Applied Signal Technology, Inc. Receives
Significant Interest During Technology Open Houses

Pegasus ESM Family of Products and Third Generation Wireless Communication
Symposium Receive Positive Reviews from Over 300 Government and Industry Participants

SUNNYVALE, CA , November 13, 2007 – Applied Signal Technology, Inc. (NASDAQ: APSG), a market leader in signal collection and exploitation systems, held an open house at its Allen, Texas facility and technology symposiums at its Annapolis Junction, Maryland, and Herndon, Virginia, facilities. The Texas open house unveiled its highly sophisticated Electronic Support Measures (ESM) Pegasus product line in support of Intelligence, Surveillance, and Reconnaissance (ISR). Pegasus is the next generation collection capability with reduced size, weight, and power (SWAP) that can be used for airborne, ground, surface, and sub-surface applications. The high performance, cost-effective product line features fully automated signal processing with an innovative digital receiver architecture and high accuracy monopulse interferometers to meet demanding ISR requirements.

The open house featured a series of presentations and demonstrations of Applied Signal Technology’s (AST) full spectrum of airborne and ground-based ISR solutions for wireless telecommunications and electronic warfare signal collection and exploitation. “This product introduction is the culmination of a three-year investment to introduce an innovative family of products to the defense marketplace. The reception we have received to date, including at our open house, has been very encouraging,” said Robert Blanchard, Vice President of AST’s Electronic Systems Division.

Gary Yancey, AST's Chief Executive Officer, added, “We are pleased with the results of the open house. The Pegasus product line provides an order of magnitude performance improvement over the current state-of-the-art, with substantially lower size, weight, and power to address emerging opportunities in unmanned vehicle collection. We achieved our primary objective of demonstrating a real product and its potential to revolutionize the ISR marketplace. The open house enabled us to reach an impressive cross-section of the customer base.”

On November 6–8, the company hosted Fall Technology Symposiums at its Annapolis Junction, Maryland, and Herndon, Virginia, facilities. The symposiums featured a series of product demonstrations and technical seminars that focused on third generation wireless communication systems, their future applications, and potential implications on ISR collection. John Treichler, AST’s Chief Technology Officer, said “The technology symposiums confirmed the tremendous interest resulting from the rapid changes occurring in the wireless communications industry. Through our combination of technical seminars and equipment demonstrations, we successfully demonstrated that AST is uniquely positioned to address the ISR challenges resulting from the emerging shifts in personal communications”.

Mr. Yancey said “The large number of attendees at these events and the very high level of interest in our ISR solutions further confirm our belief that the global war on terror is creating a demand for more and better ISR. I believe the current and anticipated continuing state of world affairs will create a continual demand for ISR solutions. Since we are a leading provider of ISR solutions, this demand creates an opportunity for us to continue to grow the Company”.

About Applied Signal Technology, Inc.
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 visit our website at www.appsig.com.