Applied Signal Technology, Inc. Successfully Completes
Unmanned Flight Test of Miniature Airborne SIGINT System

SUNNYVALE, California, January 30, 2009 – Applied Signal Technology, Inc. (NASDAQ: APSG) (AST), a leading provider of advanced intelligence, surveillance, and reconnaissance (ISR) solutions, successfully completed flight test demonstration of the Model 570X SIREN—a miniature airborne signals intelligence (SIGINT) payload for ISR operations.

Ground and flight tests of the Model 570X were conducted aboard a Piper Seneca airplane, as well as a hand-launched tactical UAV in both California and Maryland and achieved excellent collection and geo-location results.

The Model 570X can be carried-on or integrated into ground-based and airborne ISR platforms and its low size, weight, and power (SWAP) allows it to be used in a wide variety of tactical applications with relatively minimal impact to the platform and user.

“The Model 570X SIREN provides a critical capability to the tactical SIGINT community,” said Dr. Joseph Leonelli, Vice President of AST’s Intelligence and Electronic Warfare Division. “It operates across a wide bandwidth and provides tactical users with the ability to accurately identify and locate emitters on the battlefield. This rigorous ground and flight testing provides a high degree of confidence that the Model 570X will enable and enhance ground-based and airborne surveillance capabilities that our tactical forces need in today's threat environment.”

AST has invested many years of research and development in the collection and exploitation of modern wireless communication signals and offers a complete line of ISR products for ground-fixed, expeditionary, and airborne missions serving the national security market. The anticipated market potential for the Model 570X SIREN is approximately $10 million over the next three years.

About Applied Signal Technology, Inc.

Applied Signal Technology, Inc. is a leading provider of advanced intelligence, surveillance and reconnaissance (ISR) products, systems, and services that enhance global security. For further information about Applied Signal Technology, visit our website at www.appsig.com.