Wireless Telecom Group Announces Second Quarter Financial Results

Business Wire, August 9, 2007

Second Quarter Sales Increase 17% to $14.3 Million

First Half Net Income Increases 38% to $1.7 Million

PARSIPPANY, N.J. -- Wireless Telecom Group, Inc. (AMEX: WTT) announced today results for the second quarter and six months ended June 30, 2007.

For the second quarter, the Company reported net sales of $14,274,000, compared to $12,155,000 for the same period in 2006, an increase of 17%. For the first six months, net sales were $28,403,000, compared to $25,978,000 for the same period in 2006, an increase of 9%.

For the second quarter, net income was $1,004,000, or $0.04 per diluted share, compared to $190,000, or $0.01 per diluted share, for the same period in 2006, an increase of 428%. Net income for the second quarter includes $420,000, realized as a foreign exchange gain in the German subsidiary. For the first six months, net income was $1,667,000, or $0.06 per diluted share, compared to $1,206,000, or $0.05 per diluted share, for the same period in 2006, an increase of 38%.

The increase in net income for both periods was achieved while investing more in R&D to expand the number of products concurrently in development, as previously announced. R&D for the second quarter was $2,248,000, compared to $1,621,000 in 2006, an increase of 39%. Year-to-date, R&D was $4,286,000, compared to $3,238,000 for the same period in 2006, an increase of 32%.

Monty Johnson, CEO of Wireless Telecom Group, Inc., stated, "We are pleased with our results in the second quarter and year-to-date. Through the first half of 2007, our revenues grew solidly, our orders outpaced shipments, and we improved upon our profitability. Our ability to achieve both top and bottom-line growth demonstrates the success of our growth strategy and the continued demand for our products in the markets we serve.

We have increased our R&D investments in the first half of 2007 in order to pursue attractive and strategic opportunities, most notably 3G wireless deployments in China. These investments have yielded positive results as we have already shipped the first orders for our TD-SCDMA wireless communications tester. During the quarter, we also introduced and received orders for our new market leading products for Tetra professional mobile radio testing, high-performance computer testing, and WiMAX infrastructure. Based on the strong response and initial demand for these products, we believe we are well positioned for continued growth."

He concluded, "Asia is again the home of our largest customer for the quarter. The mobile handset manufacturing market continues to expand within the region, which is consistent with our strategy of partnering with the manufacturers of TD-SCDMA capable handsets. As a result, we remain optimistic that our momentum in the region will continue."

Wireless Telecom Group, Inc designs and manufactures a variety of products serving the global wireless and telecommunications markets. Comprised of four business groups brought together through acquisitions, Noise Com, Boonton Electronics, Microlab/FXR, and Willtek, the group provides a complementary suite of RF and Microwave-based products, with a major portion focused on advanced telecom testing. Their products include peak power meters, precision noise generators, mobile phone testing solutions, and passive component solutions for cellular/mobile, WiFi, WiMAX, satellite, and other advanced communications networks, all critical enablers to the rapid growth in world-wide communications and computing solutions. This technological synergy has enabled Wireless Telecom Group, Inc. to become a full service supplier of both the commercial and military telecommunications industries.

Wireless Telecom Group's website address is http://www.wirelesstelecomgroup.com. Except for historical information, the matters discussed in this news release may be considered "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include declarations regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual results. Such risks and uncertainties are identified in the Company's reports and registration statements filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2006.

See following Selected Financial Results

                 SELECTED FINANCIAL RESULTS
            (In thousands, except per share amounts)

                            Three months ended     Six months ended
                                  June 30,              June 30,
                                 ---------             ---------
                                (unaudited)           (unaudited)

                              2007       2006       2007       2006
Statement of Operations Data:
----------------------------
Net sales                   $ 14,274   $ 12,155   $ 28,403   $ 25,978

Gross profit                   7,962      6,571     15,588     14,113

Operating expenses
    Research and
     development               2,248      1,621      4,286      3,238
    Sales and marketing        3,149      2,858      6,149      5,718
    General and
     administrative            1,823      1,598      3,621      3,511
                            --------   --------   --------   --------
Total operating expenses       7,220      6,077     14,056     12,467

Interest and other (income)     (474)       (70)      (548)      (161)

Income before income taxes     1,216        564      2,080      1,807

Net income                  $  1,004   $    190   $  1,667   $  1,206
                            ========   ========   ========   ========

Net income per common share:
Basic                           $.04      $ .01       $.06       $.05
                                ====      =====       ====       ====
Diluted                         $.04      $ .01       $.06       $.05
                                ====      =====       ====       ====

Weighted average shares
 outstanding:
    Basic                     25,863     25,851     25,858     25,787
    Diluted                   26,258     25,958     26,061     26,102


                              June 30,         December 31,
                                2007              2006
                              --------         -----------
Balance Sheet Data:
------------------
Cash & cash equivalents       $  8,773          $ 15,683

Working capital               $ 24,019          $ 21,946

Total assets                  $ 77,387          $ 83,329

Total liabilities             $ 18,522          $ 26,433

Shareholders' equity          $ 58,865          $ 56,896