RF Industries to Acquire Cables Unlimited, Inc. for Cash and Stock of Approximately $5,600,000

RFI has agreed to acquire CUI for a purchase price of approximately $5,600,000, subject to working capital adjustments at the closing, payable half in cash and half in shares of unregistered RFI common stock. It is anticipated that RFI will pay approximately $2,800,000.
in cash and issue approximately 760,000 shares of common stock to the seller at closing.
Consummation of the merger is subject to various, customary closing conditions. The transaction is expected to close on or about June 15, 2011. Cables Unlimited's product line adds high value fiber-optic cabling and connector products to our own interconnect and wiring products. As a Corning Connections Gold supplier, CUI's warranted fiber-optic products will be in high demand from our distributors and customers who are very interested in adding fiber-optic products to their enterprise and carrier network customers. Cables Unlimited's connector, cable and wire harness product lines complements, adds geographic diversity and custom OEM accounts to RFI's customer base. Their modern
facilities will provide RFI with an East Coast presence, enabling improved services to our largest customers. We believe this acquisition will be accretive to RFI's earnings in the current fiscal year ending October 31, 2011, said Howard Hill, president and CEO of RF Industries.

Darren Clark, President and CEO of Cables Unlimited, Inc., said We are excited to be able to add RFI's line of RF coaxial cable products to our offerings and believe that our combined product line will enhance sales for both CUI and RF Industries. Many of our OEM customers have West Coast operations and this combination provides CUI with the opportunity to geographically expand our sales and OEM product line. We look forward to a long and profitable relationship.