17,870,000	19,282,000
Restricted cash	1,500,000	-
Other assets	669,000	818,000
Deferred tax assets, non-current	1,084,000	905,000
Goodwill, net	2,953,000	2,491,000
Total Assets	35,384,000	36,487,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Current portion of long-term debt	$1,007,000	$6,240,000
Other current liabilities	3,065,000	3,134,000
Total current liabilities	4,072,000	9,374,000
Long-term debt, net of current portion	5,330,000	429,000
Deferred compensation	96,000	123,000
Deferred liabilities	48,000	156,000
Deferred tax liabilities	1,736,000	1,703,000
Total liabilities	11,282,000	11,785,000
Stockholders' equity	24,072,000	24,702,000
Total Liabilities & Stockholders' Equity	$35,354,000	$36,487,000