RF INDUSTRIES,
      LTD.
            For Immediate
      ReleaseRF Connector &
      Cable Assembly / RF WirelessInvestor
      Contact:
              Neil
      Berkman Associates
              (310)
      826 - 5051
              info@berkmanassociates.com
            
            Company
      Contact:

              Howard
      Hill, President
              (858)
      549-6340
              rfi@rfindustries.com






RF
Industries Third Quarter Sales Increase 28%;
 Net
Income is $0.10 Per Share vs $0.00
 
 Nine
Month Sales Advance 9%; Net Income Doubles to $0.25 Per Share
 
 Company
Reinstates $0.03 per Share Quarterly Dividend
 
 
 SAN DIEGO, CA -- September 13,
2010 -- RF INDUSTRIES, LTD.,
(NASDAQ:RFIL) today announced that for the third quarter of fiscal 2010
ended July 31, 2010, sales increased 28% to $4,230,000, compared to $3,294,000
in the same quarter last year.  Net income was $312,000, or $0.10 per
diluted share, after non-cash expenses for the write-off of Neulink inventory
and goodwill impairment related to the Aviel acquisition of $248,000 and
$137,000, respectively.  This compares to net income in the third
quarter last year of $10,000, or $0.00 per diluted share, after a $210,000
non-cash expense for the write-off of goodwill primarily associated with the
acquisition of RadioMobile.  As a consequence of the goodwill
impairment charges, the Company no longer carries any goodwill on its balance
sheet.
 "Strong
sales gains at the RF Connector and Cable Assembly Division and at Bioconnect
combined to lift total Company sales 28%, generating a 48% overall gross margin,
even after the effect of the non-cash $248,000 Neulink inventory charge,
compared to a 49% gross margin in the third quarter last year.  The
strong sales, coupled with tight cost controls, reduced engineering, selling and
administrative expenses to 37% of sales, compared to 48% of sales in the same
quarter last year.  Our operating cash flow was approximately $900,000
in the quarter, nearly double our cash flow of approximately $470,000 in the
same quarter last year", said Howard Hill, President and CEO of RF
Industries.
 "With the
fourth quarter off to a good start and considering RFI's strong results for the
first nine months of fiscal 2010, the Board of Directors reinstated the
Company's $0.03 per share quarterly cash dividend, payable October 15, 2010 to
shareholders of record on September 30, 2010.  The reinstatement of
our regular quarterly cash dividend is not expected to interfere with RFI's
capital requirements for growth, capital expenditures or potential
acquisitions," said Hill.
 
 Third
Quarter Review
 For the
three months ended July 31, 2010, RF Connectors and Cable Division sales
increased 28% to $3,546,000 from $2,766,000 in the third quarter last
year.  Operating income more than doubled to $683,000 from $313,000 in
the same period last year and gross margin for this division improved to 56%,
compared to 52% of sales, in the same period last year.
 RFI's
Medical Cabling Division, Bioconnect, achieved a 62% increase in sales to
$563,000 from $347,000 in the third quarter last year.  Bioconnect's
operating income more than tripled to $153,000 from $47,000 in the same period
last year and gross margin increased to 42%, compared to 31% of sales in
the same quarter last year.
 RF
Wireless' market continues to be affected by the slowdown in public safety
wireless capital goods expenditures.  Sales declined 34%, to $120,000
compared to $181,000 in the third quarter last year.  Operating
results were affected by the Neulink inventory write-off and RadioMobile
goodwill impairment expense of $248,000 and $137,000, respectively.
 
 (more)
   7610
Miramar Road, San Diego, CA  92126-4202  ●  (858)
549-6340  ●  (800) 233-1728  ●  FAX
(858) 549-6345
 E-mail:
rfi@rfindustries.com  ●  Internet:
www.rfindustries.com
  
 RF
Industries Third Quarter Sales Increase 28%; Net Income is $0.10 Per Share vs
$0.00
 September
13, 2010
 Page
Two
  
