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CalAmp Reports Fiscal 2004 Fourth Quarter and Year-End Results

04/26/04

* Fiscal 2004 Sales Reach Record Level

* Quarterly Conference Call to Be Held Tuesday 4/27/04

OXNARD, Calif., April 26 /PRNewswire-FirstCall/ -- California Amplifier, Inc. (Nasdaq: CAMP) today reported results for its fourth quarter and fiscal year ended February 28, 2004.

Sales for the fiscal 2004 fourth quarter were $41.6 million, an increase of 60% compared to $26.1 million for the fourth quarter of the prior year. Net income for the fourth quarter increased by 200% to $3.0 million, or $0.18 per diluted share, compared to $1.0 million, or $0.06 per diluted share for the fourth quarter of last year.

Sales for fiscal year 2004 were a record $128.6 million, compared to $100.0 million for fiscal year 2003. Net income for fiscal year 2004 was $5.7 million, or $0.37 per diluted share, compared to $5.2 million, or $0.35 per diluted share for fiscal year 2003.

Fred Sturm, President and Chief Executive Officer commented, "We are pleased with our overall financial performance for fiscal year 2004. Despite a difficult start to the year in our core satellite business, we rebounded strongly in the second half of the year and we were able to complete fiscal 2004 at a record level of sales and also post our fourth consecutive year of profitability.

Mr. Sturm added, "During the year we also made significant progress in two key aspects of our business. First, we reduced our fixed manufacturing costs by subcontracting a significant portion of our manufacturing operations. Second, we've begun the process of transforming our Company into a communication solutions provider for both wired and wireless applications with our recent acquisition of Vytek Corporation. This acquisition enables diversification into markets we believe will provide future growth and continued profitability. I'm excited about the opportunities that I expect will be presented to us as a result of our combined strength in engineering, marketing, manufacturing and professional services."

Mr. Sturm also noted, "Based on our current visibility, we estimate fiscal 2005 first quarter revenues in the range of $43 to $50 million and earnings in the range of $0.06 to $0.10 per diluted share. Our merger with Vytek Corporation was completed on April 12, so our first quarter ending May 31 will include Vytek's operations for about one-half of the quarter. The first quarter is expected to include the write-off of Vytek's in-process R&D of approximately $500,000 pursuant to purchase accounting rules. Other factors impacting this latest guidance are an anticipated increase in the Company's effective tax rate in fiscal 2005 to approximately 38%, compared to an effective rate of less than one percent in fiscal 2004, and the impact of recent substantial increases in the cost of raw steel, which is a key material for our satellite business. We are, however, taking steps to minimize the impact of these cost increases."

As more fully described in a Form 8-K filed today, on April 21, 2004 the Company was served with a complaint alleging certain violations of the California labor code. The Company intends to defend itself vigorously against these allegations and has established what management believes to be an appropriate reserve in the quarter ended February 28, 2004.

In a change from the schedule previously announced, the Company will hold its quarterly conference call on Tuesday, April 27, 2004 at 1:30 p.m. Pacific Time to discuss its fiscal 2004 fourth quarter financial results and current business status. A live audio webcast of the conference call can be accessed on either the Company's web site, www.calamp.com, or on the web site www.prnewswire.com under the Multimedia News section. Both links require listeners to install either RealPlayer or Windows Media Player to access the event. A replay of the audio broadcast will be available for 14 days after the call's completion.

About California Amplifier, Inc.

CalAmp offers service providers, enterprise customers and technology developers a comprehensive range of communications access and content delivery products, services and solutions. The Company leverages its expertise in supplying cost-effective, high volume RF products, as a leading provider of direct broadcast satellite (DBS) equipment to the U.S. DBS market. Drawing upon its growing expertise in networking applications and wireless technologies, the Company has developed solutions for digital multimedia delivery, residential broadband data delivery, retailing applications, public safety markets and wireless enterprise connectivity. With diverse capabilities ranging from product development through cost-effective, large-scale production, CalAmp provides valuable, high quality solutions to a broad array of customers and markets. The Company is headquartered in Ventura County, California and has approximately 800 employees. CalAmp was founded in 1981 and has been publicly traded since 1983. For more information visit: www.calamp.com.

