Applied Signal Technology, Inc. Selects New Vice President to
Lead Network Intelligence Organization

SUNNYVALE, California, October 22, 2009 – Applied Signal Technology, Inc. (AST) (NASDAQ: APSG), a market leader in advanced intelligence, surveillance, and reconnaissance (ISR) solutions, today announced the selection of Roger W. Anderson as Vice President of Network Intelligence, effective October 27. Mr. Anderson will report to Chief Operating Officer, Mark M. Andersson, and will be responsible for identifying new opportunities and executing successful business strategies to expand the company’s portfolio in the cyber intelligence domain and services sector.

Mr. Anderson, an accomplished leader in Intelligence Community programs, brings more than 28 years experience in program and customer relationship management, strategic planning, program development, and systems engineering. Most recently, Mr. Anderson served as Senior Executive Account Manager (SEAM) for the Intelligence Community Growth business area of Harris Government Communications Systems Division (GCSD), a leading supplier of enabling technology and custom communications system solutions for intelligence community customers and pursuits.

Before joining Harris in 2006, Mr. Anderson was Executive Vice President and General Manager of Mnemonics, Inc., a private defense electronics firm. Mr. Anderson retired as a senior executive from the Central Intelligence Agency in 2002 after 15 years of service.

William B. Van Vleet, AST’s Chief Executive Officer, commented, “The key to our continued growth is to expand our presence in existing and emerging markets with our full spectrum of next-generation ISR solutions. Roger’s deep technical, business, and operating background and successful track record of driving strategic initiatives and program development will help us to quickly identify and execute on new opportunities within the defense and intelligence sectors and deliver increasing value to our customers. We are excited to welcome him to our team.”

Mr. Anderson commented, “I am thrilled to join the Applied Signal Technology team. This company has made a remarkable impact in the defense and intelligence communities by delivering state-of-the-art ISR products, systems, and services. I’m joining the company at a very exciting time. I look forward to leveraging my past experience to help the company continue this growth by engaging new customers, expanding the company’s portfolio in cyber intelligence, and solidifying its role in the engineering services market.”

Mr. Anderson is a graduate of the University of Kentucky with a Bachelor of Science in Physics and holds a Master of Science in Physics from Georgia Tech. He is a member of the Institute of Electrical and Electronic Engineers (IEEE) and the Armed Forces Communications and Electronics Association (AFCEA). He received the Distinguished Career Intelligence Medal for contributions to the CIA’s mission and the NSA Exceptional Civilian Service Award, the highest merit award granted by the NSA.

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.

Except for historical information contained herein, matters discussed in this news release may contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially. Statements as to the accretive nature of the acquisition, the future expansion of the Company’s software and network services business, future opportunities in the fast growing cyber intelligence market, the excellent short and long-term opportunities in the cyber intelligence market and the ability to obtain a greater share in the expanding cyber market, as well as the ability of Pyxis to demonstrate strong and sustained growth, are all forward-looking statements. The risks and uncertainties associated with these statements include our ability to capture organic growth opportunities, our ability to execute the acquisition of Pyxis and realize the expected benefits of the acquisition, our ability to obtain future orders from procurers, including the U.S. Government and the timing of any such orders placed by procurers; our ability to perform orders well and profitably; and our ability to hire qualified staff as needed; and other risks detailed from time to time in our SEC reports including our latest form 10-K filed for the fiscal year ended October 31, 2008. The Company assumes no obligation to update the information provided in this news release.