 Nine
Months Review
 For the
nine months ended July 31, 2010, sales increased 9% to $11,321,000 compared to
$10,401,000 in the same period last year.  Net income for the nine
month period doubled to $785,000, or $0.25 per diluted share, compared to
$388,000, or $0.12 per diluted share, for the first nine months of fiscal
2009.  Cash flow from operations for the first nine months of fiscal
2010 was $2,079,000 compared to $932,000 for the same period in
2009.
 RF
Connectors and Cable Division sales increased 10% to $9,719,000 from $8,831,000
for the first nine months last year.  Operating income increased 61%
to $1,700,000 from $1,057,000 in the same period last year and gross margin for
this division improved to 55%, compared to 52% of sales, in the same period last
year.
 Bioconnect
sales increased 46% to $1,346,000 from $924,000 for the first nine months last
year.  Operating income jumped to $297,000 from $13,000 in the same
period last year and gross margin was 38%, compared to 21% of sales in the same
period last year.
 RF
Wireless sales were off 60% to $256,000 from $647,000 for the same period last
year. Gross margin was affected by reduced sales and the Neulink inventory
write-off.  Operating income was also affected by the goodwill
write-down for the acquisition of RadioMobile.  In combination, these
non-cash charges of $385,000 increased RF Wireless' operating loss to $756,000,
compared to an operating loss of $620,000 for the same period last
year.
 As of
July 31, 2010, RFI reported cash and cash equivalents of $1,581,000 and
investments in short and long-term certificates of deposits of $8,075,000 for a
total of $9,656,000 in liquid, short-term and long-term capital resources,
working capital of $15,153,000, a current ratio of 14 to 1, no long-term debt
and stockholders' equity of $16,206,000, or $5.68 per share.  In
fiscal 2009, RFI repurchased over 380,000 shares of common stock at an average
cost of approximately $4.20 per share.  No common stock has been
repurchased in the current fiscal year to date.
 
 About
RF Industries
 RF Industries conducts operations
through six related divisions.  The RF Connectors and
Cable Assembly segment designs and distributes radio frequency (RF) coaxial
connectors and cable assemblies used for Wi-Fi, PCS, radio, test instruments,
computer networks and antenna devices.  This business segment includes
Aviel
Electronics, which provides custom microwave and RF Connector solutions to
aerospace, OEM and Government agencies and Oddcables.com,
formerly known as Worswick, which provides coaxial connectors and cable
assemblies primarily to retail and local multi-media and communications systems
customers.  Bioconnect, which
constitutes the Medical Cabling and Interconnector segment, designs,
manufactures and distributes specialized electrical cabling and interconnect
products to the medical monitoring market.  The RF Wireless segment
includes Neulink, which
designs and markets wireless digital data transmission products for industrial
monitoring, wide area networks, GPS tracking and locations systems and RadioMobile, an OEM
provider of end-to-end mobile wireless network solutions for public safety,
emergency medical, transportation and industrial customers.
 
 Safe
Harbor Statements under the Private Securities Litigation Reform Act of
1995.
 The
statements contained in this release which are not historical facts may be
deemed to contain forward-looking statements with respect to future events, the
occurrence of which involve risks and uncertainties, including, without
limitation, increased competition, and other uncertainties detailed in the
Company's Securities and Exchange Commission filings.  All
forward-looking statements are based upon information available to the Company
on the date they are published and the Company undertakes no obligation to
publicly update or revise any forward- looking statements to reflect events or
new information after the date of this release.
 
 
 (tables
attached)
 #4739
 
 RF
      INDUSTRIES, LTD.CONDENSED
      STATEMENTS OF INCOME(in
      thousands, except per share and share amounts) (unaudited)Three Months
      Ended
                  
                  
                  Nine
      months EndedJuly
      31,
                  
                  
                  July
      31,2010
                  
                  
                  2009
                  
                  
                  2010
                  
                  
                  2009Net
      sales
                  
                  $
                  4,230
                  
                  
                  $
                  3,294
                  
                  
                  $
                  11,321
                  
                  
                  $
                  10,401Cost
      of sales
                  
                  
                  2,213
                  
                  
                  
                  1,670
                  
                  
                  
                  5,718
                  
                  
                  
                  5,409Gross
    profit
                  
                  
                  2,017
                  
                  
                  
                  1,624
                  
                  
                  
                  5,603
                  
                  
                  
                  4,992Operating
      expenses:Engineering
                  
                  
                  219
                  
                  
                  
                  256
                  
                  
                  
                  624
                  
                  
                  
                  806Selling and
      general
                  
                  
                  1,354
                  
                  
                  
                  1,340
                  
                  
                  
                  3,738
                  
                  
                  
                  3,736Total operating
      expenses
                  
                  
                  1,573
                  
                  
                  
                  1,596
                  
                  
                  
                  4,362
                  
                  
                  
                  4,542Operating
      income
                  
                  
                  444
                  
                  
                  
                  28
                  
                  
                  
                  1,241
                  
                  
                  
