Frequency Electronics, Inc. (AMEX-FEI) received notice of termination from a customer of a $4 million production contract for fiber optic network receive/transmit modules.

The Company does not expect to incur any overall loss in connection with this termination. However, the Company has reduced revenues and earnings from this contract, which would otherwise have been recorded in the first quarter of fiscal 2002. Full results for the first quarter, which ended on July 31, 2001, are expected to be released within the next ten days.

About Frequency Electronics:

Frequency Electronics, Inc. designs, develops and manufactures high-technology frequency, timing and synchronization products for satellite and terrestrial voice, video and data telecommunications. For more information, visit www.frequencyelectronics.com.