CONGRESSMAN SAM JOHNSON TO ATTEND GRAND OPENING
OF APPLIED SIGNAL TECHNOLOGY'S TEXAS FACILITY

SUNNYVALE , California, October 18, 2005– U.S. Congressman Sam Johnson (R-Texas), is scheduled to join Applied Signal Technology, Inc. (NASDAQ - APSG) in a dedication ceremony to celebrate the grand opening of its Electronic Systems Division research and development facility in Allen, Texas on Monday, October 24, 2005. This facility is dedicated to the research, development, test and evaluation (RDT&E) of Electronic Support Measures (ESM) and Electronics Intelligence (ELINT) systems for military Intelligence, Surveillance, and Reconnaissance (ISR) and homeland defense applications. The event will include a tour and technology presentation.

As a former USAF fighter pilot and POW, Congressman Johnson is a leading Congressional expert on military readiness issues and recognizes the need for new technologies that address the changing threats to our troops deployed in Iraq , Afghanistan, and our homeland security.

APSG’s flexible system architecture relies on a family of “systems” derived from the ESM/ELINT system known as Pegasus. Pegasus is the next generation ESM/ELINT collection capability with reduced Size, Weight, and Power (SWaP) that can be used for a variety of missions and applications. The system is configured in “building block” fashion, and is highly adaptable to aircraft, ground, surface and sub-surface applications for ESM and ELINT missions. The flexibility and scalability of the Pegasus family of equipment allows installation into Unmanned Aerial Vehicle (UAV) class systems with configurations adaptable up to large scale manned platforms, and all mixes in between. Pegasus will deliver high performance ELINT collection at competitive costs.

“Our investment in ELINT and this RDT&E production facility represents an aggressive initiative to develop an advanced family of systems that can be compatible with the low size, weight, and power requirements of UAVs; manned/unmanned airborne, ground, surface, and subsurface vehicles; and legacy manned aircraft programs. The modular, rapidly-adaptable, and scalable sensor suites developed here through our internal research and development investment will enhance our ability to collect, identify, and track new and modified weapons and signals across the globe,” says Robert Blanchard, Vice President of APSG’s Electronic Systems Division.

The 32,000 square-foot RDT&E facility consists of offices, electronics fabrication/test area, as well as a production area.

The dedication ceremony of the new facility is scheduled to begin at 1:00 PM and will include remarks by Congressman Johnson.

Applied Signal Technology, Inc. provides advanced digital signal processing products, systems and services in support of intelligence, surveillance, and reconnaissance for global security. For further information about Applied Signal Technology’s products and services visit our web site at www.appsig.com.