                  450Interest
      income
                  
                  
                  28
                  
                  
                  
                  23
                  
                  
                  
                  68
                  
                  
                  
                  149Income
      before provision for income taxes
                  
                  
                  472
                  
                  
                  
                  51
                  
                  
                  
                  1,309
                  
                  
                  
                  599Provision
      for income taxes
                  
                  
                  160
                  
                  
                  
                  41
                  
                  
                  
                  524
                  
                  
                  
                  211Net income
                  
                  $
                  312
                  
                  
                  $
                  10
                  
                  
                  $
                  785
                  
                  
                  $
                  388Earnings
      per shareBasic
                  
                  $
                  0.11
                  
                  
                  $
                  0.00
                  
                  
                  $
                  0.28
                  
                  
                  $
                  0.13Diluted
                  
                  $
                  0.10
                  
                  
                  $
                  0.00
                  
                  
                  $
                  0.25
                  
                  
                  $
                  0.12Weighted
      average shares outstandingBasic
                  
                  
                  2,850,928
                  
                  
                  
                  2,869,928
                  
                  
                  
                  2,850,210
                  
                  
                  
                  2,985,083Diluted
                  
                  
                  3,218,376
                  
                  
                  
                  3,161,904
                  
                  
                  
                  3,202,701
                  
                  
                  
                  3,278,509Dividends
      paid
                  
                  $
                  --
                  
                  
                  $
                  --
                  
                  
                  $
                  --
                  
                  
                  $
                  95
  
 RF
      INDUSTRIES, LTD.CONDENSED
      BALANCE SHEETS(in
      thousands, except per share and share amounts) (unaudited)July
      31,
                  
                  
                  October
      31,2010
                  
                  
                  2009ASSETSCURRENT
      ASSETS:Cash and cash
      equivalents
                  
                  $
                  1,581
                  
                  
                  $
                  1,226Certificates of
      deposit
                  
                  
                  7,328
                  
                  
                  
                  6,477Trade accounts receivable,
      net
                  
                  
                  1,982
                  
                  
                  
                  2,263Inventories
                  
                  
                  4,482
                  
                  
                  
                  4,985Other current
      assets
                  
                  
                  488
                  
                  
                  
                  341Deferred tax
      assets
                  
                  
                  478
                  
                  
                  
                  478TOTAL CURRENT
      ASSETS
                  
                  
                  16,339
                  
                  
                  
                  15,770Property
      and equipment, net
                  
                  
                  553
                  
                  
                  
                  566Long
      term certificates of deposit
                  
                  
                  747
                  
                  
                  
                  --Goodwill
                  
                  
                  --
                  
                  
                  
                  137Amortizable
      intangible asset, net
                  
                  
                  7
                  
                  
                  
                  27Note
      receivable from stockholder
                  
                  
                  67
                  
                  
                  
                  67Other
      assets
                  
                  
                  32
                  
                  
                  
                  31TOTAL
    ASSETS
                  
                  $
                  17,745
                  
                  
                  $
                  16,598LIABILITIES
      AND STOCKHOLDERS' EQUITYCURRENT
      LIABILITIES:Accounts
      payable
                  
                  $
                  353
                  
                  
                  $
                  225Accrued
      expenses
                  
                  
                  833
                  
                  
                  
                  673Income taxes
      payable
                  
                  
                  --
                  
                  
                  
                  75TOTAL CURRENT
      LIABILITIES
                  
                  
                  1,186
                  
                  
                  
                  973Deferred
      tax liabilities
                  
                  
                  51
                  
                  
                  
                  51Other
      long-term liabilities
                  
                  
                  302
                  
                  
                  
                  321TOTAL
      LIABILITIES
                  
                  
                  1,539
                  
                  
                  
                  1,345COMMITMENTS
      AND CONTINGENCIESSTOCKHOLDERS'
      EQUITY:Common
      stock - authorized 10,000,000 shares of $0.01 parvalue;
      2,850,928 and 2,848,313 shares issued and
outstanding
                  
                  
                  29
                  
                  
                  
                  28Additional paid-in
      capital
                  
                  
                  6,670
                  
                  
                  
                  6,502Retained
      earnings
                  
                  
                  9,507
                  
                  
                  
                  8,723TOTAL STOCKHOLDERS'
      EQUITY
                  
                  
                  16,206
                  
                  
                  
                  15,253TOTAL LIABILITIES AND
      STOCKHOLDERS' EQUITY
                  
                  $
                  17,745
                  
                  
                  $
                  16,598