APPLIED SIGNAL TECHNOLOGY, INC. ANNOUNCES
IT WILL HOST A CONFERENCE CALL TO DISCUSS THE IMPACT
OF THE SEPTEMBER 11TH ATTACK

Sunnyvale, CA. Tuesday, October 9, 2001 - Applied Signal Technology, Inc. (NASDAQ: APSG) announced today that it will host a conference call on Thursday, October 11, 2001, at 8:00AM (PDT) to discuss its preliminary assessment of the potential impact on its business, including financial projections, as a result of the events on September 11, 2001. Gary L. Yancey, President and CEO will be hosting the call. If you wish to participate in the conference call, please dial 1-888-343-1302 on October 11, 2001 at 8:00AM (PDT). There is no pass code required.

Investors will have the opportunity to listen to this event simultaneously over the Internet through World Investor Links’ Vcall Website, located at http://www.vcall.com. To listen, please go to the Website at least fifteen minutes early to download, and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the event has ended.

A replay of this conference call will be available from October 11, 2001 at 10:00AM (PDT) and ending on October 25, 2001 at 10:00AM (PDT). To access the conference call replay, dial 1-800-633-8284 and enter Reservation number 19859478.

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.