Sunnyvale, CA. August 9, 2001 – Applied Signal Technology, Inc. (NASDAQ: APSG) announced today that the Q3 FY2001 Operating Results will be released through the newswire services on Wednesday, August 22, 2001 at 6:30AM (PDT). A conference call will be held on Thursday, August 23, 2001 at 8:00AM(PDT) to discuss the Q3 FY2001 operating results. Gary L. Yancey, President and CEO will be hosting the call. If you wish to participate in the conference call, please dial 888-882-0114 on Thursday, August 23, 2001 at 8:00AM(PDT). For those of you calling from the international areas please dial 212-748-2737.

A replay of this conference call will be available from Thursday, August 23, 2001 at 10:00AM (PDT) until Thursday, September 6, 2001 at 10:00AM (PDT). To access the conference call replay, dial 800-633-8284 and enter Reservation number 19523594.

Applied Signal Technology designs, develops, manufacture and markets advanced digital signal processing equipment to collect and process a wide range of telecommunications signals for signal reconnaissance and industrial applications. For additional Company-related information, visit the Company’s web site at www.appsig.com.

Except for historical information contained herein, matters discussed in this news release may contain forward-looking statements that involve risks and uncertainties. Statements as to beliefs concerning potential contract options, the Company’s ability to successfully complete the initial contract to position it to win future phases, whether or not the U.S. Government decides to procure subsequent phases, potential synergistic effects from working with other companies, and beliefs concerning contractual opportunities for further orders are forward-looking statements. These risks and uncertainties include whether these potential orders will be issued by the U. S. Government; whether the Company will be successful in obtaining contracts for these orders if they are forthcoming and when such orders may be forthcoming and awarded; whether the Company can successfully complete the initial contract and any options, if awarded; and other risks detailed from time to time in the Company’s SEC reports including its latest Form 10-K filed for the fiscal year ended October 31, 2000.