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Signal Technology Awarded Follow-On Transmitter Production Contract for Global Hawk Aircraft

Thursday October 12, 8:48 am Eastern Time
Press Release

Company's Keltec Division to Supply State-of-the-Art 4Kw Transmitter for Intelligence Imagery Data

DANVERS, Mass.--(BUSINESS WIRE)--Oct. 12, 2000-- Signal Technology Corporation (``Signal'') (Nasdaq: STCO - news), a leading provider of electronics components and subsystems for wireless communications in the commercial, defense and space markets, today announced that its Keltec Division has been awarded a follow-on production contract for its 4Kw transmitter. Keltec's transmitter is an integral part of the Synthetic Aperture Radar (SAR) that gathers intelligence imagery data on the Global Hawk, a long endurance unmanned reconnaissance aircraft.

``Signal's continued support to this important program validates our technical expertise and production capabilities in the transmitter market. The U.S. Government has recently designated the Global Hawk as `Military Useful,' which is expected to extend the program well into the future,'' said Keltec Division President John Cotumaccio.

Signal's Keltec Division, based in Fort Walton Beach, Florida, designs and manufactures a wide variety of power management components, including high- and low-voltage power supplies, amplifiers, transmitters and power converters for use in wireless communications infrastructure applications in the commercial and defense markets.

About Signal Technology

Signal is a leader in developing state-of-the-art electronic components and systems for wireless communications, defense and space applications. Through its Signal Wireless Group (SWG), the company is addressing the exploding global demand for Internet and data bandwidth by developing RF radio sub-systems for broadband fixed wireless telecommunications applications worldwide. SWG also develops and manufactures switching/combining components and subsystems for PCS/cellular digital applications for sale to wireless base station infrastructure providers. In its defense businesses, Signal develops and manufactures RF, microwave, and power conversion products for communications networks, electronic countermeasures, missiles, radar, intelligence and guidance systems for sale to defense prime contractors worldwide. For further information about Signal, please visit Signal's Web site at http://www.sigtech.com.

``Safe Harbor'' Statement under the Private Securities Litigation Reform Act of 1995: The statements made in this news release that are not historical facts contain forward-looking information that involves risks and uncertainties. Important factors that may cause actual results to differ include, but are not limited to, market acceptance risks, the effect of economic conditions, the impact of competitive products and pricing, product development, capacity, supply constraints, and other risks detailed from time to time in the Company's Securities and Exchange Commission filings. These documents identify and describe important factors that can cause results to differ materially from those contained in any forward looking statements we may make.

Contact:

     George Lombard
     Chairman and CEO
     Signal Technology Corporation
     (978) 774-2281
      or
     Paul Sagan
     Vice President
     Sharon Merrill Associates, Inc.
     (617) 542-5300

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