APPLIED SIGNAL TECHNOLOGY, INC. RECEIVES
$24 MILLION IN NEW ORDERS DURING SEPTEMBER

Sunnyvale, CA. October 3, 2002 – Applied Signal Technology, Inc. (NASDAQ - APSG) announced today that it received over $24 million in new orders during the calendar month of September 2002. Included in these new orders were three recently awarded competitive contracts that totaled more than $12 million. These orders are for delivery of a variety of signal intelligence products and services. New fiscal year 2002 orders received through September 30, 2002 totaled $82 million.

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