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Enhances Company Positioning as a Prime Contractor

SUNNYVALE, California, April 19, 2010 – Applied Signal Technology, Inc. (AST) (NASDAQ: APSG), a market leader in advanced intelligence, surveillance and reconnaissance (ISR) systems, products, and services, announced today that it has been appraised as fully compliant at Maturity Level 3 with the Software Engineering Institute’s (SEISM) Capability Maturity Model® Integration for Development (CMMI®) version 1.2. This extensive evaluation rates AST’s engineering development and management processes against rigorous CMMI standards used by the Department of Defense and civilian sectors of the federal government. The evaluation was conducted by a team led by Al Truesdale, an independent, SEI authorized lead appraiser from Center for Systems Management, based in Vienna, Virginia.

The internationally recognized rating is used throughout industry as a prerequisite and an evaluation factor for the acquisition of military and government programs with significant systems and software engineering content. The rating is granted to companies that have established well-defined, repeatable, and effective standards for project management, hardware and software engineering, systems integration, and quality assurance, while maintaining a focus on continuous process improvement.

William B. Van Vleet, AST’s President and CEO, commented, “The CMMI Maturity Level 3 rating marks an important milestone in our company’s commitment to excellence and continuous improvement. It provides assurance to our current and prospective customers that AST projects will be completed on time, within budget, and to the highest standards. This appraisal helps advance our vision of becoming the ISR contractor of choice by providing the highest quality systems, products, and services.”

About the Carnegie Mellon Software Engineering Institute

The Software Engineering Institute (SEISM) is a U.S. Department of Defense federally funded research and development center operated by Carnegie Mellon University. The SEI helps organizations make measured improvements in their software engineering capabilities by providing technical leadership to advance the practice of software engineering. For more information, visit the SEI Web site at http://www.sei.cmu.edu. 

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.

®    Capability Maturity Model and CMM are registered in the U.S. Patent and Trademark Office by Carnegie Mellon University. CMMI is
        registered in the U.S. Patent and Trademark Office by Carnegie Mellon University
SM   SEI is a service mark of Carnegie Mellon University.