RELM Wireless Corp. (RWC) – U.S. Internal Revenue Service Issues Contract

WEST MELBOURNE, Fla., Dec. 8 /PRNewswire-FirstCall/ — RELM Wireless Corporation (NYSE: AMEX – RWC) today announced that it has been named as a contractor under a contract issued by the U.S. Internal Revenue Service (IRS). The contract is for the procurement of P25 digital two-way radios and related equipment by a broad range of federal government agencies such as the departments of Justice, Treasury, Commerce, Education, Transportation, Veterans’ Affairs, and numerous others. The maximum total value of the contract is $750 million and spans up to five years commencing on November 30, 2009. The contract includes a select group of companies, including RELM, that meet established criteria. The contract does not specify purchase dates or quantities of equipment from any particular supplier.

RELM President and Chief Executive Officer David Storey commented, “We are excited to add the IRS contract to our portfolio, which includes federal contracts related to the U.S. Department of Interior, the U.S. Department of Agriculture, the General Services Administration (GSA) and the U.S. Postal Service, as well as over 40 state contract vehicles. This contract is critical because it opens to us an impressive array of potential new customers and sales growth. All of our key P25 digital products are qualified under the contract, including both our long-trusted D-Series and new KNG-Series lines. With our recently expanded and enhanced product line, we believe our ability to effectively address the opportunities afforded us by this contract is greatly improved.”

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 toward interoperability gained momentum as a result of significant communications failures during events such as the 9/11 attacks and Hurricane Katrina. RELM was one of the first manufacturers to develop P25-compliant technology.

About RELM Wireless Corporation

As an American Manufacturer for more than 60 years, RELM Wireless Corporation has produced high-specification two-way communications equipment of unsurpassed reliability and value for use by public safety professionals and government agencies, as well as radios for use in a wide range of commercial and industrial applications. Advances include a broad new line of leading digital twoway radios compliant with APCO Project 25 specifications. RELM’s products are manufactured and distributed worldwide under BK Radio and RELM brand names. The Company maintains its headquarters in West Melbourne, Florida and can be contacted through its web site at www.relm.com or directly at 1-800-821-2900. The Company’s common stock trades on the NYSE Amex market under the symbol “RWC”.

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: risks relating to the current financial crisis and adverse economic conditions; 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 amid the financial crisis; 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 fiscal year ended December 31, 2008 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.