Signal Technology to Acquire LogiMetrics

Signal Technology Corporation, California Operation Inc. and <%=company%> (Danvers, MA) have entered into a non-binding letter of intent pursuant to which Signal proposes to acquire Signal Technology Corporation, California Operation through the merger of a wholly owned subsidiary of Signal with Signal Technology Corporation, California Operation. Pursuant to the current terms of the proposed merger, holders of Signal Technology Corporation, California Operation common stock would receive a certain percentage of a tracking security that would reflect the performance of SWG, which would be distributed upon completion of a public offering of SWG Equity, and shares of Signal common stock.

In connection with the letter of intent, Signal has loaned approximately $2 million to Signal Technology Corporation, California Operation for working capital and other purposes. Pursuant to the letter of intent, Signal Technology Corporation, California Operation granted to Signal the option to purchase their high-power amplifier business, currently conducted at the facility in Bohemia, New York, for a purchase price of $2 million less the unpaid portion of any loans made by Signal. Concurrently, certain existing investors in Signal Technology Corporation, California Operation have also loaned them approximately $1 million.

In addition, upon execution of the letter of intent, Signal assumed the management and operation and has assumed all current liabilities of the high-power amplifier business. Signal is responsible for all expenses incurred and is entitled to retain all revenues generated in connection with its operation of that business.

Signal Technology Corporation, California Operation develops and manufactures point-to-multipoint broadband, fixed wireless radios and transceivers for sale to telecommunications system integrators. In addition, the company is a leading manufacturer of high-power traveling wave tube amplifiers.