Exhibit A

      Tel-Instrument Electronics Corp. Announces GAO Protest to Navy Award

    CARLSTADT, N.J.--(BUSINESS WIRE)--Aug. 16, 2006--Tel-Instrument
Electronics Corp. (AMEX: TIK) was informed by the Navy that an
unsuccessful bidder on the Intermediate Level TACAN Testers (ITATS)
program has protested the previously announced award to TIK.
    In accordance with federal regulations, upon the filing of the
protest with the General Accounting Office (GAO), the Navy instructed
TIK to suspend its efforts on the contract until the matter is
resolved by the GAO. It is expected that a final GAO determination
will be made within 100 days. TIK has been provided with a redacted,
incomplete version of the protest which challenges the selection
process. Based upon the limited information available to date, TIK
does not believe, although no assurance can be given, that these
allegations have merit. TIK is closely following this situation and
will provide additional clarification when further information is
available.
    This press release includes statements that are not historical in
nature and may be characterized as "forward-looking statements,"
including those related to future financial and operating results,
benefits, and synergies of the combined companies, statements
concerning the Company's outlook, pricing trends, and forces within
the industry, the completion dates of capital projects, expected sales
growth, cost reduction strategies, and their results, long-term goals
of the Company and other statements of expectations, beliefs, future
plans and strategies, anticipated events or trends, and similar
expressions concerning matters that are not historical facts. All
predictions as to future results contain a measure of uncertainty and,
accordingly, actual results could differ materially. Among the factors
which could cause a difference are: changes in the general economy;
changes in demand for the Company's products or in the cost and
availability of its raw materials; the actions of its competitors; the
success of our customers; technological change; changes in employee
relations; government regulations; litigation, including its inherent
uncertainty; difficulties in plant operations and materials;
transportation, environmental matters; and other unforeseen
circumstances. A number of these factors are discussed in the
Company's previous filings with the Securities and Exchange
Commission. The Company disclaims any intention or obligation to
update any forward-looking statements as a result of developments
occurring after the date of this press release.
    Tel-Instrument is a leading designer and manufacturer of avionics
test and measurement solutions for the global commercial air
transport, general aviation, and government/military aerospace and
defense markets. Tel-Instrument provides instruments to test, measure,
calibrate, and repair a wide range of airborne navigation and
communication equipment. For further information please visit our
website at www.telinstrument.com.
    Innerspace Technology, Inc. (www.innerspacetechnology.com), a
division of the Company, designs, manufactures and distributes a
variety of shipboard and underwater instruments to support
hydrographers, oceanographers, researchers, engineers, geophysicists,
and surveyors worldwide.
    The Company's stock is traded in the American Stock Exchange under
the symbol TIK.

    CONTACT: Tel-Instrument Electronics Corp.
             Joseph P. Macaluso, 201-933-1600