Fairview, Pa, September 20, 2006 ----- Spectrum Control, Inc. (NASDAQ: SPEC), a leading designer and manufacturer of electronic control products and systems, today reported results for the third quarter ended August 31, 2006.

For the third quarter of fiscal 2006, the Company reported net income of $1,852,000 or 14 cents per share on sales of $33,232,000, compared to net income of $1,558,000 or 12 cents per share on sales of $25,901,000 for the same period last year. For the first nine months of fiscal 2006, the Company had net income of $3,871,000 or 30 cents per share (29 cents diluted) on sales of $90,676,000. For the comparable period of 2005, the Company had net income of $3,487,000 or 27 cents per share on sales of $72,925,000.

Dick Southworth, the Company's President and Chief Executive Officer, commented, "We are very pleased with our strong third quarter performance. During the current quarter, our sales increased by $7.3 million or 28% from the same period last year. Of this 28% increase, 16% arose from internal or organic growth and 12% reflects the impact of our recent acquisitions. Sales of our microwave products continue to be particularly strong with sales up $2.8 million from a year ago, as shipments of these components and systems for military/aerospace applications have sustained a solid growth rate. Sales of our signal and power integrity products increased by $1.4 million from the comparable quarter of last year, as overall market conditions throughout the passive electronic components industry have rebounded. Despite continuing to bear high material costs from purchasing ceramic components from third party suppliers, our operating margins continue to improve. For the current quarter, income from operations was 9.2% of sales, our second consecutive quarter of sequential improvement in fiscal 2006. Our third quarter net income was up 19% compared to the same period last year and at its highest level in nearly six years. With our new ceramic manufacturing facility in State College, Pennsylvania coming online substantially as planned, we believe our Company is well-positioned for continued growth and enhanced profitability."

Third Quarter Highlights

Business Segment Discussion

Our operations are currently conducted in four reportable segments: signal and power integrity components; microwave components and systems; power management systems; and sensors and controls.

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, power entry modules, power line filters, and our motor line feed thru (MLFT) filters. Orders for these products were $13.6 million in the current quarter, up 11% from a year ago. For the first nine months of fiscal 2006, customer orders for these products exceeded $46.0 million, an increase of $9.1 million or 25% from the same period last year. Customer demand for our EMI filter products has grown markedly over the last 12 months, reflecting improved market conditions throughout the passive electronic components industry. Sales of signal and power integrity components were $15.6 million in the third quarter of fiscal 2006, compared to $14.2 million in the same period last year. When our new State College ceramic manufacturing facility reaches full production, and it's no longer necessary to purchase ceramic components from third party vendors, we expect this business segment's operating margins and overall profitability to measurably improve.

Our Microwave Components and Systems Business designs and manufactures microwave filters, waveguides, amplifiers, frequency mixers, oscillators, synthesizers, multiple channel filter banks, and related products and integrated assemblies. Customer orders for microwave components and systems were $9.6 million for the three months ended August 31, 2006 and $31.6 million for the nine month period then ended. Customer orders for the comparable period of fiscal 2005 were $11.2 million and $31.1 million, respectively. With a significant portion of our microwave business being military-related, the receipt of specific orders under large ongoing programs may vary from quarter to quarter. Overall shipments for this business segment remain very strong, with sales of $12.7 million in the current quarter, up $2.8 million or 28% from the same quarter last year. Sales for this business segment were $36.7 million for the nine months ended August 31, 2006, an increase of $9.0 million or 32% from the comparable period of fiscal 2005.

Our Power Management Systems Business designs and manufactures breaker and fuse interface panels, custom power outlet strips, and our Smart Start power management systems. Customer orders for these systems amounted to $1.1 million in the current quarter, versus $1.5 million in the comparable quarter last year, as certain telecom customers work through temporary excess inventories. Sales of our power management systems remained relatively stable at $1.7 million in the current period as well as the comparable period of fiscal 2005. On a long-term basis, we continue to be optimistic about the growth potential of these advanced systems which are used in various infrastructure equipment including wireless base stations, optical networks, IT hubs, data centers, and certain military applications.

Our newly created Sensors and Controls Business currently designs and manufactures rotary and linear precision potentiometers, temperature sensing probes, thermistors, resistance temperature detector sensors, and related assemblies. In the current quarter, customer orders for these products were $3.3 million and sales were $3.1 million, reflecting the successful integration of our recent acquisitions of ATP in July 2006 and JDK Controls, Inc. in October 2005. On a year-to-date basis, customer orders for these sensor and control products have amounted to $8.4 million, with aggregate sales of $6.9 million.

Current Business Outlook

Mr. Southworth continued, "Based on our current customer order rates and sales order backlog, we expect our fourth quarter revenues to approximate $34 million, which would be an increase of nearly 34% from the fourth quarter of a year ago. During the fourth quarter, we anticipate that the improvement in operating margins from the substantial restoration of internal ceramic manufacturing will be partially offset by final purchases and consumption of certain third party supplied ceramics. Despite some continued high material costs during this transition period, we expect our fourth quarter earnings to be in the range of 17 to 19 cents per share. With the complete reestablishment of our own ceramic manufacturing capabilities expected by the end of the first quarter of fiscal 2007 and our solid foundation of complementary businesses, we believe we are strategically positioned for continued dynamic revenue growth and greater profitability."

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 press release.

Simultaneous Webcast and Teleconference Replay

Spectrum Control, Inc. will host a teleconference to discuss its third quarter results on Wednesday, September 20, 2006, 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 September 21, 2006 at 877-660-6853, access account 286, conference 214607 or for 30 days over the Internet at the Company's website.

About Spectrum Control

Spectrum Control is a leading designer and manufacturer of components and systems used to condition, regulate, transmit, receive, or govern electronic performance. The Company's largest markets are military/aerospace and telecommunications equipment, with applications in secure communications, smart weapons and munitions, missile defense systems, avionic upgrades, wireless base stations, broadband switching equipment, and global positioning systems. Automotive represents an emerging market for the Company's products, with significant applications in DC motors, telematics, and electronic safety controls. Other markets for the Company's products include medical instrumentation, industrial equipment, computers, and storage devices.

For more information about Spectrum Control and its products, please visit the Company's website at www.spectrumcontrol.com.