Order for Integrated Redundant Distribution Network

WEST CALDWELL, NJ (March 28, 2001) - Merrimac Industries, Inc. (AMEX: MRM), a leader in the design and manufacture of RF Microwave components, assemblies and Micro-Multifunction (MMFM®) Modules, today announced that it has been selected by Astrium (formally Matra Marconi Space) to provide a critical low-frequency, highly integrated, redundant distribution network for system clocks in the digital signal processors on board the three Inmarsat I-4 satellites being built by Astrium.

According to the announcement by Mason N. Carter, Chairman and CEO, Merrimac has received an initial order from Astrium and its partners. The Company projects this and future orders to be over $1MM in 2001. Additionally, Merrimac has initiated discussions with Astrium for future significant orders on the same program.

The Inmarsat I-4 program is the largest commercial contract ever awarded to Matra Marconi Space and the first for Astrium. The satellites will enable Inmarsat to launch a Broadband Global Area Network (BGAN) service planned for 2004, which will permit users of notebook computers and handheld devices to benefit from data rates of up to 432 kbit/s from virtually any land mass in the world via a satellite terminal.

Mason N. Carter commented, "This contract is especially exciting to our Company because it affirms our strong heritage in the commercial satellite market. While we continue to make great strides in meeting the growing demands of our wireless infrastructure customers, we continue to support our defense and satcom customers. This contract validates our view that significant market opportunities exist in the commercial satellite market and, with the increased use of the Internet as a communications medium, we have positioned the Company to take advantage of these opportunities. As technology advances, so does Merrimac's ability to effectively compete in this marketplace and ultimately to increase the profitability of the Company through our expertise in the industry."

Carter added, "Over the years, we have worked closely with Matra Marconi Space on various commercial and defense programs and look forward to providing critical value-added integrated solutions. By bringing together the space division of DaimlerChrysler's German aerospace unit DASA and Matra Marconi Space (owned 50:50 by Britain's BAE Systems and France's Aerospatiale Matra), Astrium has positioned itself as Europe's leading space company, and we look forward to continuing our long-term relationship."

Mr. Michael Le Moine, Astrium's Inmarsat I-4 Project Manager, commented, "We are extremely pleased to continue our long association with Merrimac. Inmarsat I-4 is a demanding task, a very large spacecraft with a highly sophisticated payload centered on this, our own, advanced digital signal processor. We rely heavily on our suppliers to provide high quality products to a tight schedule and trust that Merrimac will meet all our expectations."

About Astrium

ASTRIUM, a joint venture owned 75% by EADS and 25% by BAE SYSTEMS, is Europe's leading space company and number three in the world. Formed in May 2000 by the merger of Matra Marconi Space and the space division of DaimlerChrysler Aerospace, Astrium employs a total of 7,500 people in France, Germany and the United Kingdom. With an annual turnover of some 2 billion Euros, its activities cover the full range of space activities including scientific exploration, civil and military Earth observation and communications, ground systems and navigation constellations, launchers and orbital infrastructure.

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 260 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^TM wireless applications. 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