APPLIED SIGNAL TECHNOLOGY, INC. ANNOUNCES
THE ELECTION OF MILTON COOPER
TO THE BOARD OF DIRECTORS

Sunnyvale, CA. March 16, 2004 – Applied Signal Technology, Inc. (NASDAQ - APSG) announced that Mr. Milton Cooper was elected to the Company’s Board of Directors. Mr. Cooper was the President of the Federal Sector Computer Sciences Corporation (CSC) from January 1992 through February 2001. He also served in marketing and general management positions within IBM Corporation, Telex Corporation, and Raytheon Company. While at CSC, Mr. Cooper led his organization in receiving many awards such as the George Low Award and the Eisenhower Award, and the only federal contractor to rank in the first five of Top Federal Contractors every year since inception of the rankings in 1994. Mr. Cooper is a graduate of the United States Military Academy, and served as an artillery officer in the 82nd Airborne Division prior to leaving active duty in 1963. Mr. Cooper currently serves as a director of Identix, Inc., a provider of fingerprint and facial recognition technology for identification of individuals, and Eplus, Inc., a business selling, leasing, and managing information technology and other assets.

Regarding the election of Mr. Cooper, Mr. Gary Yancey, President and Chief Executive Officer, commented, “We are very pleased to have Milt Cooper join the Board of Directors. His management experience adds a new dimension to our Board that we believe will be very helpful in setting the Company’s strategic direction for continued growth and diversification. Milt can offer valuable advice and insight from a Corporate President’s perspective that should help us as we continue to diversify into new government markets.”

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.