Fairview, PA, June 16, 2005 -----Spectrum Control, Inc. (NASDAQ: SPEC), a leading designer and manufacturer of electronic control products and systems, today reported results for the second quarter ended May 31, 2005.

For the second quarter of fiscal 2005, the Company reported net income of $1,322,000 or 10 cents per share on sales of $25,882,000, compared to net income of $1,528,000 or 12 cents per share on sales of $21,484,000 for the same period last year. For the first half of fiscal 2005, the Company had net income of $1,929,000 or 15 cents per share on sales of $47,024,000. For the comparable period of 2004, the Company had net income of $2,140,000 or 16 cents per share on sales of $38,609,000.

Dick Southworth, the Company's President and Chief Executive Officer, commented, "During the second quarter of fiscal 2005, our sales increased by $4.4 million or 20.5% from the same period last year. In addition to $6.0 million of shipments being generated by the impact of our two recent acquisitions (Amplifonix, Inc. in February 2005 and the Components Business Unit of REMEC, Inc. in October 2004), sales of RF and microwave components and systems grew by approximately $600,000 from a year ago. Demand for these products in military/aerospace applications remains strong. Sales of our power management systems increased in the second quarter of 2005 by $1.4 million compared to the same period last year. These advanced systems (which we developed internally and began introducing to the marketplace during the last few years) are primarily used in infrastructure equipment for telecommunications, computer networks, and certain military applications. Shipments of our signal and power integrity products were down $3.6 million from a year ago, reflecting poor market conditions throughout the passive electronic components industry. The strength of our RF and Microwave Components and Systems Business, as well as our Power Management Systems Business, reaffirms our strategic plan of product expansion and market diversification. Accordingly, we are very confident that our Company is well-positioned for continued sales growth and greater profitability".

Quarter Highlights

• Second quarter 2005 sales were up $4.7 million or 22.4% from the first quarter of 2005, and net income was up $715,000 or nearly 118.0% from the current year first quarter.
• In the second quarter of 2005, our gross margin was 25.3% of sales compared to 30.5% of sales for the same quarter last year. This decline in gross margin percentage primarily reflects additional manufacturing overhead costs from: the ongoing integration and consolidation of our recent acquisitions; poor absorption of fixed manufacturing overhead resulting from the decline in revenue of our signal and power integrity components business; and expenses incurred to support the current and planned future growth of our RF and microwave components and systems business. While these factors are negatively impacting our current gross margins, as we further integrate our recent business acquisitions, we expect to improve operating efficiencies and reduce costs through better manufacturing capacity utilization.
• Despite additional working capital requirements, we generated $1.1 million of net operating cash flow during the first half of fiscal 2005. After expending $10.4 million of cash in February 2005 for the acquisition of Amplifonix, our cash and cash equivalents were $6.7 million at May 31, 2005, our current ratio was 5.68 to 1.00, our total borrowed funds were only $1.7 million, and our total debt to equity was 0.17 to 1.00.
• Total customer orders received in the second quarter of 2005 amounted to $27.1 million, an increase of $5.3 million or approximately 24.0% from both a year ago and the first quarter of fiscal 2005.
• The book-to-bill ratio in the second quarter of 2005 was 1.05 to 1.00.

Business Segment Discussion

Our operations are currently conducted in three reportable segments: signal and power integrity components; RF and microwave components and systems; and power management systems.

Our Signal and Power Integrity Components Business designs and manufactures a broad range of products including low pass electromagnetic interference ("EMI") filters, filter plates, filtered connectors, specialty ceramic capacitors, power entry modules, power line filters, and our recently developed motor line feed thru ("MLFT") filters. Sales of signal and power integrity components for the second quarter and first half of fiscal 2005 were $13.6 million and $25.8 million, respectively, compared to the second quarter and first half of fiscal 2004 sales of $17.2 million and $31.9 million, respectively. In fiscal 2005, product sales for this business segment have been negatively impacted by the overall weak market conditions throughout the passive electronic components industry. Although these market conditions have recently demonstrated some signs of improvement, the current business environment for passive components remains unpredictable.

Our RF and Microwave Components and Systems Business (formerly known as our Frequency Control Products Group) designs and manufactures ceramic resonators and bandpass filters, ceramic patch antennas, duplexers, lumped element filters, cavity filters, waveguides, amplifiers, frequency mixers, oscillators, synthesizers, multiple channel filter banks, and related products and systems. Sales for this business segment were $10.2 million in the current quarter, up $6.6 million from the same period last year. Of this $6.6 million increase, $6.0 million was generated by the impact of our two recent acquisitions. Although our RF and microwave components and systems are used in numerous industries and applications, sales in the military/aerospace sector have been particularly strong throughout fiscal 2005.

Our Power Management Systems Business designs and manufactures circuit breaker panels, custom power outlet strips, and our Smart Start power management systems. Sales of these products amounted to $2.1 million in the second quarter of 2005, compared to $699,000 in the second quarter of 2004. For the first half of fiscal 2005, sales of our power management systems were $3.5 million, up $2.2 million from a year ago. These advanced systems are used in various infrastructure equipment including wireless base stations, optical networks, IT hubs, data centers, and certain military applications. Since the introduction of these products a few years ago, we have begun to gain customer recognition and market share.

Current Business Outlook

Mr. Southworth stated, "Overall market conditions remain unpredictable, with extremely short lead times and limited visibility from customers. Based on our current assessment of customer demand and our existing customer order backlog, we presently expect our 2005 third quarter sales to be $26.0 to $26.5 million. If this shipment level is attained in the third quarter, we would expect our profitability to be approximately 10 to 11 cents per share. For the third quarter last year, we had total consolidated sales of $20.2 million and earnings of eight cents per share. On a long-term basis, we firmly believe that the Company is strategically positioned for dynamic growth and enhanced shareholder value," he concluded.

Forward-Looking Information

This press release contains statements that are forward-looking statements within the meaning of the Private Securities Reform Act of 1995. These statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict.

Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors and risks discussed from time to time in the Company's Securities and Exchange Commission filings and reports. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.

Simultaneous Webcast and Teleconference Replay

Spectrum Control, Inc. will host a teleconference to discuss its second quarter results on Thursday, June 16, 2005, at 4:45 p.m., Eastern Time. Internet users will be able to access a simultaneous webcast of the teleconference at www.spectrumcontrol.com or www.vcall.com. A taped replay of the call will be available through June 17, 2005 at 877-660-6853, access account 286, conference 156826, or for 30 days over the Internet at the Company's website.

About Spectrum Control

Spectrum Control, Inc. designs and manufacturers a wide range of components and systems used to condition, regulate, transmit, receive, or govern electronic performance. Although Spectrum Control products are used in many industries worldwide, the Company's largest markets are telecommunications equipment and military/aerospace. For more information about Spectrum Control and its products, please visit the Company's website at www.spectrumcontrol.com.