EXHIBIT 99.1



                        CELERITEK ANNOUNCES CASH DIVIDEND


(SANTA CLARA, CA) October 29, 2004 -- Celeritek, Inc. (Nasdaq: CLTK), announced
today that its board of directors has declared an extraordinary cash dividend of
$3.00 per share of common stock, payable on December 1, 2004, to shareholders of
record on November 17, 2004. Celeritek expects that Nasdaq will set the
ex-dividend date on December 2, 2004, the first business day following the
payable date.

Celeritek believes this distribution will be treated for federal income tax
purposes as a stock redemption in partial liquidation of Celeritek's business.
Accordingly, the distribution received by an individual shareholder should be
treated as being received in a sale or exchange of a portion of such
shareholder's stock, resulting in long-term or short-term capital gain or loss
depending on the shareholder's holding period and basis in the stock. Celeritek
also believes that corporate shareholders generally will be required to treat
the distribution as a dividend. Celeritek does not intend to request a private
letter ruling from the Internal Revenue Service or a formal tax opinion with
respect to the tax consequences of this distribution, and strongly urges all
shareholders to seek advice from their own tax advisors with respect to the
distribution.

In addition, the board of directors has authorized Celeritek's management to
seek shareholder approval of a 4 for 1 reverse split of the common stock.

ABOUT CELERITEK

Celeritek designs and manufactures GaAs semiconductor components used in defense
applications and commercial communications networks. Its GaAs semiconductor
components primarily consist of transmit solutions, including power amplifiers,
control devices, gain blocks and millimeter wave devices for use in defense and
commercial applications. Commercial semiconductor applications include wireless
communication network and satellite applications. For more information, visit
Celeritek's website at www.celeritek.com.