Acrodyne Announces Strong Earnings for the Year

Business Wire, March 1, 2004

Business Editors

COCKEYSVILLE, Md.--(BUSINESS WIRE)--March 1, 2004

Acrodyne Communications, Inc. (ACROE), manufacturer of the Quantum(R) line of television transmitters with locations in Baltimore and Phoenixville/ Oaks, PA, today announced their net earnings for 2003 more than doubled their net earnings for 2002.

Net earnings this year were $811,800 as compared to $389,300 for year 2002. This marked improvement in performance over last year was accomplished on twenty-five percent less sales. Sales for 2003 were $19,232,000 versus $26,064,000 for last year.

Gross margin for the year increased to 29.3% of sales as compared to 26.1% last year. Improved gross profit performance in a year reflecting a very tough market is attributable to stringent cost cutting measures along with improved efficiency in the manufacturing area. Wherever possible, jobs that were formerly contracted out are now completed in-house. Our performance is especially encouraging since we introduced a new Quantum transmitter model in the second half of this year.

Earnings were strong in the first half of 2003 but remained relatively flat in the second half of the year while our engineering and manufacturing areas focused on the final adjustments to our new Quantum Depressed Collector IOT transmitter.

Cost reduction programs commenced in the second quarter and were successfully implemented throughout the Company. Operating expenses although primarily fixed compared to sales declined 21.9% from last year. "This confirms the success of our continuing challenge of every operation and discretionary expenditure in the Company" stated Nat Ostroff, President and Chairman of the Board.

As previously announced, the recapitalization with Sinclair Broadcast Group, Inc. on January 1 increased outstanding shares of common stock from 7,409,608 at December 31, 2002 to 28,217,496. Earnings per share for 2003 were $.03, down from $.05 in 2002.

On August 12, 2003, Acrodyne filed the necessary form with the Securities and Exchange Commission to deregister its common stock, thereby relieving the company of requirements to file quarterly and annual reports with the SEC. Relief from the periodic reporting requirements is available to the Company since it has fewer than three hundred shareholders of record.

Nat Ostroff also stated, "We believe the cautious capital expenditures market will continue through the first half of 2004 before television stations needing improved transmitters give their approval to purchase additional capital equipment."

This press release may contain "forward-looking statements" concerning future expectations, plans, or strategies that involve a number of risks and uncertainties. Readers are also directed to consider other risks and uncertainties discussed in documents previously filed with the SEC.