Applied Signal Technology, Inc. Performs Successful Pipeline Inspection Survey in the Gulf of Mexico

Use of Synthetic Aperture Sonar Results in Significant Project Cost Reduction
SUNNYVALE, Calif.--(Business Wire)--
Applied Signal Technology, Inc. (NASDAQ:APSG) (AST), a market leader in advanced
underwater imaging systems as well as other intelligence surveillance and
reconnaissance systems, today announced that it had recently assisted C & C
Technologies, Inc., using its PROSAS Surveyor synthetic aperture sonar (SAS)
system to survey the integrity of seven pipeline structures in the Gulf of
Mexico for a major oil company. Specifically, AST was tasked to evaluate the
critical positioning of mattresses that are used to protect exposed pipelines
from marine traffic, tidal scour, and storm impact and to determine whether
structural repairs were required. C & C Technologies, Inc. is a privately-owned
international surveying and mapping company specializing in deepwater services.

Aboard the former National Oceanic and Atmospheric Administration (NOAA) ship,
the Ferrell, PROSAS Surveyor performed a 24/7, two-day mission and acquired
sonar data with one square inch resolution over 150 meters range per side. The
system`s ability to produce high definition, photographic-quality, real-time
acoustic imagery across the entire transmission range resulted not only in
superior seabed imagery, but also in increased area coverage rates. This enabled
C&C Technologies to complete a faster, more cost-effective pipeline inspection
survey. The level of detail produced by PROSAS Surveyor enabled the customer to
evaluate exposed pipeline structures and pinpoint the exact location for
necessary structural repairs, thereby mitigating the need for significant and
unnecessary dive operation costs.

Dr. John F. Pesaturo, Vice President of AST`s Sensor Systems Division, said,
"This deployment marks the first time that synthetic aperture sonar technology
has been used in the Gulf of Mexico for subsea pipeline survey operations. AST
is pleased with the accuracy and expedience with which our PROSAS Surveyor
performed. The key differentiator of SAS technology was demonstrated when an
area-of-interest, previously identified by a conventional side-scan sonar
system, indicated the need for a replacement mattress. After only two passes,
our system revealed that the area was not exposed, but merely a mattress folded
over on itself. This finding enabled the customer to avoid unnecessary dive
operation costs, more than offsetting the cost of our participation in the
survey."

About Applied Signal Technology, Inc.

Applied Signal Technology, Inc. is a leading provider of advanced intelligence,
surveillance and reconnaissance (ISR) products, systems, and services that
enhance global security. For further information about Applied Signal
Technology, visit our website at www.appsig.com.

About C & C Technologies, Inc.

C & C Technologies has 600 employees and operates worldwide. The company
provides a full range of offshore survey services, C-Nav global DGPS services,
and is the world leader in deepwater AUV operations. For more information,
please go to www.cctech.us.

Applied Signal Technology, Inc.
James Doyle, 408-749-1888
Chief Financial Officer
or
ICR
James Palczynski, 203-682-8229
Investor Relations

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