Congressman Sam Johnson Attends Grand Opening of
Applied Signal Technology’s Texas Facility

SUNNYVALE, California, October 28, 2005 – U.S. Congressman Sam Johnson (R-Texas), was on hand today to preside over the dedication ceremony of the new Applied Signal Technology, Inc. (NASDAQ - APSG) facility in Allen, Texas. 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 included 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.

AST’s significant investment in advanced technologies is allowing the company to develop low size weight and power systems costing much less than comparative technology with significant gains in performance. The flexible family of systems is referred to 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 Vehicle systems with configurations adaptable up to large scale manned platforms to include surface, subsurface, ground mobile, and all mixes in between. Pegasus will deliver high performance ESM/ELINT collection at competitive costs.

Congressman Johnson was provided a briefing on Applied Signal Technology, Inc. (AST) overall corporate structure and focus by Corporate Chief Marketing Officer, Michael Ready. Congressman Johnson was joined for the briefing and facility tour by Allen Mayor Steve Terrell and Allen Economic Development Corporation (AEDC) executive director Charisse Bodisch and AEDC Board President Kurt Kizer. The tour included demonstration of the facility antenna test range and viewing of one of the new system products prototypes by Congressman Johnson.

“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. “Our initial prototype systems will be demonstrated within the coming year with various new customers expressing significant interest.”

Congressman Johnson stated “that this type of technology will help the warfighters be more effective and will certainly save lives.” He also discussed that Allen and the surrounding Collin County was an area with “amazing technical talent and becoming a focus for growing companies needing high-caliber employees.”

Mayor Terrell thanked the AST management for locating in Allen and echoed Congressman Johnson’s comments regarding the significant growth of high technology in Allen and the surrounding communities.

The 32,000 square-foot RDT&E facility consists of offices, electronics fabrication and test space, an antenna test range, and systems integration areas.

The dedication ceremony of the new facility was concluded with a luncheon and discussion session lead by AST Chief Operating Officer, Ben Scribner.

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.