FOR IMMEDIATE RELEASE:                                       NEWS
July 2, 2001                                             OTC-VARL

           VARI-L COMPANY ANNOUNCES $10 MILLION CREDIT FACILITY
                     WITH WELLS FARGO BUSINESS CREDIT

DENVER, Colorado -- Vari-L Company, Inc. (OTC-VARL), a leading provider of
advanced components for the wireless telecommunications industry, today
announced a new three-year, $10 million credit facility with Wells Fargo
Business Credit, Inc.  The new facility replaces the prior credit
arrangement with Bank One Colorado, N.A.

The new facility consists of a $6.0 million revolving line of credit, a
term loan of up to $2.5 million and a $1.5 million capital expenditure
line.  The full agreement will be filed by Vari-L with the Securities and
Exchange Commission on Form 8-K.

"This event culminates several months of effort on the part of the teams
at Vari-L and Wells Fargo Business Credit," said Rick Dutkiewicz, chief
financial officer.  "We are very pleased with the terms of our new banking
relationship.  Wells Fargo has a strong reputation for supporting emerging
growth companies with innovative financing packages.  We view this
agreement as an expression of confidence by Wells Fargo in Vari-L's long-
range business prospects, and we look forward to working with our new
banking partner. We appreciate the patience and support Bank One provided
to facilitate this transaction."

Melody Stallings, vice president of Wells Fargo Business Credit, said, "We
are delighted with our new association with Vari-L Company.  We like their
position in the emerging wireless communications industry and are looking
forward to a mutually beneficial banking relationship."

Headquartered 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, Agere, Agilent Technologies, Digital
Microwave, Ericsson, Glenayre Technologies (Wireless Access), Boeing
Satellite Systems, Harris, Lockheed Martin, Lucent Technologies, Microwave
Data Systems, Mitsubishi, Motorola, NEC, NeoPoint, Netro, Nokia, Novatel
Wireless, Raytheon, 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 general
economic conditions in the United States and the overseas markets served
by the Company, 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.
Chuck Bland, President & CEO                         Jay Pfeiffer
Rick Dutkiewicz, CFO                                 303/393-7044
303/371-1560                                 jay@pfeifferhigh.com
www.vari-l.com