THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Mercury Computer Systems, Inc. (MRCY)

10/14/2005 Proxy Information

The Corporation has arrangements with certain parties that do not meet the technical disclosure requirements of related parties and are not material in the aggregate. These individual arrangements either fall under reporting thresholds or are with non-immediate family members of executive officers of the Corporation. Notwithstanding that such arrangement falls under the reporting threshold, in July 2004, the Corporation entered into a consulting contract with David Bertelli, the brother of the Corporation’s CEO and former Senior Vice President, Organizational Development, under which the Corporation paid David Bertelli $30,000 for consulting services during fiscal year 2005 as well as $25,000 of life insurance premiums for the benefit of David Bertelli during fiscal year 2005.

10/1/2004 Proxy Information

Richard P. Wallace, a former member of the Corporation’s Board of Directors, who resigned as a director in September 2003, is a corporate officer of KLA-Tencor Corporation (“KLA-Tencor”). In the ordinary course of business, KLA-Tencor purchases products from the Corporation. In fiscal 2004, 2003 and 2002, revenues recognized by the Corporation from KLA-Tencor were $17,693,000, $8,924,000 and $2,735,000, respectively. As of June 30, 2004 and 2003, $5,831,000 and $471,000, respectively, were included in accounts receivable, representing amounts due from KLA-Tencor for purchases of the Corporation’s products. As of June 30, 2004, the Corporation had no amounts payable to KLA-Tencor.

In 1996, the Corporation entered into a contract with NDC Development Associates, Inc. (“Northland”) to perform design, development, permitting and management activities related to the construction of new corporate facilities. An officer and principal of Northland is an immediate family member of the Corporation’s chief executive officer. In January 2003, to assist with the design, permitting activities and oversight of the construction of a new facility, the Corporation entered into another agreement with Northland. The Corporation paid Northland fees of $251,000, $201,000 and $83,000 for fiscal 2004, 2003 and 2002, respectively. The Corporation owed no amounts to Northland as of June 30, 2004.

The Corporation has arrangements with other parties that do not meet the technical disclosure requirements of related parties and are not material in the aggregate. These individual arrangements either fall under reporting thresholds or are with non-immediate family members of executive officers of the Corporation.

10/14/2003 Proxy Information

Northland. In 1996, the Corporation entered into a contract with NDC Development Associates, Inc. (“Northland”) to perform design, development, permitting and management activities related to the construction of new corporate facilities. An officer and principal of Northland is an immediate family member of the Corporation’s Chief Executive Officer, James R. Bertelli. The Corporation entered into another agreement with Northland in January 2003, to assist with the design, permitting activities and oversight of the construction of a new facility. This current arrangement was subjected to a competitive pricing analysis and review by the Audit Committee of the Board of Directors to ensure that the terms of the arrangement are fair and no less favorable to the Corporation than could be obtained from unaffiliated parties.

The Corporation paid Northland fees of $200,619, $83,008 and $29,453 for fiscal year 2003, 2002 and 2001, respectively. The Corporation believes that these fees paid to Northland were made in the ordinary course of business on terms that were no less favorable to the Corporation than could have been obtained from unaffiliated parties. As of June 30, 2003, $25,049 was included in accounts payable for amounts owed to Northland by the Corporation. The Corporation owed no amounts to Northland as of June 30, 2002.

KLA-Tencor. Richard P. Wallace, a former member of the Corporation’s Board of Directors, is a corporate officer of KLA-Tencor Corporation (“KLA-Tencor”). In the ordinary course of business, KLA-Tencor purchases products from the Corporation. In fiscal year 2003, 2002 and 2001, revenues recognized by the Corporation from KLA-Tencor were $8.9 million, $2.7 million and $0.9 million, respectively. As of June 30, 2003 and 2002, $470,816 and $336,788, respectively, were included in accounts receivable and represented amounts due from KLA-Tencor for purchases of the Corporation’s products. As of June 30, 2003 and 2002, the Corporation had no amounts payable to KLA-Tencor. Mr. Wallace resigned from the Board of Directors in September 2003.

Other. The Corporation has arrangements with other parties that do not meet the technical disclosure requirements of related parties and are not material in the aggregate. These individual arrangements either fall under reporting thresholds or are with non-immediate family members of executive officers of the Corporation. The Corporation believes that the terms of these arrangements, which are based upon hourly rates for services performed, were fair and no less favorable to the Corporation than could have been obtained from unaffiliated parties.