Micronetics Reports Q3 FY2005 Results
Hudson, NH -- (BUSINESS WIRE) -- February 14, 2005 -- Micronetics, Inc. (Nasdaq/NOIZ) announced financial results for its third quarter and the first nine months of its fiscal year ending March 31, 2005 (FY2005).

Net sales for Q3 of FY2005 were $3,550,457 as compared to $3,522,351 for Q3 of FY2004, an increase of $28,106 or 0.8%. Net income for Q3 FY2005 was $143,971 or $.03 per share, basic and diluted, as compared to $345,220, or $.08 per share for Q3 of FY2004. The decline in net income can be largely attributed to a one-time increase of $240,000 or $.06 per share in the Company's tax provisions related to the benefit from export sales. Pretax earnings were down 1.5% or $8,911, compared to the same quarter last year.

Net sales for the first nine months of FY2005 increased to $10,343,458 from $9,877,106 in the first nine months of FY2004, an increase of $466,352 or 4.7%. Net income for the first nine months of FY2005 was $798,319 or $.18 per share, as compared with $1,030,405 or $.23 per share, basic and diluted, in the same period a year ago. The reduction in earnings per share is a result of the combination of a one-time adjustment to increase export sales tax provisions, as well as the absence of a carry-forward tax credit in FY2005. Pretax earnings for the first nine months of FY2005 were up 13.6% compared to the same period last year.

David Robbins, President & CEO, stated, "Net sales for Q3 of FY2005 were partially impacted by a deferment in shipments by a customer on a long-running program. We resumed those shipments at the end of Q3 and we expect the shipments to continue. We remain optimistic about our financial performance throughout the remainder of FY2005 for several reasons. First, new orders are up 25% for the first nine months of FY2005, compared to the same period last year. In addition, we have increased our inventory to support growing demand for the Airborne DBS program, while increasing our cash position and liquidity. "

Micronetics manufactures microwave and radio frequency (RF) components and integrated subassemblies used in a variety of defense, aerospace and commercial applications. Micronetics also manufactures and designs test equipment and components that test the strength, durability and integrity of communication signals in communications equipment. Micronetics serves a diverse customer base, including Aerostat, BAE Systems, Boeing, EADS, Honeywell, ITT, L-3 Communications, Lockheed Martin, NEC, Northrop Grumman, Raytheon, Southwest Research, Teradyne, Tektronix and Thales. Micronetics also operates through its wholly owned subsidiaries, Enon Microwave, Inc., Microwave & Video Systems, Inc. and Microwave Concepts, Inc. Additional information can be found on our website at www.micronetics.com.

Some of the statements contained in this news release are forward-looking statements. The accuracy of these statements cannot be guaranteed as they are subject to a variety of risks, including but not limited to the success of the products into which the Company's products are integrated, internal projections as to the demand for certain types of equipment, competitive products and pricing, the success of new product development efforts, the timely release for production and the delivery of products under existing contracts, access to financial resources, future economic conditions generally, as well as other factors. The information in this release should be reviewed in conjunction with Micronetics' Annual Report for its fiscal year ended March 31, 2004.


INCOME STATEMENT DATA
($000s omitted except per share data)

                        Nine Months Ended       Three Months Ended
                           December 31,            December 31,
                         2004      2003         2004       2003
                       --------  --------     --------   --------
Net sales              $10,343    $9,877       $3,550     $3,522
Net income                 798     1,030          144        345
Net income per share:  $   .18    $  .23       $  .03     $  .08

Wgt. avg. shares
Outstanding - diluted    4,410     4,571        4,479      4,515


BALANCE SHEET DATA
                          December 31, 2004       March 31, 2004
                         -------------------     ----------------
Working capital		      $ 7,968  	             $  6,752
Total assets	               14,009		       12,964
Non-current liabilities	          970 	     	        1,083
Shareholders' equity	       11,331  		        9,830

Contact
Micronetics
Richard S. Kalin, President
212-239-8900 x22

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