Lerach Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit against Herley Industries, Inc.

If you wish to serve as lead plaintiff, you must move the Court nolater than 60 days from today. If you wish to discuss this action orhave any questions concerning this notice or your rights or interests,please contact plaintiff's counsel, Samuel H. Rudman or David A.Rosenfeld of Lerach Coughlin at 800/449-4900 or 619/231-1058 or viae-mail at wsl@lerachlaw.com. If you are a member of this class, youcan view a copy of the complaint as filed or join this class actiononline at http://www.lerachlaw.com/cases/herley/. Any member of thepurported class may move the Court to serve as lead plaintiff throughcounsel of their choice, or may choose to do nothing and remain anabsent class member.

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

The complaint alleges that, since at least the start of the ClassPeriod, the Company and Lee N. Blatt, its Co-Founder and then Chairmanof its Board of Directors, engaged in a course of conduct to defraudthe U.S. Government. The complaint further alleges that, throughoutthe Class Period, defendants issued numerous positive statementsconcerning the Company's financial performance that failed todisclose, among other things,: (a) that the Company's financialresults were achieved through illegal conduct, specifically themisrepresentation of manufacturing costs on contracts with the U.S.Government and the falsification of a bid in order to win the award ofa contract; (b) that the Company lacked adequate internal controls;and (c) that, as a result of the foregoing, the Company would likelybe subject to enhanced governmental scrutiny, governmental fines forimproper conduct, and the Company's ability to receive new contractawards from the U.S. Government and its ability to reap futurerevenues would be in serious doubt.

On June 6, 2006, the Company announced that the U.S. Attorney'soffice for the Eastern District in Pennsylvania had indicted theCompany and defendant Blatt on multiple charges in connection withactivities resulting in alleged excessive profits by the Company onthree 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'ssubsidiary in Farmingdale, New York were suspended from receiving newcontract awards from the U.S. Government. In response to thesedisclosures, shares of the Company's stock have declined from $19.38per share to a 52-week low of $9.21 per share, losing more than 50% oftheir value.

Plaintiff seeks to recover damages on behalf of all purchasers ofHerley publicly traded securities during the Class Period (the"Class"). The plaintiff is represented by Lerach Coughlin, which hasexpertise in prosecuting investor class actions and extensiveexperience in actions involving financial fraud.

Lerach Coughlin, a 180-lawyer firm with offices in San Diego, SanFrancisco, Los Angeles, New York, Boca Raton, Washington, D.C.,Houston, Philadelphia and Seattle, is active in major litigationspending in federal and state courts throughout the United States andhas taken a leading role in many important actions on behalf ofdefrauded investors, consumers, and companies, as well as victims ofhuman rights violations. Lerach Coughlin lawyers have been responsiblefor more than $20 billion in aggregate recoveries. The Lerach CoughlinWeb site (http://www.lerachlaw.com) has more information about thefirm.