Applied Signal Technology, Inc. Purchases Focus-2
Remotely Operated Tow Vehicle (ROTV) to Offer Shallow Water Surveying Capability

SUNNYVALE, California, March 7, 2008 – Applied Signal Technology, Inc. (NASDAQ: APSG) has purchased a Focus-2 remotely operated tow vehicle (ROTV) from MacArtney A/S to support its PROSAS™ Surveyor program.

The PROSAS Surveyor is a high performance towed synthetic aperture sonar (SAS) system for hydrographic survey that can perform in areas with strong currents and high traffic density such as ports, harbors, and coastal waters. The system is fitted with a real-time, ultra high performance SAS designed to produce imagery with 1-inch resolution over a 400 meter swath and can be towed at speeds of up to 8 knots. Optimized for use in shallow water, the PROSAS Surveyor is the latest variant of AST’s SAS product line built in support of worldwide naval and security programs.

PROSAS Surveyor systems will be available for purchase or in conjunction with underwater survey services to serve the needs of the hydrographic, military, and homeland security markets. The current system will undergo a series of sea trials over the next six months to demonstrate and validate various scenarios for customers.

“This is an important addition to our sonar product line because it provides high-resolution images in a cost-competitive package that is quickly and easily deployed,” said Dr. John F. Pesaturo, Vice President of AST’s Ocean Systems Division. He continued, “We now have a complete hydrographic system that will allow our customers to test drive before they buy. We look forward to demonstrating the new system to prospective customers and showing the performance advantages over legacy sonar systems.”

Niels-Erik Hedeager, Managing Director of MacArtney A/S said, “The Focus-2 has been demonstrated and proven in the oil and gas industry as a highly stable and steerable tow platform.” He continued, “Over the past two years, we have worked side-by-side with AST to integrate its synthetic aperture sonar with the Focus-2 platform in support of the PROSAS Surveyor program. We are pleased that our relationship continues to move forward and are very excited to assist AST with introducing the PROSAS Surveyor to the worldwide market.”

For more detailed information on PROSAS Surveyor applications, specifications, and upcoming sea trials, visit the Applied Signal Technology booth, number 905, at Oceanology International, March 11-13, London ExCeL. The Focus-2 ROTV will be on display at the MacArtney A/S booth, number 410.

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.

About MacArtney A/S

MacArtney Underwater Systems, manufacturer of FOCUS and TRIAXUS tow vehicles, winch and handling systems, supplies products and engineering solutions to Navies, surveyors, security forces and offshore operators worldwide.