APPLIED SIGNAL TECHNOLOGY, INC.
TO HOST A CONFERENCE CALL ON MAY 25, 2004
TO DISCUSS SECOND QUARTER OPERATING RESULTS

Sunnyvale, CA May 11, 2004 – Applied Signal Technology, Inc. (NASDAQ: APSG) announced today that it will host a conference call on Tuesday, May 25, 2004 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 25, 2004 at 1:00PM Pacific Time (4:00PM Eastern Time).

Investors will have the opportunity to listen to this event two ways - via teleconference or webcast:
Live participant dial-in number is 877-407-8035 for domestic 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 104849. The teleconference call replay will be available beginning at 4:00PM Pacific Time on May 25, 2004 and ending at 11:59PM Pacific Time on May 26, 2004.

This call is being webcast by Vcall and can be accessed at Applied Signal Technology, Inc. web site at www.appsig.com. The webcast is also being distributed over PrecisionIR's Investor Distribution Network to both institution and individual investors. Investors can listen to the call through www.vcall.com or by visiting any of the investor sites in PrecisionIR's Individual Investor Network.

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. For additional Company-related information, visit the Company's web site at www.appsig.com.