WEGENER CORPORATION ANNOUNCES FOURTH QUARTER AND FISCAL 1997 YEAR-END RESULTS

*Backlog At Year End Up Versus Year Earlier*

Duluth, GA -- November 13, 1997 -- Wegener Corporation (NASDAQ: WGNR), today announced operating results for the fiscal year ended August 29, 1997. Revenues for fiscal 1997 were $21,812,000 compared to revenues of $23,195,000 for the year ended August 30, 1996. Net loss for fiscal 1997 was approximately $(1,809,000), or $(0.19) per share, compared to earnings of $1,456,000, or $0.16 per share, recorded for the year ended August 30, 1996.

Revenues were $6,620,000 for the fourth fiscal quarter of 1997, compared to revenues of $8,058,000 for the final three months of fiscal 1996. Net loss for the fiscal 1997 fourth quarter was approximately $(942,000), or $(0.09) per share, compared to earnings of $1,024,000, or $0.11 per share for the three months ended August 30, 1996. The Company’s eighteen (18) month order backlog was approximately $19,501,000 as of August 29, 1997 up 41%, from $13,807,000 as of August 30, 1996.

Commenting on the results for fiscal 1997, Mr. Robert A. Placek, President and CEO of Wegener Corporation said, We are disappointed and concerned by the losses recorded for the fourth quarter and full fiscal 1997 year. The impact of lower revenues was exacerbated by the write-offs we took in the final quarter for inventory, capitalized software, bad debts, and restructuring charges amounting to approximately $1,503,000. As discussed later in this release, there has been a fundamental and rapid shift in our business mix to the latest generation of our MPEG-2 product lines, which are experiencing strong demand. During the fourth quarter of fiscal 1997, it became clear that it was timely to reduce, to net realizable value, our inventory of slower moving, mature analog products and earlier versions of digital products, which continue to sell, but at reduced rates. We are aggressively pursuing further cost reductions and streamlining of our operations to improve profitability. Looking forward, we are encouraged by the orders that we have already received from FOX Sports Net and FX Networks, particularly the $11.8 million order received in the third quarter of fiscal 1997, for our newly introduced UNITY digital video products. We are optimistic that fiscal 1998 will show an improvement in Wegener’s results over fiscal 1997.

Bookings for fiscal 1997 were led by orders for newly introduced UNITY digital video products from FOX Sports Net and FX Networks. The network will be controlled by COMPEL, Wegener’s newest network control system. Deliveries of the FOX equipment will commence in the first quarter of fiscal 1998. Bookings for Wegener digital video products in fiscal 1997 were up nearly 43% over fiscal 1996 levels. Wegener network control software controls over 100,000 affiliates in more than 100 networks worldwide.

After strengthening its international sales organization, during fiscal 1997, Wegener received an order for its DV2000 Digital Video Transmission Products from Indian International Telecommunications carrier Videsh Sanchar Nigam Ltd. Of Mumbai. The Wegener equipment will be used to transmit MCPC (Multiple Channels Per Carrier) digital video between New Delhi-Dehradun and Madras-Ambatur.

During fiscal 1997, orders were also received from cable television programmer The Weather Channel for a total of 1,000 additional Weather Star Jrs. which are used to distribute local weather information to cable television systems. Glenayre Electronics placed orders for more than 1,500 satellite paging data receivers during the year. And, long time customer, Muzak placed orders totaling more than $2 million for both digital and analog satellite audio receivers used to distribute programming to affiliates nationwide.

Underscoring a fundamental shift in Wegener’s business over the past few years, over 60% of fiscal 1997 bookings came from video products. Over 90% of video bookings were for digital products, and 67% of digital video bookings were for the newly introduced UNITY product family. New international bookings totaling over $2.8 million were received for Wegener’s DV2000 series digital video transmission products. Wegener also experienced more than 19% growth in bookings for data products, over 19% growth in bookings for network control products, and a 7% increase in orders for addressable analog video receivers from orders from regional sports networks.

Wegener Corporation (NASDAQ: WGNR) based in Duluth, Georgia, 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: info@wegener.com

For further information:

C. Troy Woodbury, Jr.
Treasurer and Chief Financial Officer
Wegener Corporation
Phone: (770) 623-0096
FAX: (770) 623-9648
Email: info@wegener.com
World Wide Web: www.wegener.com

or

J. Desmond Towey
George N. Robinson
Desmond Towey & Associates
(212) 888-7600
FAX (212) 888-7686

Statements about the Wegener Corporation’s future expectations, including development and regulatory plans, and all other statements in this document other than historical facts are forward looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. Since these statements involve risks and uncertainties and are subject to change at any time, the Company’s actual results could differ materially from expected or inferred results.