WEGENER CORPORATION ANNOUNCES IMPROVED FOURTH QUARTER AND FISCAL 1996 YEAR-END RESULTS

Revenues for fiscal 1996 rose 19.0% to $23.2 Million, led by digital video products

Duluth, GA - November 20, 1996 - Wegener Corporation (NASDAQ: WGNR), today announced improved results for the fiscal year ended August 30, 1996. Revenues for fiscal 1996 rose to $23,195,000, up 19.0%, compared to revenues of $19,488,000 for the year ended September 1, 1995. Operating results for fiscal 1996 improved, with net earnings reaching $1,456,000, or $0.16 per share, compared to $385,000, or $0.05 per share, recorded for the year ended September 1, 1995.

Record quarterly revenues of $8,058,000 were posted for the fourth fiscal quarter ended August 30, 1996, up 20.5%, compared to revenues of $6,685,000 for the final three months of fiscal 1995. Net income for the fiscal 1996 fourth quarter was $1,024,000, or $0.11 per share, compared to $410,000, or $0.05 per share, for the three months ended September 1, 1995.

The operating results of the Company for the fourth quarter of 1996 included a charge to inventory reserves of $775,000 for slow-moving and obsolete inventory resulting primarily from the continued maturing of analog products.

The valuation allowance on the deferred tax assets was reversed as the Company believes it is more likely than not that the deferred tax asset will be realized in the future. This resulted in an income tax benefit of $848,000 for the fourth quarter of fiscal 1996.

Announcing results for fiscal 1996, Wegener Corporation Chairman Robert A. Placek said, "Wegener made substantial progress improving the profitability of the Company in fiscal 1996. We anticipate higher levels of shipments in fiscal 1997, even though results in the early quarters may experience some fluctuations. With the proceeds of $5,000,000 from the convertible debt private placement transaction during fiscal 1996, and a new secured revolving line of credit and term loan facility with increased credit limits, we strengthened our ability to sustain higher future revenues. Our fiscal 1996 year-end order backlog rose to $28,045,000, up from $27,402,000 as of September 1, 1995."

Fiscal 1996 bookings were dominated by orders for digital video products. Indicative of growing market momentum, 74% of bookings for MPEG (Motion Pictures Expert Group) digital video products occurred in the fourth quarter. Those orders include a multi-million dollar order from Ascent Network Services. Ascent Network Services owns, operates and maintains NBC's current analog Ku-Band satellite transmission service, which is used for the transmission of NBC network programming to more than 200 affiliates nationwide. A significant portion of this order was shipped in the fourth fiscal quarter of 1996. Also noteworthy is the use of WCI's MPEG broadcast products by Turner Broadcasting System to transmit daily live feeds from its Hong Kong studios. WCI's broadcast quality MPEG-2 digital video products, which began volume shipments in fiscal 1996, boosted orders received from commercial broadcasters by 364% over the previous year.

Bookings for private business broadcast products grew by 30% in fiscal 1996. This includes an order, in excess of $5 million, placed by a prominent private organization for an MPEG-2 digital video network (as a condition of this contract, Wegener is prohibited from disclosing the identity of the buyer). In addition, Eli Lilly and Company chose Wegener's MPEG business products to implement a global business television network. The fully digital network will link facilities, in the United States and abroad, for corporate communications, training, and customer information purposes. Other orders included products for both satellite and terrestrial networks for Reuter's Financial Television, NBC Desktop Video, and Dow Jones Investor Network. These prominent news organizations use Wegener products to provide video to their subscribers' desktop computers.

Orders received from the radio industry increased 44% from fiscal 1995 levels. This growth is attributed to conversion to MPEG digital audio. This year's bookings were led by Jones Satellite Networks, ABC Radio Network, and Moody Broadcasting.

Wegener Corporation, through its wholly-owned subsidiaries, is a market leader in analog and digital compression technology, designs and manufactures communications transmission and receiving equipment for the business broadcast, data communications, cable and broadcast radio and television industries for worldwide markets.

For further information:

Keith N. Smith
Vice President, Business Development
Wegener Communications
770-814-4000
Email: info@wegener.com
World Wide Web: www.wegener.com