Applied Signal Technology, Inc.
to host a conference call on May 20, 2003
to discuss second quarter operating results

Sunnyvale, CA, May 8, 2003 – Applied Signal Technology, Inc. (NASDAQ-APSG) announced today that it will host a conference call on Tuesday, May 20, 2003 at 2:00PM Pacific Time (5:00PM Eastern Time) to discuss second quarter operating results. Gary L. Yancey, President and CEO will be hosting the call. The second quarter operating results will be released through the newswire services on Tuesday, May 20, 2003 at 1:00PM Pacific Time (4:00PM Eastern Time). Financial and statistical information to be discussed in the call will be available on the company's website immediately prior to commencement of the call.

Investors will have the opportunity to listen to this event two ways - via teleconference or webcast:

Via telephone, the dial-in number is 877-407-8035 for domestic callers, or 201-689-8035 for international callers. There is no pass code required. There will be a question/answer session at the end of the conference call. A 24-hour replay of the teleconference call will be available by dialing 877-660-6853 for domestic callers and 201-612-7415 for international callers. Replay access number is required for the playback by entering account number 1628 and conference ID number 66144. The teleconference call replay will be available beginning at 4:00PM Pacific Time on May 20, 2003 and ending at 11:59PM Pacific Time on May 21, 2003. Webcast replay will be available until August 18, 2003.

Via the webcast, 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. For those who cannot listen to the live broadcast, a replay will be available shortly after the event has ended. The webcast will be available for replay through August 18, 2003.

Applied Signal Technology, Inc. designs, develops, manufactures and markets advanced digital signal processing equipment to process a wide range of telecommunications signals for commercial and government applications. For additional Company–related information, visit the Company’s web site located 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 including customer concentration, competition, dependence upon personnel, volatility of operating results, use of estimates in program costs-to-complete, risks inherent in starting new business ventures, 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, 2002.