AMLJ Communications (fka AMLJ)

[MikeDDKing]

AML Communications Sees Growing MALD Program Sales Opportunity
April 06, 2010 13:00 UTC

AML Communications, Inc. (OTCBB:AMLJ), a producer of specialized amplifiers and integrated assemblies for the defense electronic warfare industry, today announced that the United States Air Force is reported to be continuing its investments in the Miniature Air Launched Decoy (MALD™ and MALD™ -J) (see Military Microwave Digest; Electronic Warfare Market, March 2010 http://www.mpdigest.com). MALD is a lightweight, unmanned aerial vehicle decoy with jamming capability developed by the Raytheon Company.

As a major supplier of micro-electronic components used in the MALD program, (see Raytheon Press Release: http://raytheon.mediaroom.com/index.php?s=43&item=1526), AML Communications is positioned to benefit from increased spending on this program. AML has supported the MALD program from its inception and stands to benefit from larger production orders in 2010 with strong potential through 2015.

On March 31, 2010, Waltham, MA-based Raytheon announced that it, “delivered an operationally significant quantity of the Miniature Air Launched Decoy to the U.S. Air Force.” This delivery allows the U.S. Air Force to reach its "required assets available" as scheduled. It continued, “Raytheon will continue to deliver additional MALD’s to the U.S. Air Force to enable the service to meet other training and deployment commitments.”

Industry reports on the MALD program (see Military Microwave Digest; Electronic Warfare Market, March 2010 http://www.mpdigest.com), state that while a small number of prototype decoys were built for testing in 2007, the Air Force approved low-rate initial production (LRIP) of these systems in June 2008.

Previously, the Air Force has cited plans to produce 1,500 MALD decoys by the end of 2012. The FY11 U.S. defense budget provides continuous funding for MALD purchases by the Air Force. In FY09, 146 MALD units were procured by the Air Force, with plans to procure 291 units in FY10 and 228 in FY11. As it is currently set, funding for purchasing MALD’s through 2015 will be about $90 million per year on average. MALD’s production totals may increase above these forecasts if foreign militaries buy them as well.

The current figures do not include the Army or Navy, both of which could also order MALD units. Presently, the U.S. Army is considering a cruise missile interceptor version of MALD in addition to one to be modified and deployed as an anti-armor weapon. Other versions under study include those that could be modified and used as target drones or as stand-off strike missions. The U.S. has also investigated deploying a version equipped with a high-power microwave payload for use as countermeasures against enemy electronic systems.

In January 2010, the Air Force and Raytheon completed the first free-flight test of the MALD Jammer (known as MALD-J, a MALD derivative). The flight test for the MALD-J is set to be followed by a Critical Design Review in 2010 and the termination of the Phase II risk reduction effort. The MALD-J adds radar-jamming functionality to the basic MALD platform. AML has been a key supplier to the MALD and MALD-J program since inception.

The MALD-J has completed a number of captive-carry test missions, and a milestone C decision on placing MALD-J into production is expected in early 2011. The LRIP phase will include production of two orders of about 300 units total, and a third LRIP contract is possible. Following the LRIP phase, production is set to increase to 450 units per year.

Raytheon Company, with 2009 sales of $25 billion, is a technology and innovation leader specializing in defense, homeland security and other government markets throughout the world.

About AML Communications

AML Communications is a designer, manufacturer, and marketer of specialized amplifiers and integrated assemblies that address the defense electronic warfare markets. Its key customers include Raytheon, Lockheed Martin, Northrop Grumman, L-3 Communications, BAE, and others. The Company’s extensive range of microwave low noise amplifiers and power amplifiers can be found in leading defense projects. For more information, visit www.amlj.com.

Forward-Looking Statements

This press release contains forward-looking statements made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, the Company’s views on future profitability, commercial revenues, market growth, capital requirements, new product introductions, and are generally identified by words such as “sees,” “thinks,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “schedules,” and similar words. Forward-looking statements are not guarantees of future performance and are inherently subject to uncertainties and other factors which could cause actual results to differ materially from the forward-looking statements. These factors and uncertainties include: reductions or cancellations in orders from new or existing customers; success in the design of new products; the opportunity for future orders from domestic and international customers including, in particular defense customers; general economic conditions; the limited number of potential customers; variability in gross margins on new products; inability to deliver products as forecast; failure to acquire new customers; continued or new deterioration of business and economic conditions in the wireless communications industry; and intensely competitive industry conditions with increasing price competition. The Company refers interested persons to its most recent Annual Report on Form 10-K and its other SEC filings for a description of additional uncertainties and factors that may affect forward-looking statements. Forward-looking statements are based on information presently available to senior management, and the Company has not assumed any duty to update its forward-looking statements.

AML Communications
Jacob Inbar, President and Chief Executive Officer, 805-388-1345, Ext. 201
or
Financial Profiles
Tricia Ross, 916-939-7285

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