Applied Signal Technology, Inc. Wins $200 Million ISR Contract

SUNNYVALE, California, August 26, 2009 – Applied Signal Technology, Inc. (AST) (NASDAQ: APSG), a market leader in advanced intelligence, surveillance, and reconnaissance (ISR) solutions, today announced that it has received a five-year, indefinite delivery, indefinite quantity (IDIQ) contract from an undisclosed customer. The contract, which has a total ceiling value of $200 million, will provide a wide range of advanced ISR capabilities and related services to the intelligence community. Under this contract, AST will develop and integrate specialized signal processing equipment as well as assist with system deployment, operations, and maintenance, including advanced signal analysis.

“This contract award is an extension of Applied Signal Technology’s long-standing commitment to the defense and intelligence community and reflects the government’s confidence in our ability to deliver complete, mission-critical solutions that exceed their expectations, while adhering to fixed budgets and time constraints,” said William Van Vleet, Chief Executive Officer. “This award reinforces what customers have come to expect from Applied Signal Technology – sophisticated signal reconnaissance systems and services that help solve their most difficult national security challenges.”

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.