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California Amplifier Announces Restructuring Actions


CAMARILLO, Calif., May 30 /PRNewswire-FirstCall/ -- California Amplifier, Inc. (Nasdaq: CAMP) today announced that it has taken certain restructuring actions in response to a substantial reduction in orders from the primary customers of its Satellite business unit. In response to this downturn in its Satellite business, during the fiscal 2004 first quarter ending May 31, 2003, the Company reduced its workforce by approximately 50%, which reductions included approximately 225 contract workers. After giving effect to these reductions, the Company has approximately 285 employees. In addition, the Company is in the process of consolidating its two satellite dish antenna manufacturing operations in Wisconsin into a single facility.

The Company has been advised by these Satellite customers that the principal reason for the order reductions is because the customers have accumulated excess inventory levels. The Company believes this situation will adversely affect its sales and results of operations for at least the first two quarters of fiscal 2004. The Company believes that this significant decline in Satellite product orders is a temporary condition. However, the Company is currently evaluating other potential restructuring actions that it may undertake in the event the downturn in its Satellite business persists longer than is currently expected.

Statements in this release about the Company's future financial performance, customer relationships, and products are forward-looking statements and are subject to risks and uncertainties that could cause actual results to differ materially from expectations. Words such as "may," "will," "expects," "intends," "plans," "believes," "seeks," "could," "optimistic," "potential," "estimates" and variations of these words and similar expressions are intended to identify forward-looking statements. Factors that could impact California Amplifier's future results include changes in product demand and market growth rates, the effect of competition, pricing pressures, supplier constraints, manufacturing yields, market acceptance of new products and the viability and market acceptance of new technologies. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be attained. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. More information about California Amplifier's risks is available in the Company's annual report on Form 10-K and other filings made from time to time with the Securities and Exchange Commission.

For further information please contact: Crocker Coulson, Partner of Coffin Communications Group, +1-818-789-0100, , for California Amplifier, Inc.; or Rick Vitelle, Chief Financial Officer of California Amplifier, Inc., +1-805-987-9000.

SOURCE California Amplifier, Inc.

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