Exhibit 99

                 HERLEY ANNOUNCES THIRD QUARTER EARNINGS WILL BE
                    BELOW EXPECTATIONS AND ANALYST ESTIMATES

              Third Quarter EPS expected to be approximately $0.11


Lancaster,  PA, June 5, 2006 - Herley Industries,  Inc. (Nasdaq:HRLY)  announced
today  that its  fiscal  2006  third  quarter  earnings  will be  below  Company
expectations  and analyst  consensus  estimates.  Earnings per diluted  weighted
average share are expected to be $0.11 for the third quarter of fiscal 2006.

John Kelley, Herley President,  said, "Two of our domestic divisions will report
third-quarter  losses  in  contrast  to  expectations  of  moderate  profits.  A
significant  portion of these  losses were caused by  non-recurring  engineering
investments that the Company believes will result in additional  business in the
coming year."

Mr. Kelley continued, "A review of our operations suggests that we may have been
too cautious in our approach to consolidating  facilities. We know the strengths
of each of our manufacturing facilities and we plan to move more aggressively to
eliminate   redundancies   within  the  Company  and  build  on  our  strengths.
Notwithstanding  our third  quarter  performance,  we are seeing  strength  in a
number of areas:

     -    Our  operations  in  Israel  and  the  United   Kingdom   continue  to
          strengthen. Herley Israel is having the best year in their history and
          EWST has been  successful  at winning  repeat  business  which  should
          improve their on-time delivery and profitability.

     -    We have  also  made  good  progress  with our  recent  large  domestic
          contract wins and we expect to continue our good batting average as we
          compete for new business.

     -    The major engineering programs which have dampened recent earnings are
          moving  forward,  and Herley will benefit in fiscal 2007 as they begin
          to enter the initial production phase of these projects.

     -    International orders to our domestic divisions are on an upward trend,
          and could reach  record  levels for the year.  Herley's  international
          business may reach 30% of our overall  sales,  and would act as a good
          hedge against the anticipated downturn in U.S. defense spending."






Herley Industries,  Inc. is a leader in the design,  development and manufacture
of  microwave  technology  solutions  for the  defense,  aerospace  and  medical
industries  worldwide.  Based in Lancaster,  PA,  Herley has nine  manufacturing
locations and more than 1000 employees. Additional information about the company
can be found on the Internet at www.herley.com


For information at Herley contact:                        Tel:  (717) 735-8117
Peg Guzzetti                                              www.herley.com
Investor Relations




Safe Harbor Statement - Except for the historical  information contained herein,
this  release  may  contain  forward-looking  statements.  Such  statements  are
inherently subject to risks and uncertainties.  When used in this report,  words
such as  "anticipated,"  "believes,"  "could,"  "estimates,"  "expects,"  "may,"
"plans,"  "potential" and "intends" and similar  expressions,  as they relate to
the  Company  or  its  management,  identify  forward-looking  statements.  Such
forward-looking  statements are based on the belief of the Company's management,
as well  as  assumptions  made by and  information  currently  available  to the
Company's  management.  The Company's  results could differ  materially based on
various  factors,  including,  but not limited to,  cancellation  or deferral of
customer  orders,  difficulties  in the  timely  development  of  new  products,
difficulties in  manufacturing,  increased  competitive  pressures,  and general
economic   conditions.   The  Company   undertakes   no   obligation  to  update
forward-looking statements as a result of future events or developments.