Technical Communications Corporation Reports Results for the Third Fiscal Quarter...

Technical Communications Corporation Reports Results for the Third Fiscal Quarter Ended June 28, 2008

CONCORD, Mass.--(Business Wire)--
Technical Communications Corporation (OTC BB: TCCO.OB) today
announced its results for its third fiscal quarter ended June 28,
2008. For the third quarter of the Company's 2008 fiscal year, the
Company reported net income of $186,000 or $0.13 per share, on revenue
of $1,700,000 as compared to net income of $109,000, or $0.08 per
share, on revenue of $1,120,000 for the quarter ended June 30, 2007.
For the nine months ended June 28, 2008, the Company reported net
income of $1,148,000, or $0.82 per share, on revenue of $5,648,000 as
compared to net income of $304,000, or $0.22 per share, on revenue of
$3,169,000 for the nine months ended June 30, 2007.

Included in net income for the quarters ended June 28, 2008 and
June 30, 2007 is $(18,000), or $(0.01) per share and $(25,000), or
$(0.02) per share respectively, in stock-based compensation expense.

Commenting on corporate performance, Mr. Carl H. Guild, Jr.,
President and Chief Executive Officer of TCC said, "As seen during the
third quarter, TCC's financial performance for the first nine months
of the year was significantly improved over the same period in fiscal
2007. Driven by a revenue increase for the nine month period of 78%,
we saw profits rise substantially and our backlog at the end of the
quarter reached $7,590,000.

During the period, TCC continued to make shipments of its DSP9000
Radio Encryption products to prime contractors providing
communications systems to Afghanistan and South American countries. We
expect the DSP9000 business to continue to be strong as current
national deployments expand and new customers are developed. We
believe the DSP9000 Universal Encryption System is ideally suited for
environments where interoperable security is required between existing
deployments of different radios. Currently active markets for TCC's
DSP9000 solution are found in Africa, South America and the Asian
conflict zones of Afghanistan and Iraq. As of the writing of this
press release, a new order for DSP9000 equipment valued at $600,000
has been received and will be deployed to expand an existing system in
a South American country.

TCC has also been very active in expanding our Government Network
Encryption business through upgrades to the DSD72A-SP Military Bulk
Encryptor product line which is deployed extensively around the world.
In May 2008, the US Army awarded TCC a $5,750,000 FMS (Foreign
Military Sales) contract for supply of our DSD72A-SP Military Bulk
Encryptors for delivery to the Government of Egypt over the next 18
months. This contract continues expansion of the DSD72A-SP deployments
in Egypt and provides important upgrades to fielded units. We expect
shipments on this contract to begin in the fourth quarter of fiscal
2008 and continue through the balance of 2009, with the possibility of
additional requirements being added at a later date. Customer
requirements in the Government Network Encryption area are driving the
development of new interfaces for radio frequency and optical networks
as well as higher speed processors for backbone applications."

In conclusion, Mr. Guild said, "TCC will continue to build on the
successes of its product lines by offering customers new products that
anticipate their unique security needs and by providing them with high
quality encryption solutions."

About Technical Communications Corporation

TCC designs, manufactures, and supports superior grade secure
communications systems that protect highly sensitive information
transmitted over a wide range of data, voice and fax networks. TCC's
security solutions protect information privacy on every continent in
over 110 countries. Government agencies, militaries, financial
institutions, telecommunications carriers and multinational
corporations worldwide rely on TCC to protect their communications
networks.

Statements made in this press release, including any discussion of
our anticipated operating results, financial condition and earnings,
and including statements about the Company's ability to achieve and
sustain growth and profitability, constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements, identified by the
use of such terms as "anticipates," "believes," "expects," "may,"
"plans" and "estimates," among others, involve known and unknown
risks. The Company's results may differ significantly from the results
expressed or implied by such forward-looking statements. The Company's
results may be affected by many factors, including but not limited to
future changes in export laws or regulations, changes in technology,
the effect of foreign political unrest, the ability to hire, retain
and motivate technical, management and sales personnel, the risks
associated with the technical feasibility and market acceptance of new
products, changes in telecommunications protocols, the effects of
changing costs, exchange rates and interest rates, and the Company's
ability to secure adequate capital resources. These and other risks
are detailed from time to time in the Company's filings with the
Securities and Exchange Commission, including the Company's Quarterly
Report on Forms 10-QSB for the fiscal quarters ended March 29, 2007
and December 29, 2007 and the Company's Annual Report on Form 10-KSB
for the fiscal year ended September 29, 2007.

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Technical Communications Corporation

Condensed consolidated income statements

Three months ended
(unaudited)

6/28/08 6/30/07
----------- -----------
Net sales $ 1,700,000 $ 1,120,000
Gross profit 1,021,000 750,000
S, G & A expense 659,000 407,000
Product development costs 192,000 259,000
Operating income 170,000 84,000
Net income $ 186,000 $ 109,000
Net income per share:
Basic $ 0.13 $ 0.08
Diluted $ 0.11 $ 0.07

Nine Months ended
(unaudited)

6/28/08 6/30/07
----------- -----------
Net sales $ 5,648,000 $ 3,169,000
Gross profit 3,564,000 2,252,000
S, G & A expense 1,709,000 1,267,000
Product development costs 779,000 746,000
Operating income 1,075,000 239,000
Net income $ 1,148,000 $ 304,000
Net income per share:
Basic $ 0.82 $ 0.22
Diluted $ 0.69 $ 0.20

Condensed consolidated balance sheets

6/28/08 9/29/07
----------- -----------
(unaudited)

Cash $ 4,050,000 $ 2,622,000
Accounts receivable, net 395,000 421,000
Inventory 1,712,000 1,908,000
Other current assets 119,000 96,000
----------- -----------
Total current assets 6,276,000 5,047,000
Property and equipment, net 189,000 107,000
----------- -----------
Total assets $ 6,465,000 $ 5,154,000
=========== ===========

Accounts payable $ 151,000 $ 254,000
Accrued expenses and other current
liabilities 569,000 712,000
----------- -----------
Total current liabilities 720,000 966,000
Total stockholders' equity 5,745,000 4,188,000
----------- -----------
Total liabilities and stockholders' equity $ 6,465,000 $ 5,154,000
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Technical Communications Corporation
Michael P. Malone, 978-287-5100
www.tccsecure.com

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