CONCORD, MA, November 27, 2000 – Technical Communications Corporation (NASDAQ: TCCO) today reported that revenues for its fiscal year ended September 30, 2000 were $5,574,000 compared to $6,434,000 for the previous year. The Company reported a net loss of $1,740,000 or $1.35 per share, compared to a net loss of $1,219,000 or $0.96 per share in fiscal 1999. The results for the quarter ended September 30, 2000 included revenues of $1,196,000 and a net loss of $725,000 compared to revenues of $2,753,000 and net income of $217,000 for the fourth quarter of fiscal 1999. The current quarter’s loss included a charge to write-down the Company’s net deferred tax asset by $608,000, due to continued losses affecting the Company’s ability to recognize future benefit from the carryforward of net operating losses.

TCC’s President and Chief Executive Officer Carl Guild stated " The results for fiscal 2000 are a mix of below plan revenues and profits and positive accomplishments in our efforts to broaden our product base in the commercially oriented international markets. Clearly, our sales revenues for fiscal 2000 fell below our expectations as reported a year ago. We had forecasted that international contracting delays would continue with an expected recovery in the latter half of 2000. This recovery is happening, but at a much slower pace than anticipated. We remain confident that we will be successful in winning these contracts currently under negotiation but the awards are not expected to be confirmed until the first half of 2001. "

"To offset the trend toward longer contracting periods and slower sales in foreign government areas, we have increased our marketing activity with a focus on new, larger projects which have the potential for higher sales volume and high probability for follow-on business. We are working to establish partnerships with system suppliers that will carry TCC’s products to the markets as part of a larger system solution. Three focus markets are encryption systems for aircraft, microwave ground links and mobile satellite communications. The results of the partnerships will expand TCC’s ability to reach more market opportunities in a shorter period of time and we expect to see results from these actions in 2001."

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"TCC continues on the course to expand into the international commercial markets and has launched product development and marketing initiatives in both the network and wireless areas. Our CipherONE™ network product line now covers link, frame relay and Internet protocol requirements and with the introduction of the FIPS 140 certified CX 7200 IP encryptor is now competing in the US federal market. We are also pursuing product development and relationships that will expand our network feature set to include firewall, traffic shaping and IPSEC compliant interoperability for the internet. The range of our product line is more attractive to foreign users and system developers as it provides a single source for proven security performance that is easily integrated into a system and can be customized to meet specific user needs. "

"The investment demands of re-orienting the company and the unusually protracted foreign procurement cycles have combined to adversely effect our financial results. Streamlining of the company has been an ongoing effort which has improved operational efficiency and is reflected in an improvement in gross margins. Product development will continue and is expected to increase as result of contract awards based upon the proposal and concept work that has been completed. The award of funded development projects will have a favorable effect on profitability and provide expanded opportunities for significant follow-on equipment sales."

TCC designs, manufactures, and supports superior grade secure communications systems that protect highly sensitive information transmitted over a wide range of data, voice and fax networks. TCC’s proven security solutions protect information privacy on every continent in over 100 countries. Government agencies, militaries, financial institutions, telecom carriers and multinational corporations worldwide rely on TCC to protect their communications networks.

Matters discussed in this news release, including any discussion of or impact, expressed or implied, on Technical Communications Corporation's (the Company) anticipated operating results and future earnings, including statements about the Company’s ability to achieve growth and profitability, contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended. The Company’s operating results may differ significantly from the results indicated by such forward-looking statements. The Company’s operating results may be affected by many factors, including but not limited to future changes in export laws or regulations, changes in technology, the effect of foreign political unrest, the ability to hire, retain and motivate technical, management and sales personnel, the risks associated with the technical feasibility and market acceptance of new products, changes in telecommunications protocols, the effects of changing costs, exchange rates and interest rates. These and other risks are detailed from time to time in the Company’s filings with the Securities and Exchange Commission, including the Form 10-K for the fiscal year ended October 2, 1999, Form 10-Q for the quarter ended January 1, 2000, Form 10-Q for the quarter ended April 1, 2000 and the form 10-Q for the quarter ended July 1, 2000.

                                                                                                                 Year ended:                                        Quarter ended:

                                                                                                  9/30/00                     10/2/99                     9/30/00                     10/2/99

Net sales                                                                                  $ 5,574,000               $ 6,434,000              $ 1,196,000               $ 2,753,000

Gross Profit                                                                                3,198,000                  3,305,000                    765,000                  1,230,000

S, G & A expense                                                                      3,874,000                   4,312,000                   726,000                     707,000

Product development costs                                                     1,157,000                  1,936,000                    237,000                    397,000

Operating profit (loss)                                                             (1,833,000)                (2,943,000)                (198,000)                   126,000

Other income (expense), net                                                       266,000                   1,318,000                    81,000                     163,000

Provision (benefit) for income taxes                                          173,000                    (406,000)                 608,000                       72,000

Net income (loss)                                                                     (1,740,000)                 (1,219,000)              (725,000)                    217,000

Net income (loss) per share

Basic                                                                                                $ (1.35)                       $ (0.96)                $ (0.56)                       $ 0.17

Diluted                                                                                             $ (1.35)                       $ (0.96)                $ (0.56)                       $ 0.17

                                                                                                                               9/30/00                                    10/2/99

Cash                                                                                                                $ 3,122,000                             $ 2,339,000

Accounts receivable, net                                                                                   364,000                                2,603,000

Inventory                                                                                                           3,452,000                                3,036,000

Other current assets                                                                                            427,000                                1,171,000

Total current assets                                                                                          7,365,000                                9,149,000

Property and equipment, net                                                                              569,000                                   680,000

Goodwill, net                                                                                                         468,000                                   683,000

Other assets                                                                                                              1,000                                   149,000

                                                                                                                          $ 8,403,000                           $ 10,661,000

Accounts payable                                                                                            $ 524,000                                $ 258,000

Accrued expenses and other current liabilities                                               598,000                               1,102,000

Total current liabilities                                                                                      1,122,000                              1,360,000

Other long-term liabilities                                                                                                -                                366,000

Total stockholders’ equity                                                                               7,281,000                             8,935,000

                                                                                                                           $ 8,403,000                        $ 10,661,000