PHAZAR CORP to Discontinue Mesh Development Program

PHAZAR CORP,

After a thorough review of the progress and status of the True Mesh Network Radio program, the Board of Directors on January 4, 2011 concluded that commercial viability and profitability was unlikely to be achievable in the foreseeable future and voted to discontinue further development. As a result a discontinued business expense estimated to be less than $600,000 will be recognized in the third fiscal quarter ended March 31, 2011.