Applied Signal Technology Inc. has been awarded a competitive contract from PanAmSat Corp. Under the contracts terms Applied Signal Technology will develop and manufacture 11 satellite monitoring systems to be installed at PanAmSat ground facilities worldwide. Once installed, these systems will provide state-of-the-art signal measurement and analysis capabilities for PanAmSat's international satellites and will be networked via LAN/WAN into PanAmSat's international satellite operation centers in the United States.

The overall system architecture is based on a robust, client-server operating environment which makes it possible to provide global mission-critical information in a timely, reliable manner. With this information, PanAmSat's network personnel will gain enhanced insight into the health and operational status of its valuable satellite assets. In addition, the contract provides for APSG to provide installation of each of these systems at each of the PanAmSat sites on a time-and-material basis.

Gary Yancey, Applied Signal Technology's President and Chief Executive Officer, said, "This award represents a major diversification of our marketplace which is very healthy for APSG. We feel this satellite monitoring marketplace can offer many opportunities for both defense and commercial requirements. We intend to augment this first contract with R&D to attempt to make this a

growing marketplace."

Yancey went on to say, "This opportunity fits our business model

in that the Model 2010 transponder monitoring system is simply a

variant of our Model 196 transponder characterization system for

signal reconnaissance. We believe this marketplace would typically

provide opportunities for orders of less than 100 units per potential

customer and this matches our manufacturing capability. Since this

marketplace is not a consumer marketplace and is a niche industrial

marketplace, it requires the same marketing strategy as our signal

reconnaissance marketplace."