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                                  EXHIBIT 99.1

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NEWS RELEASE                                          Contact: Mark H. Cosmez II
                                 Vice President, Finance/Chief Financial Officer


            GIGA-TRONICS INCORPORATED ADOPTS SHAREHOLDER RIGHTS PLAN

San Ramon, California, October 15, 1998--Giga-tronics Incorporated today
announced that its Board of Directors has adopted a Shareholder Rights Plan
designed to assure that all Giga-tronics Shareholders would receive fair
treatment in any takeover of the Company. The Plan provides for the distribution
of one Right for each share of common stock outstanding on the record date of
November 10, 1998.

         In making the announcement, George H. Bruns, Jr., the Chairman and
Chief Executive Officer of Giga-tronics, stated: "The Rights are designed to
enable the Board of Directors to act effectively on behalf of Shareholders in
response to any takeover bid. The Plan is not intended to prevent or discourage
an offer for the Company that is commensurate with its value and is presented in
a manner permitting full review and negotiation." Mr. Bruns also noted that "the
Company has not received any unsolicited acquisition proposal at this time."

         The Rights Plan provides that in the event any person becomes the
beneficial owner of 15% or more of the outstanding common shares, each Right
(other than a Right held by the 15% Shareholder) will be exercisable, on and
after the close of business on the tenth business day following such event, to
purchase Giga-tronics common shares having a market value equal to two times the
then current exercise price (initially $12). The Plan further provides that if,
on or after the occurrence of such event, the Company is merged into any other
corporation or 50% or more of the Company's assets or earning power are sold,
each Right (other than a Right held by the 15% Shareholder) will be exercisable
to purchase common shares of the acquiring corporation having a market value
equal to two times the then current exercise price.

         The Rights expire on November 10, 2003 (unless previously triggered),
and are subject to redemption by the Board of Directors at $.001 per Right at
any time prior to the first date upon which they become exercisable to purchase
common shares.

         Giga-tronics will provide Shareholders with further details of the
Rights Plan in a letter to be mailed in the next several weeks.

         Giga-tronics designs, manufactures and markets an extensive line of
instruments and automatic test systems with broad application in wireless
communications, including cellular telephone, satellite transmission, aircraft
navigation, and electronic defense. It's recent acquisitions, Viking and
Ultracision, provide testing and handling equipment to the semiconductor
industry while Microsource manufactures a broad line of YIG tuned oscillators,
filters and microwave synthesizers.

         Headquartered in San Ramon, California, Giga-tronics is a publicly held
company, traded over the counter on NASDAQ National Market Systems under the
symbol "GIGA".