FOR IMMEDIATE RELEASE:                                       NEWS
April 3, 2001                                            OTC-VARL

        VARI-L COMPANY EXTENDS FORBEARANCE AGREEMENT WITH BANK ONE

DENVER, Colorado - Vari-L Company, Inc. (OTC-VARL), a leading supplier of
advanced components for the wireless industry, today announced it has
extended its forbearance agreement with its primary lender, Bank One
Colorado, N.A., from March 31, 2001, to June 30, 2001.

Rick Dutkiewicz, chief financial officer, said that in conjunction with
the extension, the Company has agreed to make a $1.5 million payment to
Bank One in consideration of Bank One's willingness to extend the term of
the loan agreement. The total loan outstanding as of March 31, 2000 is
approximately $6.7 million.

"We are pleased that Bank One has agreed to an extension," said
Dutkiewicz.  "We continue to appreciate Bank One's cooperation during this
transition period."

The full agreement, as amended, will be filed with the Securities and
Exchange Commission on a Form 8-K.

Through its headquarters in Denver, Vari-L designs, manufactures and
markets wireless communications components that generate or process radio
frequency (RF) and microwave frequency signals.  Vari-L's patented
products are used in commercial infrastructure equipment (including
cellular/paging/PCS base stations and repeaters, fixed terminal point to
point/multi-point data radios including LMDS/MMDS), consumer subscriber
products (advanced cellular/PCS/satellite handsets, web-enabled smart
phones, 2-way pagers, wireless PDAs, home networking), and
military/aerospace platforms (satellite communications/telemetry, missile
guidance, electronic warfare, electronic countermeasures, battlefield
communications).  Vari-L serves a diverse customer base of the world's
leading technology companies, including Adaptive Broadband, Agilent
Technologies, Digital Microwave, Ericsson, Glenayre Technologies (Wireless
Access), Harris, Hughes, Lockheed Martin, Lucent Technologies, Microwave
Data Systems, Mitsubishi, Motorola, NEC, NeoPoint, Netro, Newbridge
Networks, Nokia, Northrop Grumman, Novatel Wireless, Raytheon, Samsung and
Siemens.

Some of the statements contained in this news release are forward-looking
statements.  The accuracy of these statements cannot be guaranteed as they
are subject to a variety of risks, including but not limited to the
success of the products into which the Company's products are integrated,
governmental action relating to wireless communications, licensing and
regulation, the accuracy of the Company's internal projections as to the
demand for certain types of technological innovation, competitive products
and pricing, the success of new product development efforts, the timely
release for production and the delivery of products under existing
contracts, and the outcome of pending and threatened litigation and
regulatory actions as well as other factors.

                                 CONTACTS:

Vari-L Company, Inc.         Pfeiffer High Public Relations, Inc.
Pete Pappas, CEO                                     Jay Pfeiffer
or                                                   303/393-7044
Rick Dutkiewicz, CFO                         jay@pfeifferhigh.com
303/371-1560                                 www.pfeifferhigh.com
www.vari-l.com