East Rutherford, NJ November 16, 2015 Tel-Instrument Electronics Corp. (Tel, Tel-Instrument or the Company) (NYSE MKT: TIK), a leading designer and manufacturer of avionics test and measurement solutions, today reported its financial results for the second quarter of fiscal year 2016 ended September 30, 2015.

Highlights

Revenues increased to $6.8 million, a 90% increase versus the comparable period of fiscal year 2015.

Operating income increased to $916k, a $1.2 million improvement versus second quarter of 2015.

Strong operating cash flow and significant improvement in cash balances.

Interest expense dropped 55% over the comparable period of the previous year due to new bank deal and lower balances.

Non-GAAP EBITDA of $964,465 or $0.30 per share.

? Tax accrual included in our GAAP accounting is a non-cash item due to Tels large tax NOL.

$519k warrant valuation increase due to trailing 12 months EBITDA doubling to over $2.4 million.

GAAP earnings per share of $0.06 per share, versus a loss of $0.08 per share in the comparable period of the previous year.

Revenues for the second quarter were $6,818,390, a 90% increase from $3,587,674 in the comparable period of fiscal year 2015. Gross margin for the quarter increased to $2,243,466 as compared to $869,344 for the same period last year. This gross margin improvement is primarily attributed to the increase in revenue levels and improved factory efficiency. Selling, general and administrative expenditures increased by $224k versus the comparable period ended September 30, 2014 due to profit sharing accruals and higher commission expenses. Research and development expenses decreased slightly from the comparable period ended September 30, 2014 despite continued investment in our next generation of avionics and communications test sets.