Merrimac Vice Chairman Announces Retirement

WEST CALDWELL, NJ (December 31, 1998) - Merrimac Industries, Inc. (AMEX: MRM), WEST CALDWELL, NJ, announces that it has accepted the early retirement of Eugene W. Niemiec, the Company's Vice Chairman and Chief Technology Officer. Mr. Niemiec will continue to serve as a member of its Board of Directors.

Mason N. Carter, Chairman and CEO commented: "Gene Niemiec has served Merrimac well for almost two decades in various executive officer and engineering positions and as a fellow Board Member. We will miss him in our daily operations and look forward to his continued contribution as a Director of the Company."

The Company previously announced a reduction of its workforce. It also offered early retirement packages to certain employees during the fourth quarter of 1998. Since the earlier announcement, the Company has revised upwards the restructuring charge for the fourth quarter of 1998 from approximately $200,000 to approximately $500,000 before taxes as a result of the reduction in workforce and voluntary early retirements. The saving in costs for future fiscal years from these events should approximate $1,100,000 annually. A portion of these savings will be utilized toward the hiring for critical positions during the next fiscal year. Mr. Carter commented: "This restructuring addresses both current market conditions and the strategic focus of our technology and market development. Management is taking appropriate action without losing sight of our many accomplishments and the strategic progress we continue to make."

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., with locations in West Caldwell, NJ and San Jose, Costa Rica, has approximately 155 co-workers in the design and manufacture of signal processing components, 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.

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Contacts

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