ORBIT/FR Reports Q3 Results

HORSHAM, Pa., Nov. 13, 2006 -- ORBIT/FR, Inc. (OTC Bulletin Board: ORFR), a leading producer of sophisticated, automated microwave test and measurement systems for the aerospace/defense, wireless communication, automotive, and satellite industries, today reported results for the three- and nine-month periods ended September 30, 2006.

The Company's revenues for the three months ended September 30, 2006 increased approximately 41% to $7.0 million, from $4.9 million for the three months ended September 30, 2005, and decreased approximately 4% from $7.3 million for the three months ended June 30, 2006. The Company's gross margin for the three-month period ended September 30, 2006 was 30% compared to 35%, and 26% for the three-month periods ended September 30, 2005 and June 30, 2006, respectively. The Company's operating income for the three months ended September 30, 2006 was $344,000, compared to $27,000 for the three months ended September 30, 2005, and $100,000 for the three months ended June 30, 2006. The Company's net income for the three months ended September 30, 2006 was $243,000 (or $0.04 per basic and diluted common share), compared to a net loss of $26,000 (or $0.00 per basic and diluted common share) recognized during the three months ended September 30, 2005, and compared to net income of $79,000 (or $0.01 per basic and diluted common share) for the three months ended June 30, 2006.

The Company's revenues for the nine months ended September 30, 2006 increased approximately 32% to $21.8 million, from $16.5 million for the nine months ended September 30, 2005. The Company's gross margin for the nine months ended September 30, 2006 was 29% compared to 32% the nine months ended September 30, 2005. The Company's operating income for the nine months ended September 30, 2006 was $800,000, compared to $193,000 for the nine months ended September 30, 2005. The Company's net income for the nine months ended September 30, 2006 was $612,000 (or $0.10 per basic and diluted common share), compared to a net income of $68,000 (or $0.01 per basic and diluted common share) recognized during the nine months ended September 30, 2005.

"I am pleased with the results of Q3. We benefited from strong business in both the defense and commercial wireless markets," commented Israel Adan, President and CEO of ORBIT/FR.

Except for historical information, the matters discussed in this news release may be considered "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include declarations regarding the current intent, belief or expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements, including those regarding the ability to obtain new contracts, and future profitability involve a number of risks and uncertainties that could materially affect actual results. Such risks and uncertainties are identified in the Company's reports and registration statements filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2005 and Forms 10-Q. This press release and all SEC filings are available at http://www.orbitfr.com/.

                                   ORBIT/FR, Inc.

                  UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
               (Amounts in thousands, except share and per share data)

                              Three Months Ended          Nine Months Ended
                        Sept. 30,  June 30,  Sept. 30,        Sept. 30,
                          2006       2006       2005       2006       2005

  Contract revenues      $6,964     $7,280     $4,926    $21,773    $16,470
  Cost of revenues        4,843      5,382      3,207     15,444     11,223
  Gross profit            2,121      1,898      1,719      6,329      5,247
  Operating expenses:
    General and
     administrative         653        749        635      2,175      1,793
    Sales and marketing     732        722        756      2,225      2,435
    Research and
     development            392        327        301      1,129        826
  Total operating
   expenses               1,777      1,798      1,692      5,529      5,054
  Operating income          344        100         27        800        193
  Other loss, net            (1)         6        (36)        51        (49)
  Income (loss) before
   income taxes             343        106         (9)       851        144
  Income tax expense
   (benefit)                100         27         17        239         76
  Net income (loss)        $243        $79       $(26)      $612        $68
  Basic and diluted
   earnings (loss)
   per share              $0.04      $0.01     $(0.00)     $0.10      $0.01

  Weighted average
   number
    common shares -
     basic and
      diluted         6,001,573  6,001,573  6,001,573  6,001,573  6,001,573
    common shares -
     basic and
      diluted         6,022,829  6,001,573  6,001,573  6,019,582  6,001,573

                                         September 30,    December 31,
  Selected Financial Data                    2006            2005
   (amounts in thousands)                (Unaudited)

  Cash and cash equivalents                 $3,754          $3,188
  Working capital                            5,135           4,598
  Total assets                              16,008          14,531
  Total liabilities, all current             8,678           7,813
  Stockholders' equity                       7,330           6,718