Giga-Tronics Announces $858,000 Strategic Investment Sponsored by Active Value Investors, LLC

Giga-Tronics Announces $858,000 Strategic Investment Sponsored by Active Value
Investors, LLC

SAN RAMON, Calif., June 28, 2013 (GLOBE NEWSWIRE) -- Giga-tronics Incorporated
(Nasdaq:GIGA), a leading provider of test and measurement equipment, today
announced the signing of a securities purchase agreement by an investment
vehicle sponsored by Active Value Investors, LLC ("AVI") that will yield gross
proceeds of approximately $858,000 to the Company. The transaction is
expected to close in early July.

Under the terms of the agreement, Alara Capital AVI II, LLC, an investment
vehicle under AVI ("AVI SPV"), will purchase approximately 5,111 shares of a
new Class D convertible voting perpetual preferred stock at a price of $143.00
per share, subject to certain closing conditions.The preferred shares will be
initially convertible into 511,186 shares of the Company's common stock. The
convertible preferred stock will be entitled to vote together with the common
stock on matters submitted to the Company's shareholders on an as-converted
basis.AVI SPV also will purchase a warrant to acquire up to 511,186
additional shares of common stock in the future at an exercise price of $1.43
per share.In addition, an existing warrant to purchase 506,219 shares of
common stock held by Alara will be cancelled and AVI SPV will purchase a new
warrant to acquire the same number of shares in the future at an exercise
price of $1.43 per share.As a result of these transactions, AVI SPV's
beneficial ownership of the Company's common stock (on a fully diluted basis)
will increase from 26.8% to 36.2%.

John Regazzi, Chief Executive Officer of Giga-tronics, said, "The continued
support from Active Value Investors demonstrates their belief in the Company's
future and gives me the confidence to continue the aggressive R&D efforts
associated with our new product platform." 

"About two years ago, Giga-tronics embarked on a road to refocus on growth and
profits," said Dr. Lutz Henckels, Director of the Company and an operating
partner of AVI. "To do so, the Company doubled its R&D expenses to
aggressively develop a new family of products. At the same time the company
absorbed a one-time expense of over half a million dollars to reduce its
expense structure by consolidating its Microsource division in Santa Rosa with
its Instrument division in San Ramon. We believe that the benefits of these
efforts will begin to be realized in the current fiscal year and we are
excited to have been a major contributor in transforming Giga-tronics'
business."

Dr. Joseph Thompson, a Director of the Company and a co-founder and Managing
Partner of AVI, added, "Giga-tronics is representative of the type of company
AVI seeks out for its portfolio – one with a core technology where our firm
can assist with operational enhancements and be the catalyst for value
creation."

Darren C. Wallis, co-founder and Managing Partner of AVI, stated, "Our
investment and active involvement in Giga-tronics is representative of AVI's
investment strategy – partnering with strong small-cap technology companies
that embrace our constructive approach towards value creation.We support the
Company's efforts to build long term shareholder value and are excited for its
future." 

The Company will file the securities purchase agreement, terms of the
preferred stock, the warrants and other related agreements 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.

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-tronics on 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:
         Steve Lance
         Vice President, Finance & Chief Financial Officer
         (925) 302-1056
         slance@gigatronics.com
        
         Active Value Investors, LLC Inquiries:
         Darren C. Wallis, Co-Founder and Managing Partner
         (610) 354-8396
         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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