Ericsson invests in Merrimac Industries for access to new multilayer microtech.

Ericsson invests in Merrimac Industries for access to new multilayer microtechnology Ericsson and Merrimac Industries, Inc., have made an agreement in which Ericsson has purchased 375,000 newly issued shares of Merrimac common stock, representing approximately 17.5% of Merrimac's outstanding common stock, at a price of $9.00 per share. This agreement gives Ericsson Microelectronics priority access to Merrimac's patent-pending Multi-Mix Microtechnology, a new, innovative process for microwave, multi-layer integrated circuits and modules to be used in present and future mobile telecom applications. The Multi-Mix design consists of fusion bonded multi-layer structures, which permits manufacture of components and subsystems at a fraction of the size and weight of conventional microstrip and stripline products. Ericsson intends to employ the promising Multi-Mix technology in present and future RF applications, including RF Power. Ericsson is investigating the possibility of employing Multi-Mix technology for Bluetooth transceivers. Mason N. Carter, Chairman and CEO of Merrimac, commented: "This commitment by Ericsson is recognition of the unique capabilities of Multi- Mix Microtechnology for the rapidly growing wireless telecommunications market. Since Multi-Mix packaging is versatile and allows for out-of-the- box thinking for a broad variety of solutions, our relationship with Ericsson will foster creative co-development of wireless technologies." "We have been increasing capacity and have implemented significant operational efficiencies. We are now planning to further expand Multi-Mix processes to accommodate higher volumes of components, assemblies and Micro-Multifunction Modules (MMFM ) that we expect this relationship will generate." Bo Andersson, Vice President and General Manager of Ericsson Microelectronics AB, commented: "We believe that by combining Ericssson Microelectronics' state-of-the-art wafer processing and wireless know-how with Multi-Mix technology, we will be able to provide our customers with even more consistent and more functional RF components and modules. Potential applications include our HIT (High Impedance Technology) product lines as well as our industry-leading Bluetooth transceivers." "By forming this close partnership with Merrimac we expect to speed our time to market with new and higher value products that will further demonstrate our leadership in the microelectronics industry." Merrimac Industries, Inc. and its subsidiary Filtran Microcircuits Inc., with locations in West Caldwell, N.J., San Jose, Costa Rica and Ottawa, Ontario, Canada have approximately 200 co-workers in the design and manufacture of signal processing components, gold plating of high frequency microstrip, bonded stripline and thick metal-backed Teflon (PTFE) micro circuitry and subsystems providing Total Integrated Packaging Solutions for wireless applications. Merrimac (MRM) is listed on the American Stock Exchange. Please visit Merrimac's website at: http://www.merrimacind.com Ericsson is the leading provider in the new telecoms world, with communications solutions that combine telecom and datacom technologies with freedom of mobility for the user. With more than 100,000 employees in 140 countries, Ericsson simplifies communications for its customers - network operators, service providers, enterprises and consumers - the world over. Please visit Ericsson's Press Room at: http://www.ericsson.se/pressroom FOR FURTHER INFORMATION, PLEASE CONTACT Tom Moller, Vice President and General Manager, Ericsson Inc., Microelectronics Phone: + 1 408 776 0612; E-mail: tom.moller@ericsson.com Bengt Callmer, Director of Communications, Ericsson Microelectronics AB Phone: + 46 8 757 4689; E-mail: bengt.callmer@ericsson.com Mason N. Carter, Chairman and CEO, Merrimac Industries, Inc. Phone: +1 973-575-1300, ext. 202; E-mail: mnc@merrimacind.com ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/04/10/20000410BIT00700/bit0001.doc http://www.bit.se/bitonline/2000/04/10/20000410BIT00700/bit0002.pdf