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RELM Wireless Receives Certificate of Award for Contract to be a Supplier of Two-Way Radio Communications Equipment to State of North Carolina

RELM Wireless Receives Certificate of Award for Contract to be a Supplier of Two-Way Radio Communications Equipment to State of

WEST MELBOURNE, Fla., May 3 /PRNewswire-FirstCall/ -- RELM Wireless Corporation today announced that it has received a certificate of award for a contract to be a supplier of two-way radio communications equipment to the state government of North Carolina. The contract is for equipment purchases of up to an estimated $2 million with an initial term of one year and two one-year renewal options. The contract includes a select group of suppliers who meet technical criteria established by the state, and does not specify purchase dates or quantities of equipment from any particular supplier.

RELM President and Chief Executive Officer, David Storey commented, "We are pleased to add the state of North Carolina to our growing contingent of state government customers. This award is a result of focused efforts to increase our penetration of the state government market and to meet increasing demand for P25 products."

Mr. Storey continued, "State and Federal governments continue to be key customers for our products, and we have intensified initiatives to establish new relationships, and once they are cultivated, to deliver quality products and service. We are committed to growing this important aspect of our business and will work hard to maximize the opportunity and ensure that the renewal options are exercised."

About APCO Project 25 (P25)

APCO Project 25 (P25), which requires interoperability among compliant equipment regardless of the manufacturer, was established by the Association of Public-Safety Communications Officials and is approved by the U.S. Department of Homeland Security. The shift towards interoperability has gained momentum as a result of the recent communications failures during the Oklahoma City bombings, 9/11 attacks and most recently Hurricane Katrina. RELM was one of the first manufacturers to develop P25-compliant technology.

About RELM Wireless

For six decades, RELM Wireless Corp. has manufactured and marketed high- specification two-way communications equipment for use by public safety professionals and government agencies, as well as radios for use in a wide range of commercial and industrial applications, including disaster recovery. Revolutionary advances include new interoperable, low-cost digital two-way radios compliant with APCO Project 25 technical specifications. Products are manufactured and distributed worldwide under BK Radio, RELM/BK and RELM product lines. The company maintains its headquarters in West Melbourne, Florida and can be contacted through its web site at http://www.relm.com/ or directly at 1-800-821-2900.

This press release contains certain forward-looking statements that are made pursuant to the "Safe Harbor" provisions of the Private Securities Litigation Reform Act Of 1995. These forward-looking statements concern the Company's operations, economic performance and financial condition and are based largely on the Company's beliefs and expectations. These statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors and risks include, among others, the following: reliance on contract manufacturers; heavy reliance on sales to the U.S. Government; federal, state and local budget deficits and spending limitations; limitations in available radio spectrum for use by land mobile radios; general economic and business conditions; changes in customer preferences; competition; changes in technology; changes in business strategy; the debt and inventory levels of the Company; quality of management, business abilities and judgment of the Company's personnel; and the availability, terms and deployment of capital. Certain of these factors and risks, as well as other risks and uncertainties, are stated in more detail in the Company's Annual Report on Form 10-K for the year ended December 31, 2006 and in the Company's subsequent filings with the SEC. These forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.

RELM Wireless Corporation

CONTACT: David Storey, President & CEO, RELM Wireless Corporation,
+1-321-984-1414, or investors, Jeffrey Goldberger of KCSA Worldwide,
+1-212-896-1249, or [email protected], for RELM Wireless Corporation

Web site: http://www.relm.com/

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