Acrodyne Communications, Inc. Reports Financial Results for the Year Ending December 31, 2004

Business Wire, July 1, 2005

COCKEYSVILLE, Md. -- Results of Acrodyne Communications, Inc. operations for the year ended December 31, 2004 were somewhat disappointing. Results for the first six months were relatively strong, but the second six months were lackluster. Management attributes this to television stations' management deferring capital commitments for transmitters while they analyzed the FCC position on high-power digital television conversion deadlines and Sinclair Broadcast Group's completing their digital build-out.

Fiscal 2004 revenues were $10,068,250 compared to $19,231,612 in fiscal 2003. In 2004 the Company recorded a $1,966,441 loss as compared to a loss of $811,829 in 2003.

Ai management anticipated the pending order decline and made major preemptive moves to reduce expenses, thereby minimizing the negative effects of the industry-wide malaise. These moves included lowering management salaries, direct and indirect labor lay-offs, reduced workweek for most remaining hourly employees, and cutting back or eliminating all discretionary expenses.

The unsatisfactory results of 2004 are somewhat offset by record sales order backlog at December 31. Customers who deferred ordering in 2004 placed approximately $6,000,000 of transmitter orders for delivery in the first half of 2005. In order to fill these orders some of the previously laid-off employees were recalled to work. Inventories are building to operational levels while the supply pipeline is reactivated.

"Our sales staff is currently working toward the goal of bringing second half orders up to the level of our first half orders," said Nat Ostroff, CEO of Acrodyne. "Although we have a healthy amount of verbal commitments, they only count when the actual sales order is placed." The Company projects revenue for the first half of 2005 at approximately $7,400,000 and is seeing continued interest in the Quantum transmitters which provides some degree of confidence for a strong second half in 2005.

To supplement the market for high-powered television transmitters, management has redoubled efforts to find complementary lines of business. We are in the preliminary stages of becoming a qualified defense contractor. Our expertise in designing, manufacturing, and servicing RF systems is widely acknowledged. We believe our expertise is unique and will be a major factor in procuring government defense contracts and in attracting prospective new lines of business.

Richard Murray, CFO, commenting on the lateness of the release on the 2004 financial statements, stated, "Certain delays occurred during the conduct of our year-end audit. In addition, after the audit was completed, internal report issuance procedural requirements of our auditors, Grant Thornton, LLP, caused a further delay in our receipt of their opinion. Conclusions relating the financial condition of the Company to the lateness of your receipt of this financial information are inappropriate.

Acrodyne Industries Inc., the operating subsidiary of Acrodyne Communications, Inc., a public company, is an established manufacturer of television broadcast equipment. The corporate headquarters is located in Cockeysville, Maryland (a suburb of Baltimore), and the manufacturing facility is in the Oaks/Phoenixville area (a suburb of Philadelphia). In business for more than 35 years, the company has developed a leading position as a technologically advanced high-quality producer of transmitters used by television stations to broadcast and retransmit their signals.

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.