Statements in this press release that are not historical in nature are forward-looking statements, which involve known and unknown risks and uncertainties. Words such as "may," "will," "expects," "intends," "plans," "believes," "seeks," "could," "estimate" and variations of these words and similar expressions are intended to identify forward-looking statements. Actual results could differ materially from those implied by such forward-looking statements due to a variety of factors, including, general and industry economic conditions, competition, development factors, operating costs, the Company's ability to integrate the Vytek acquisition successfully and other risks and uncertainties that are detailed from time to time in the Company's filings with the Securities and Exchange Commission. 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.

For more information, please contact Rick Vitelle, Chief Financial Officer of California Amplifier, Inc., +1-805-987-9000; or Crocker Coulson, Partner, CCG Investor Relations, +1-818-789-0100, crocker.coulson@ccgir.com, for California Amplifier, Inc.

                          CALIFORNIA AMPLIFIER, INC.
                    CONSOLIDATED STATEMENTS OF OPERATIONS
              (Unaudited, in thousands except per share amounts)

                              Three Months Ended         Year Ended
                                 February 28,            February 28,
                             2004         2003        2004         2003

    Sales                  $41,605      $26,071     $128,616     $100,044

    Cost of goods sold      35,179       22,115      110,950       79,511

    Gross profit             6,426        3,956       17,666       20,533

    Operating expenses:
      Research and
       development           1,427        1,167        5,363        5,982
      Selling                  666          617        2,336        2,560
      General and
       administrative        1,346          777        3,984        3,781
                             3,439        2,561       11,683       12,323

    Operating income         2,987        1,395        5,983        8,210

    Non-operating expense,
     net
                      (49)         (56)        (243)        (215)

    Income before income
     taxes                   2,938        1,339        5,740        7,995

    Income tax
     benefit (provision)        36         (368)         (26)      (2,835)

    Net income              $2,974         $971       $5,714       $5,160

    Net income per share:
      Basic                 $ 0.20       $ 0.07       $ 0.39       $ 0.35
      Diluted               $ 0.18       $ 0.06       $ 0.37       $ 0.35

    Shares used in per
     share calculations:
      Basic                 14,885       14,740       14,791       14,639
      Diluted               16,179       14,960       15,390       14,870


    Business Segment Sales
     Information:
                            Three Months Ended           Year Ended
                                February 28,             February 28,
                             2004         2003        2004          2003
    Satellite Products     $39,750      $23,880     $121,000      $88,437
    Wireless Access
     Products                1,855        2,191        7,616       11,607

      Total sales          $41,605      $26,071     $128,616     $100,044


                          CALIFORNIA AMPLIFIER, INC.
                         CONSOLIDATED BALANCE SHEETS
                          (Unaudited - In thousands)

                                                           February 28,
                                                       2004          2003
    Current assets
      Cash and cash equivalents                      $22,885        $21,947
      Accounts receivable, net                        18,579         16,053
      Inventories                                     20,253         12,862
      Deferred income tax assets                       2,807          1,130
      Prepaid expenses and other current assets        3,244          1,100
        Total current assets                          67,768         53,092

    Property, plant and equipment, net                 4,381          9,322
    Deferred income tax assets, less current portion   3,956          5,400
    Goodwill, net                                     20,938         20,938
    Other assets                                         599            845

                                                     $97,642        $89,597

    Current liabilities:
      Current portion of long-term debt               $3,527         $3,005
      Accounts payable                                17,395         11,553
      Accrued payroll and employee benefits            1,513          1,649
      Other accrued liabilities                        2,078          2,198
        Total current liabilities                     24,513         18,405

    Long-term debt, less current portion               7,766         12,569

    Stockholders' equity:
      Common stock                                       149            147
      Additional paid-in capital                      44,486         43,441
      Retained earnings                               21,550         15,836
      Accumulated other comprehensive loss              (822)          (801)
        Total stockholders' equity                    65,363         58,623

                                                     $97,642        $89,597


SOURCE California Amplifier, Inc.

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