Herley Reports Third Quarter Results( Conference Call Scheduled...),Health

Conference Call Scheduled for Friday, June 13, 2008

LANCASTER, Pa., June 12 /PRNewswire-FirstCall/ -- Herley Industries, Inc. (Nasdaq: HRLY) today reported financial results for the third quarter ended May 4, 2008. Herley reported net sales for the third quarter of $38.5 million, down $5.9 million or 13% from the third quarter of the prior fiscal year.

Herley reported a basic and diluted loss of $0.27 per share including the impact of a litigation settlement agreement with the United States Department of Justice, as compared with basic and diluted earnings per share of $0.28 and $0.27, respectively, for the thirteen weeks ended April 29, 2007.

Excluding the impact of the litigation settlement costs in fiscal 2008, basic and diluted earnings per common share in the third quarter would have been $ 0.15 for the thirteen weeks ended May 4, 2008 as compared to basic and diluted earnings per common share of $0.28 and $0.27, respectively, for the thirteen weeks ended April 29, 2007. On a year-to-date basis, excluding the impact of both the litigation settlement costs in fiscal 2008 and the employment contract settlement costs in fiscal 2007, basic and diluted earnings per common share in 2008 would have been $ 0.07 for the forty weeks ended May 4, 2008 as compared to basic and diluted earnings per common share of $0.46 and $0.44, respectively, for the thirty-nine weeks ended April 29, 2007. A non-recurring income tax benefit of $2.7 million is included in the results for both the thirteen weeks ended May 4, 2008 and the forty weeks ended May 4, 2008. A reconciliation of the Non-GAAP earnings per common share calculation is as follows:

(In thousands, except share data)

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