EXTENSION AGREEMENT

     This Extension Agreement (the "Extension Agreement") made as
of   the  1st  day  of    December,  1997  between  Regions  Bank
(formerly, First Alabama Bank), a state banking corporation  with
a  principal office located at Montgomery, Alabama (the "Lender")
and   Miltope  Corporation,  an  Alabama  corporation  with   its
principal  offices  located at Montgomery, Alabama,  and  Miltope
Business  Products,  Inc.,  a  New  York  corporation,  with  its
principal offices located at_Montgomery, Alabama (herein  jointly
and severally called the "Borrowers").

                            RECITALS:

     1     On  July  27,  1997, that certain Loan  Agreement  (as
heretofore  and  hereafter amended, (the  "Loan  Agreement')  was
executed  between the Lender and the Borrowers  providing  for  a
Revolving Credit Loan (as defined in the Loan Agreement)  in  the
amount of up to $15,000,000.

     2.    The  Loan  Agreement provides for  extensions  of  the
Revolving  Credit Loan term for successive periods of up  to  one
year  each  in  such  amounts as the Lender may  approve,  to  be
effected  by  execution by the Borrowers and  the  Lender  of  an
Extension Agreement in the form hereof.

     3.   The Loan Agreement has heretofore been extended through
May 31,
1998.

     4.    The  Lender  and the Borrowers, by execution  of  this
Extension Agreement, seek to further extend the Revolving  Credit
Loan for the period and in the amount hereinafter indicated.

                           AGREEMENTS:

     1.    Definitions. All capitalized terms used herein are  as
defined in the Loan Agreement unless otherwise stated.

     2.   Extension of Term and Amount. The Revolving Credit Loan
is  hereby  extended  as  provided in Section  2.7  of  the  Loan
Agreement  for  a period of one year, subject to  the  terms  and
conditions of the Loan Agreement. The maximum principal amount of
the  Revolving  Credit Loan outstanding at  any  time  shall  not
exceed  $15,000,000. The Termination Date of the Revolving Credit
Loan pursuant to this Extension Agreement is May 31, 1999 subject
to  prepayment and acceleration pursuant to the terms of the Loan
Agreement.

     3.     Ratification  of  Loan  Agreement.  The   terms   and
conditions of the Loan Agreement relating to the Revolving Credit
Loan,  including  the  Revolving  Credit  Note  Rate,  prepayment
provisions, and method of making advances are expressly  ratified
and  affirmed  hereby and shall apply with  the  same  force  and
effect to extensions of credit made during the initial term.

     4.   Security. It is expressly agreed, as provided in the
Loan Agreement, that any and all borrowing pursuant to this
Extension Agreement is secured according to the terms of such
Loan Agreement and all security documents executed in connection
therewith.

     IN WITNESS WHEREOF, the undersigned have caused this

instrument to be executed by their duly authorized officers on

this the 1st day of December, 1997.


                                 BORROWERS:

                                 MILTOPE CORPORATION
(SEAL)

ATTEST:                          By: /s/ George K. Webster
/s/  Edward F. Crowell               ---------------------------
--------------------------
Its  Secretary
                                 MILTOPE BUSINESS PRODUCTS, INC.
(SEAL)
                                 By:  /s/ George K. Webster
                                      --------------------------
ATTEST:
/s/  Edward F. Crowell
-------------------------
Its  Secretary
                                 LENDER:

                                 REGIONS BANK

(SEAL)                           By:  /s/ L.O. Farris Jr.
                                      --------------------------
ATTEST:                               Executive Vice President
/s/  Lee Clapp
--------------------------
Its  Senior Vice President

<PAGE>
                      CONSENT OF GUARANTOR

     The undersigned Miltope Group, Inc., a Delaware corporation

and a guarantor of the above-referenced Loan Agreement hereby

consents to the above Extension Agreement and acknowledges that

its guaranty of the obligations of the Borrowers under the Loan

Agreement remain in full force and effect.



     IN WITNESS WHEREOF, the undersigned has caused this

instrument to be executed by its duly authorized officers this

1st day of December, 1997.





                                 MILTOPE GROUP, INC.
(SEAL)


                                 By:  /s/  George K. Webster
ATTEST:                               ---------------------------
/s/  James Matthews
-------------------------
Its  CFO