Microlog Corporation Receives Notification From Nasdaq Regarding Proposed Delisting

Business Wire, July 2, 2001

Business Editors/Hi-Tech Writers

GERMANTOWN, Md.--(BUSINESS WIRE)--July 2, 2001

MICROLOG CORPORATION (Nasdaq:MLOG) has received notification from Nasdaq that it has not maintained a minimum net tangible assets/market capitalization/net income requirement as required by Nasdaq Marketplace Rule 4310(c)(02)(B), and the Company's securities are proposed to be delisted from the Nasdaq SmallCap Market.

Microlog is appealing the decision and requesting a 90-day extension. The Company also has appealed the previously announced Nasdaq decision related to share price at a formal hearing on June 1. The Company requested a 90-day extension of the compliance period at the June 1st hearing, and will reiterate this request today in a written response to this latest notification.

[pilcrow (paragraph sign)] John Mears, President and CEO, stated "We have appealed to Nasdaq on the basis that events in the next two to three months may have the potential to resolve their concerns. The Company desires to maintain its Nasdaq listing, and believes that Nasdaq's delaying action in this matter will best serve the interests of all concerned."

Microlog Corporation is an interactive communications software company that provides leading-edge Web-based customer interaction management products and services for businesses seeking to better serve their customers.

Microlog offers uniQue, an integrated suite of products and services that blend with existing corporate applications and infrastructure to accomplish both automated response functions (IVR, e-mail, and Web), as well as intelligent interactions between customers and contact center agents.

Interactions today include telephone, e-mail, Web chat, Web callback, Web collaboration, Web bulletin board, voice over IP, Fax, and even scanned hardcopy mail. For additional information, call 301/540-5500 or visit our Web site at www.mlog.com.

Statements in this news release concerning future results, performance, or expectations are forward-looking statements. Actual results, performance, or developments could differ materially from those expressed or implied by such forward-looking statements as a result of known and unknown risks, uncertainties, the Company's ability to introduce new call center products in a timely manner, and the demand for such products, technological innovation and competition, and other factors including those described from time to time in the Company's other filings with the Securities and Exchange Commission, press releases, and other communications.