WEST MELBOURNE, Fla., July 20 /PRNewswire-FirstCall/ -- RELM Wireless Corporation (Amex: RWC - News) today announced that it has been named as the exclusive subcontractor in a contract issued by a federal agency of the Department of Homeland Security to provide radio communications equipment to locations nationwide. The prime contractor has entered into a four-year exclusive requirements agreement with the agency effective immediately. Under its relationship with the prime contractor, RELM will exclusively supply APCO Project 25 digital and analog two-way radio equipment nationwide as directed by the prime contractor. The maximum value of the agreement is $3 million; it does not specify purchase dates or quantities of equipment. RELM expects to begin supplying equipment during the third quarter of 2006.

RELM President and CEO David Storey commented, "One of our chief business objectives for 2006 was to penetrate the homeland security market. Being named as the exclusive subcontractor for an agency of the U.S. Department of Homeland Security is a major accomplishment for RELM, reflecting the continued acceptance of our products, especially our digital P25-compliant BK Radio line of radios. In addition to developing products that differentiate themselves based on features, functionality, quality and cost, we have worked diligently to offer products that meet or exceed the rigorous standards of U.S. homeland security efforts."

About APCO Project 25 (P25)

APCO Project 25 (P25), which requires interoperability among compliant equipment regardless of the manufacturer, was established by the Association of Public-Safety Communications Officials and is approved by the U.S. Department of Homeland Security. The shift towards interoperability has gained momentum as a result of the recent communications failures during the Oklahoma City bombings, 9/11 attacks and most recently Hurricane Katrina. RELM was one of the first manufacturers to develop P25-compliant technology.

About RELM Wireless

For nearly six decades, RELM Wireless Corporation has manufactured and marketed high-specification two-way communications equipment for use by public safety professionals and government agencies, as well as radios for use in a wide range of commercial and industrial applications, including disaster recovery. Revolutionary advances include new interoperable, low-cost digital two-way radios compliant with APCO Project 25 technical specifications. Products are manufactured and distributed worldwide under BK Radio, RELM/BK and RELM product lines. The company maintains its headquarters in West Melbourne, Florida and can be contacted through its web site at http://www.relm.com or directly at 1-800-821-2900.

This press release contains certain forward-looking statements that are made pursuant to the "Safe Harbor" provisions of the Private Securities Litigation Reform Act Of 1995. These forward-looking statements concern the Company's operations, economic performance and financial condition and are based largely on the Company's beliefs and expectations. These statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors and risks include, among others, the following: reliance on contract manufacturers; heavy reliance on sales to the U.S. Government; federal, state and local budget deficits and spending limitations; limitations in available radio spectrum for use by land mobile radios; general economic and business conditions; changes in customer preferences; competition; changes in technology; changes in business strategy; the debt and inventory levels of the Company; quality of management, business abilities and judgment of the Company's personnel; and the availability, terms and deployment of capital. Certain of these factors and risks, as well as other risks and uncertainties, are stated in more detail in the Company's Annual Report on Form 10-K for the year ended December 31, 2005 and in the Company's subsequent filings with the SEC. These forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.