WTT Wireless Telecom

Wireless Telecom Group, Inc. (AMEX: WTT) announced today results for the three months ended March 31, 2007. The Company reported net sales of $14,129,000, compared to $13,823,000 for the same period in 2006. Net income was $663,000, or $0.03 per diluted share, compared with $1,017,000, or $0.04 per diluted share, for the prior year. The change in net income reflects the decision to increase R&D spending in 2007, in order to expand the number of products concurrently in development. R&D expense was $2,039,000, compared to $1,617,000 for the prior year. Cash and cash equivalents were $9,958,000 at March 31, 2007, compared to $15,683,000 at December 31, 2006. In January, as previously reported, the Company repaid short-term debt of $5,372,000. Monty Johnson, CEO of Wireless Telecom Group, Inc., stated, �Our results for the first quarter were on plan with our expectations, driven by strong sales of our Willtek mobile terminal test, Boonton power meter and Microlab in-building wireless products. We continue to see demand for our solutions, as orders outpaced shipments. We are pleased with our consistent financial performance over the past several quarters, with each of our four product units now generating positive operational cash flow. This has enabled us to both reduce our short-term debt and confidently increase investment in our business in support of exciting global market opportunities. These increased investments are primarily in strategic product development, to further position us for emerging market initiatives such as the planned 3G wireless deployment in China. We will be announcing important new products throughout 2007 and 2008. As was the case in 2006, Asia is the home of our largest customer for the first quarter in terms of revenue to our company. We remain confident that our momentum in the region will continue to grow. We plan to continue our strategic pursuit of business there, especially related to the on-going expansion of mobile networks and the use across that region of advanced wireless technologies.� Wireless Telecom Group, Inc designs and manufactures a variety of products serving the global wireless and telecommunications markets. Comprised of four business groups brought together through acquisitions, Noise Com, Boonton Electronics, Microlab/FXR, and Willtek, the group provides a complementary suite of RF and Microwave-based products, with a major portion focused on advanced telecom testing. Their products include peak power meters, precision noise generators, mobile phone testing solutions, and passive component solutions for cellular/mobile, WiFi, satellite, and other advanced communications networks, all critical enablers to the rapid growth in world-wide communications and computing solutions. This technological synergy has enabled Wireless Telecom Group, Inc. to become a full service supplier of both the commercial and military telecommunications industries. Wireless Telecom Group�s website address is http://www.wtt.bz. Except for historical information, the matters discussed in this news release may be considered "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include declarations regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual results. Such risks and uncertainties are identified in the Company's reports and registration statements filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2006. SELECTED FINANCIAL RESULTS (In thousands, except per share amounts) � Three months ended March 31, (unaudited) � 2007� 2006� Statement of Operations Data: Net sales $ 14,129� $ 13,823� � Gross profit 7,626� 7,542� � Operating expenses Research and development 2,039� 1,617� Sales and marketing 3,000� 2,859� General and administrative � 1,797� � 1,914� Total operating expenses 6,836� 6,390� � Interest and other (income) (74) (91) � Income before income taxes 864� 1,243� � Net income $ 663� $ 1,017� � � � Net income per common share: Basic $ .03� $ .04� � Diluted $ .03� $ .04� � Weighted average shares outstanding: Basic 25,854� 25,723� Diluted 25,970� 25,854� March 31, December 31, 2007� 2006� � Balance Sheet Data: Cash & cash equivalents $ 9,958� $ 15,683� � Working capital $ 22,922� $ 21,946� � Total assets $ 76,985� $ 83,329� � Total liabilities $ 19,319� $ 26,433� � Shareholders' equity $ 57,666� $ 56,896