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Herley’s Micro Systems, Inc. Awarded $8.2 Million Contract by U. S. Navy

Friday, September 26th, 2008

LANCASTER, Pa., Sept. 26 /PRNewswire-FirstCall/ — Herley Industries, Inc. (Nasdaq: HRLY) announced today that its Ft. Walton Beach subsidiary, Micro Systems, Inc., has been awarded contracts valued at $8.2 Million from Naval Air Systems Command PMA 208 of Patuxent River, MD.

The award is for additional system hardware and target transponders to replace units that have been consumed in normal operations of the System for Naval Target Control (SNTC) and for sustaining logistics and engineering support of the products that have previously been delivered.

Micro Systems’ president, Wayne Armstrong commented, “We are delighted to continue our support of the SNTC Program. We have enjoyed a long and successful partnership with the Navy on the program and are proud to remain a valued member of their team.”

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 eight manufacturing locations and approximately 1,000 employees. Additional information about the company can be found on the Internet at http://www.herley.com.

For information at Herley contact: Tel:(717) 735-8117 Peg Guzzetti www.herley.com Investor RelationsSafe 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. When used in this report, words such as “anticipated,” “believes,” “could,” “estimates,” “expects,” “may,” “plans,” “potential” and “intends” and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the belief of the Company’s management, as well as assumptions made by and information currently available to the Company’s management. The Company’s results could differ materially based on various factors, including, but not limited to, cancellation or deferral of customer orders, difficulties in the timely development of new products, difficulties in manufacturing, increased competitive pressures, and general economic conditions. The Company undertakes no obligation to update forward-looking statements as a result of future events or developments.

SOURCE Herley Industries, Inc.