Acrodyne Communications Awarded $4 Million Turn Key Project From Broward County Florida

Market Wire, July, 2006

Acrodyne recently won a $4 million contract from The School Board of Broward County, Florida, an educational television station; to construct a complete television broadcast transmission facility, including two of our Quantum IOT Depressed Collector Transmitters. We also expanded our related activities to include site development and commissioning projects for the telecommunications industry. These types of opportunities add to the breadth of our expanding lines of business complementing our domestic high power transmitter activity.

Net earnings for the six-month period ended June 30, 2006 for Acrodyne Communications, Inc. increased over the same period last year. Net earnings are $151,900 ($.005) compared to a loss of $10,200 for the same six-month period in 2005.

Sales are relatively flat compared to last year. For the six-month period ended June 30, 2006, Acrodyne sales were $7,308,000, down 1.9% from $7,448,000 attained in the first six months of 2005. Cost of sales remained essentially the same for the two six-month periods.

Operating expenses for the period rose approximately 3% over the same period last year. Most of the increased expense is attributable to adding key people to the manufacturing staff in order to efficiently expedite production during the period.

We were saddened to learn of the death this year of Marshall Smith, an early owner of Acrodyne. Mr. Smith was receiving compensation in consideration for a 1994 non-compete agreement. A major part of the liability for future payments terminated with his passing. Accordingly, a $400,000 reduction in that liability was credited to operations in 2006.

Acrodyne Communications, Inc., a Delaware corporation, is an unregistered publicly held company whose stock is traded over the counter under the symbol ACRO.PK.

The company's operating subsidiary is Acrodyne Industries, Inc., 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 Oaks/Phoenixville, Pennsylvania (a suburb of Philadelphia). In business for more than 35 years, the company has attained 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.

FOR ADDITIONAL INFORMATION: Richard Murray 610-917-2086 410-568-1708 Email Contact