Stellex Completes Phoenix Microwave Acquisition

Phoenix Microwave Corp. Industries has completed the acquisition of privately held RF and microwave component supplier <%=company%> The acquisition was financed through Stellex's existing acquisition facility. The combined operations will maintain their current facilities in California and Pennsylvania.

Gus Kamnitsis, a founder and president of Phoenix, will run the combined microwave components operation. Keith Gilbert, president of Stellex Microwave, will focus on expanding microwave sub-systems business.

The acquisition is subject to the finalization of definitive documentation, the receipt of necessary governmental approvals and financing and certain other conditions. Stellex expects to finance the acquisition through borrowings under senior secured credit facilities and the issuance of $20 million of preferred stock. The closing of the acquisition is anticipated to occur in March or April of 1999.