Herley's Israeli Subsidiary is Awarded a $7.1 Million Contract

LANCASTER, Pa., Jan. 12 /PRNewswire-FirstCall/ -- Herley Industries, Inc.
(Nasdaq: HRLY) announced today that Herley General Microwave Israel ("GMIC")
has been awarded a contract valued at approximately $7.1 million to produce
complex integrated microwave assemblies for a radar program for the
international market.

Myron Levy, Herley's Chairman and CEO, commented, "My congratulations go to
Yonah Adelman, General Manager of our Israeli operations and his staff.
Herley GMIC is well recognized in the industry for its strong engineering and
quality production hardware. This is the Company's third award for this
program. The expectations are for annual orders of approximately $4M for the
next three years."

Herley Industries, Inc. is a leader in the design, development and manufacture
of microwave technology solutions for the defense, aerospace and medical
industries worldwide. Based in Lancaster, PA, Herley has six manufacturing
locations and approximately 1,000 employees. Additional information about the
company can be found on the Internet at http://www.herley.com.

Safe Harbor Statement - Except for the historical information contained
herein, this release may contain forward-looking statements. Such statements
are inherently subject to risks and uncertainties. When used in this report,
words such as "anticipated," "believes," "could," "estimates," "expects,"
"may," "plans," "potential" and "intends" and similar expressions, as they
relate to the Company or its management, identify forward-looking statements.
Such forward-looking statements are based on the belief of the Company's
management, as well as assumptions made by and information currently available
to the Company's management. The Company's results could differ materially
based on various factors, including, but not limited to, cancellation or
deferral of customer orders, difficulties in the timely development of new
products, difficulties in manufacturing, increased competitive pressures, and
general economic conditions. The Company undertakes no obligation to update
forward-looking statements as a result of future events or developments.

For information at Herley contact:
Peg Guzzetti
Investor Relations
Tel: (717) 735-8117

http://www.herley.com

SOURCE Herley Industries, Inc.

Investor Relations, Peg Guzzetti of Herley Industries, +1-717-735-8117