Micro Systems Receives $1 M Production Option Award

(Lancaster, Pa., August 2, 2010) -- Herley Industries, Inc. (Nasdaq: HRLY) today announced that its Micro Systems, Inc. subsidiary of Fort Walton Beach, Florida has been awarded a $1 million production contract from a major defense prime contractor for command and control transponders for a full scale aerial target drone. The award is a result of the exercise of a contract option. Future contract options could result in additional business of $1.4 million during the next year for spares and subsequent production units.

Wayne Armstrong, Micro Systems' President commented, "We are proud to remain a part of this program and gratified by a business relationship that has spanned nearly twenty years. Our commitment to the success of the program remains as strong as it was when we began the development phase many years ago."

Richard F. Poirier, Herley CEO and President, noted, "Micro Systems has been successfully providing avionics for target drones for many years. Last month we announced that Boeing had awarded Micro Systems a development and production contract with a potential value of $19 million for the QF-16, the next full-scale aerial target. Together, these awards assure continuous production in the full scale target business."

Source : Herley Industries, Inc.