Herley Awarded a $16.6 Million IDIQ Contract

LANCASTER, Pa., Aug. 17 /PRNewswire-FirstCall/ -- Herley Industries, Inc.
(Nasdaq: HRLY) announced today that through a subsidiary, it has been awarded
a $16.6 million firm-fixed-price, time and material,
indefinite-delivery/indefinite-quantity (IDIQ) contract for Radio Frequency
(RF) Modules. As required, repair services and engineering and technical
support services will also be performed. The Naval Air Warfare Center Weapons
Division, China Lake, Calif., is the contracting activity.
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Richard F. Poirier, CEO and President, commented, "The RF Modules under this
multi-year IDIQ contract are very complex integrated microwave assemblies used
in airborne threat simulators. This five-year IDIQ contract is a follow-on
award to a previous IDIQ contract for the same modules. We are very pleased
to continue to provide Herley technology, engineering and quality products in
support of the U. S. Government."

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 seven manufacturing
locations and approximately 1000 employees. Additional information about the
company can be found on the Internet at www.herley.com

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

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. Forward-looking statements
involve various important assumptions, risks, uncertainties and other factors
which could cause our actual results to differ materially from those expressed
in such forward-looking statements. Forward-looking statements in this
discussion can be identified by words such as "anticipate," "believe,"
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believe that the expectations reflected in the forward-looking statements are
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Actual results could differ materially from those contemplated by the
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limited to, competitive factors and pricing pressures, changes in legal and
regulatory requirements, cancellation or deferral of customer orders,
technological change or difficulties, difficulties in the timely development
of new products, difficulties in manufacturing, commercialization and trade
difficulties and current economic conditions, including the potential for
significant changes in US defense spending under the new Administration which
could affect future funding of programs and allocations within the budget to
various programs as well as the factors set forth in this report and in our
public filings with the Securities and Exchange Commission.

SOURCE Herley Industries, Inc.

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