Exhibit 99.1

For Further Information:
Peggy Smith                           Bryant Riley
Celeritek                             Celeritek Shareholder Protective Committee
(408) 986-5060                        B. Riley & Co.
                                      (310) 966-1444

Barrett Godsey
Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449

                   CELERITEK REACHES SETTLEMENT AGREEMENT WITH
                        SHAREHOLDER PROTECTIVE COMMITTEE

SANTA CLARA, Calif., May 19, 2003 - Celeritek, Inc. (Nasdaq: CLTK), a
manufacturer of GaAs semiconductor components for the wireless communications
market and GaAs-based subsystems for the defense market, and the Celeritek
Shareholder Protective Committee (CSPC) announced today that they have agreed to
settle their pending proxy contest.

Under the terms of the settlement, Celeritek will expand its board from six
directors to seven. The new board will be composed of:

      -     Three of Celeritek's current directors: Tamer Husseini, Charles
            Waite and Robert Gallagher;

      -     Three directors nominated by the CSPC: Bryant Riley, Lloyd I. Miller
            and Michael Targoff; and

      -     J. Michael Gullard, who is not affiliated with either the company or
            the CSPC. Mr. Gullard is general partner of Cornerstone Management,
            a venture capital and consulting firm that provides strategic focus
            and direction for technology companies primarily in the software and
            data communications industries. He is also chairman of the board of
            both Merant plc (Nasdaq: MRNT) and Netsolve, Inc. (Nasdaq: NTSL),
            and a director of JDA Software Group, Inc. (Nasdaq: JDAS). Mr.
            Gullard's 27 years in the technology industry include a number of
            executive and management posts at Telecommunications Technology Inc.
            and the Intel Corporation. He holds a master of business
            administration and a bachelor of arts degree from Stanford
            University.

The terms of the settlement also contemplate that at least one of the directors
nominated by the CSPC will be appointed to each committee of the company's
board, and that Mr. Riley will serve on the audit committee.

The Celeritek board also has agreed to create a strategy committee to explore
strategic alternatives available to the company, including repurchasing company
shares through an open market repurchase program, a self tender or otherwise,
and to make recommendations to the board regarding the company's strategic
alternatives. The strategy committee will be comprised of the company's
non-management directors.

Celeritek also will terminate the company's shareholder rights plan and, subject
to certain exceptions, the company will not implement a new rights plan at any
time prior to its 2004 annual meeting of shareholders.

Tamer Husseini, Celeritek's chairman and chief executive officer, said, "We are
pleased to be able to resolve this matter and remove the uncertainty created by
the proxy contest. Our

objective is to do what is right for our shareholders and we believe that our
agreement with the CSPC does just that.

"With the advice and assistance of our new directors, we will continue to focus
on delivering value to all of the company's shareholders. We will continue to
take the steps that we believe are in our shareholders' best interest and look
forward to reporting on our continued progress along the way," continued Mr.
Husseini.

Bryant Riley, chairman and chief executive officer of B. Riley & Co. and a
member of the CSPC, said, "We look forward to joining the board in its efforts
to pursue all options to increase shareholder value."

Celeritek and the CSPC have agreed to postpone the special meeting until May 28,
2003 so that the parties can draft and execute a definitive agreement
memorializing the terms of the settlement. Upon the execution of the definitive
agreement, the special meeting will be cancelled. In addition, the CSPC and its
members and related parties have agreed to various customary standstill
provisions, which will be in effect until the adjournment of Celeritek's 2004
annual meeting of shareholders.

ABOUT CELERITEK

Celeritek designs and manufactures GaAs semiconductor components and GaAs- based
subsystems used in the transmission of voice, video and data traffic over
wireless communications networks. Its GaAs semiconductor components and
subsystems are designed to facilitate broadband voice and data transmission in
mobile handsets and wireless communications infrastructures. Its GaAs
semiconductor components primarily consist of transmit solutions, including
power amplifiers for cellular and PCS handsets. These products are focused on
the high growth CDMA and emerging WCDMA wireless market. Celeritek provides its
GaAs-based subsystems to leading companies in the defense industry.

FORWARD-LOOKING STATEMENTS

This release contains forward-looking statements, including statements regarding
Celeritek's efforts to explore strategic alternatives and means by which the
company can enhance shareholder value. These forward-looking statements
represent Celeritek's expectations or beliefs concerning future events.
Celeritek undertakes no duty to update these forward-looking statements. Actual
results could differ materially from those projected in the forward-looking
statements as a result of known and unknown risk factors and uncertainties.
Please see the company's most recent Annual Report on Form 10-K and Quarterly
Report on Form 10-Q for a description of the risks facing the company's
business.