WEGENER CORPORATION REPORTS FOURTH QUARTER AND FISCAL 1998
YEAR-END RESULTS

* * * STRONG TURN-AROUND FOR FISCAL 1998 REPORTED * * *

October 7, 1998 - Duluth, GA: Wegener Corporation (NASDAQ: WGNR), today announced improved operating results for the fiscal year ended August 28, 1998. Revenues for fiscal 1998 were $34,255,000, compared to revenues of $21,812,000 for the year ended August 29, 1997. Earnings for fiscal 1998 were approximately $2,760,000, or $0.23 per share, compared to a net loss of $(1,809,000), or $(0.19) per share, for the fiscal year ended August 29, 1997.

For the fourth fiscal quarter of 1998, revenues were $7,527,000 compared to revenues of $6,620,000 for the final three months of fiscal 1997. Earnings for the fiscal 1998 fourth quarter were approximately $347,000, or $0.03 per share, compared to a net loss of $(942,000), or $(0.09) per share for the fiscal 1997 fourth quarter. The Company’s eighteen month order backlog was approximately $12,596,000 as of August 28, 1998.

Elaborating on the results, Robert A. Placek, Chairman and CEO of Wegener Corporation, commented, "We are very pleased to report our good results for the fourth fiscal quarter and the full fiscal 1998 year. The strength in our business is currently in digital video for both the cable and the broadcast TV industries, and also in our radio network business. The opportunities in these markets are there for continued growth."

Wegener Communications President, Keith N. Smith, adds, "Fiscal 1998 was an excellent year. In the coming year we see continued strength from the UNITY product line in business networks, and cable and broadcast television. We anticipate substantial growth in our new UNITY radio network products With over 90% of Wegener’s current revenues based on domestic sales, we do not expect to be hurt by any global downturn in international markets. Given our current small international business, and a new focus on key international opportunities, we believe that this segment will actually grow in fiscal 1999."

FISCAL 1998 HIGHLIGHTS INCLUDED:

• Ascent Network Services placed an order for Wegener’s UNITY private network receiver for use in GE Medical Services (GEMS) satellite network. GEMS will distribute medical programming to more than a thousand medical facilities.

• The Channel One Network placed an ad-on order for WGNR analog video receivers for use in its distance learning network. The Channel One Network is a learning community of 12,000 American middle, junior and high schools representing over 8 million students and 400,000 educators. The Channel One Network was one of the first private networks to utilize Wegener’s network control technology.

• Oregon ED-NET selected WGNR digital video receivers for its distance learning network. Oregon ED-NET is an organization under the Oregon Department of Administrative Services that operates a statewide telecommunications network for education, training and related information exchange.

• Glenayre Electronics, Inc., which provides leading-edge personal telecommunication systems, including products for paging and cellular networks, placed an add-on order for Wegener data receivers that are used in Glenayre’s paging networks.

• Paxson Communications chose the Wegener UNITY4000 receiver and COMPEL Network Control to distribute PAX TV. Paxson Communications owns and operates the nation's largest group of television stations. Paxson launched PAX TV, the national family entertainment network, on August 31st to both broadcast and cable television

• All India Radio placed orders for WGNR digital audio transmit and receive equipment to distribute radio programming throughout India. All India Radio, a national service planned, developed and operated by the Ministry of Information & Broadcasting under the Government of India serves over 97% of the population of India.

• ABC-TV launched "All My Soaps" a new cable network, using the Wegener UNITY4000 receiver and the Wegener COMPEL Network Control system.

• The Weather Channel placed an add-on order for Wegener Weatherstar Jrs. The Weatherstar Jr is a data receiver and display unit used to display local weather information at cable television systems. This order is a continuation of a 1993 manufacturing agreement between the two companies and brings the total quantity ordered under the agreement to 3500 units.

• Music Technologies International placed orders for digital audio receivers to be installed throughout the United States at a prominent national retailer’s location. These Wegener digital receivers will provide in-store music and programming.

• Fox Liberty Networks and FX Networks placed additional orders for UNITY4000’s to support their continued conversion to digital distribution of their cable networks.

• NBC News Channel chose WGNR DVT2000 Digital Satellite News Gathering (DSNG) products for use in their network feeds to and from affiliates.

• Turner Broadcasting placed several orders throughout the year for both DVT2000 and UNITY4000 digital video transmitters and receivers.

• NSN Network Services provided JACOR a satellite delivered contribution network linking JACOR's major market radio properties using WGNR UNITY4000 receivers and COMPEL Control. JACOR is a group station owner and provider of radio network programming.

• Wegener Communications achieved its registration as an ISO 9001 company. This confirms that Wegener Communications' policies & procedures adhere to the International Standards Organization's (ISO) most demanding quality guidelines.

ABOUT WEGENER COMMUNICATIONS

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) 814-4000
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

SOURCE: Wegener Corporation

COMPEL and UNITY are trademarks of Wegener Communications. All rights reserved.

This news release contains statements which may be forward looking within the meaning of applicable securities laws, including the Private Securities Litigation Reform of 1995. The statements may include projections regarding future sales results, expected contributions to margins and earnings and market opportunities, and are based upon the Company’s current expectations and assumptions, which are subject to a number of risks and uncertainties including, but not limited to: customer acceptance and effectiveness of recently introduced UNITY digital video products, development of additional business for the Wegener digital and analog video and audio transmission product lines, effectiveness of the revitalized international sales organization and the successful development and introduction of new products in the future.