Giga-tronics and Active Value Investors, LLC Close $500,000 Strategic Investment

Giga-tronics and Active Value Investors, LLC Close $500,000 Strategic
Investment

SAN RAMON, Calif., Feb. 26, 2013 (GLOBE NEWSWIRE) -- Giga-tronics Incorporated
(Nasdaq:GIGA), a leading provider of test and measurement equipment, today
announced that on February 25 it completed the previously announced private
placement of preferred stock to an affiliate of Active Value Investors, LLC
for gross proceeds of $500,000.

The Company has issued 3,425.65 shares of a new series of convertible
preferred stock at a price of $146.00 per share to Active Value Investors,
LLC.The preferred shares are initially convertible into 342,465 shares or
approximately 5.4% (after giving effect to the conversion) of the Company's
common stock, or the equivalent of $1.46 per share of common stock.The
convertible preferred stock are generally entitled to vote together with the
common stock on matters submitted to the Company's shareholders on an
as-converted basis.As part of the transaction, the parties also entered into
an Investor Rights Agreement providing for resale registration rights with
respect to certain shares of common stock issuable upon conversion of the
preferred stock and an Amended and Restated Warrant reducing the number of
shares issuable under a warrant held by the investor from 848,684 to 506,219.

The Company plans to use the investment proceeds primarily for research and
development of new products in its instrument business.

The Company has previously filed the Securities Purchase Agreement and
Certificate of Determination for the preferred stock on a Form 8-K and will
file the Form of Stock Certificate, Amended Warrant and Investor Rights
Agreement on a Current Report on Form 8-K to which investors should refer for
additional detail on the terms of the preferred stock and the investment.

About Giga-tronics Incorporated

Giga-tronics designs, manufactures, and markets various test and measurement
equipment used in the development, test, and maintenance of wireless
communications products and systems, flight navigational equipment, electronic
defense systems, and automatic testing systems worldwide.Its products are
primarily used in the design, production, repair, and maintenance of
commercial telecommunications, radar, and electronic warfare equipment.
Additional information may be found at http://www.gigatronics.com

Giga-tronics is a publicly held company, traded on the NASDAQ Capital Market
under the symbol "GIGA". Giga-tronics produces instruments, subsystems and
sophisticated microwave components that have broad applications in defense
electronics, aeronautics and wireless telecommunications.

The Giga-tronics Incorporated logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6087

About Active Value Investors, LLC

Active Value Investors, LLC ("AVI") is a private investment firm focused on
acquiring significant ownership stakes in undervalued publicly-traded
companies in the technology, media, and telecommunications sectors.AVI's
investment objective is to maximize value for its investors by investing in
companies whose market valuations are well below their "intrinsic value," and
to unlock value in those companies by encouraging the management to adopt
AVI's proposals.These proposals could include positive corporate actions,
such as privatization by the parent, management buyout, large-scale share
buyback and increased dividends.AVI often partners with management teams and
the board to accelerate their value creation initiatives. Additional
information may be found at http://www.activevalueinvestors.com

This press release contains forward-looking statements, concerning
Giga-tronics products, business prospects and profitability.Actual results
may differ significantly due to risks and uncertainties, such as future
orders, cancellation or deferral of orders, disputes over performance, the
ability to collect receivables and general market conditions.For further
discussion, see the most recent annual report filed by Giga-tronicson Form
10-K for the fiscal year ended March 31, 2012, Part I, under the heading
"Certain Factors Which May Adversely Affect Future Operations or an Investment
in Giga-tronics" and Part II, under the heading "Management's Discussion and
Analysis of Financial Condition and Results of Operations".

CONTACT: Giga-tronics Inquiries:
         Frank Romejko
         Vice President, Finance & Interim Chief Financial Officer
         (925) 302-1014

         Active Value Investors, LLC Inquiries:
         Darren C. Wallis, Co-Founder and Managing Partner
         (610) 710-4354
         dwallis@activevalueinvestors.com

         Active Value Investors, LLC Media Inquiries:
         Hedge Fund Solutions, LLC
         Damien Park
         (215) 325-0514
         dpark@hedgerelations.com

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