INVESTOR NOTICE: MURRAY, FRANK & SAILER LLP IS INVESTIGATING A POTENTIAL SHAREHOLDER CLASS ACTION AGAINST HERLEY INDUSTRIES, INC. - HRLY

New York, NY July 10, 2006 - Murray, Frank & Sailer LLP is investigating a potential class action on behalf of shareholders who purchased or otherwise acquired the securities of Herley Industries, Inc. (“Herley” or the “Company”) (Nasdaq: HRLY) between October 1, 2001 to June 14, 2006, inclusive (the “Class Period”). 

Join the Case

The complaint would charge Herley and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Herley describes itself as a "leader in the design, development and manufacture of microwave technology solutions for the defense, aerospace and medical industries worldwide."

The complaint would allege that, since at least the start of the Class Period, the Company and Lee N. Blatt, its Co-Founder and then Chairman of its Board of Directors, engaged in a course of conduct to defraud the U.S. Government. The complaint would further allege that, throughout the Class Period, defendants issued numerous positive statements concerning the Company's financial performance that failed to disclose, among other things,: (a) that the Company's financial results were achieved through illegal conduct, specifically the misrepresentation of manufacturing costs on contracts with the U.S. Government and the falsification of a bid in order to win the award of a contract; (b) that the Company lacked adequate internal controls; and (c) that, as a result of the foregoing, the Company would likely be subject to enhanced governmental scrutiny, governmental fines for improper conduct, and the Company's ability to receive new contract awards from the U.S. Government and its ability to reap future revenues would be in serious doubt.

On June 6, 2006, the Company announced that the U.S. Attorney's office for the Eastern District in Pennsylvania had indicted the Company and defendant Blatt on multiple charges in connection with activities resulting in alleged excessive profits by the Company on three contracts with the U.S. Department of Defense. Then, on June 13, 2006, the Company announced that its operations in Lancaster, Pennsylvania, Woburn, Massachusetts, Chicago, Illinois and Herley's subsidiary in Farmingdale, New York were suspended from receiving new contract awards from the U.S. Government. In response to these disclosures, shares of the Company's stock have declined from $19.38 per share to a 52-week low of $9.21 per share, losing more than 50% of their value. 

Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than fifteen years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.

If you purchased or otherwise acquired Herley securities on any world exchange between October 1, 2001 to June 14, 2006 and sustained damages, you may, no later than August 14, 2006, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff’s counsel Bradley P. Dyer of Murray, Frank & Sailer LLP.