Subject: [NEXTEL-1] RELM Wireless Announces First Quarter Financial Results

From: [email-masked]
Date: Fri, 16 May 2003 19:50:51 -0400

RELM Wireless Announces First Quarter Financial Results

Business Editors/High-Tech Writers

WEST MELBOURNE, Fla.--(BUSINESS WIRE)--May 15, 2003--RELM Wireless Corporation (OTC BB:
RELM) today announced its operating results for the first quarter ended March 31, 2003.

Revenue for the first quarter of 2003 was $3.6 million, compared with $4.7 million for the
same quarter last year, reflecting lighter demand from our principal customers in federal
and state government agencies. Revenues from the business and industrial market segment
were comparable to the same quarter last year.

First quarter net loss was $377,000, or ($0.04) per diluted share, compared with a net
loss of $1.0 million, or ($0.18) per diluted share, for the first quarter of the prior
year. The net loss for the first quarter of the prior year included a non-recurring loss
of $900,000 on notes receivable related to the 1997 sale of the Company's former paper
manufacturing subsidiary.
Gross profit margins for the first quarter improved to 30.0% compared with 28.6% for the
prior year. The improvement in gross margins resulted from lower product costs driven by
the implementation of strategic manufacturing relationships. The Company has also reduced
staffing and manufacturing support costs at its Florida operations.

Selling, general, and administrative costs (SG&A) for the first quarter improved by 3.1%
to approximately $1,366,000 compared with $1,410,000 for the same period last year. The
Company reduced employment and other expenses associated with certain headquarters
functions, while maintaining its investment in new product development.

David P. Storey, President and Chief Executive Officer commented: "As we anticipated in
our business plan, our first quarter showed marked year-over-year improvement. We believe
this trend will continue, as a result of new products and our new sales team."

"Significant to note is that our new digital APCO Project 25-compliant portable radio, the
BK Radio-branded DPH, was approved in March by the Federal Communications Commission
(FCC). The DPH has been added to our contract with the General Services Administration,
and is presently being evaluated by the Department of Interior for inclusion on its
contract. The DPH provides performance advantages compared to competitive products and is
significantly less expensive. We are looking forward to the introduction of additional
digital models later this year."

For over 55 years, RELM has manufactured and marketed two-way FM business-band radios as
well as high-specification public safety mobile and portable radios, repeaters and
accessories, base station components and subsystems. Products are manufactured and
distributed worldwide under RELM Communications, Uniden PRC and BK Radio brand names. The
company maintains its headquarters in West Melbourne, Florida and can be contacted through
its web site at www.relm.com or directly at 1-800-648-0947.

http://www.businesswire.com/cgi-bin/cb_headline.cgi?&story_file=bw.051503/231355304&directory=/google&header_file=header.htm&footer_file=

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