Ducommun Inc. Sells 3dbm Inc

Business Wire, August 7, 1998

LOS ANGELES--(BUSINESS WIRE)--Aug. 7, 1998--Ducommun Inc. (NYSE:DCO) Friday announced that it has entered into an agreement to sell the capital stock of its wireless communications subsidiary, 3dbm Inc., to COM DEV International Ltd. (TSE:CDV.) (ME:CDV.) for $17.25 million in cash.

The closing is subject to usual and customary conditions, including Hart Scott Rodino clearance. The transaction will result in an after-tax gain of approximately $5.5 million to $6.5 million, or 47 cents to 55 cents per diluted share, which will be recorded in the third quarter.

Joseph C. Berenato, Ducommun's president and chief executive officer, stated: "While we are proud of the talented management team we have built at 3dbm, the company continues to contribute less than 5 percent to Ducommun sales. In addition, it has become increasingly apparent that the level of investment required to ensure the long-term viability of 3dbm in the wireless systems infrastructure business was more than we were willing to commit, given the opportunities in our core aerospace businesses and 3dbm's lack of strategic importance to Ducommun.

"The proceeds from this transaction will be used for general corporate purposes, including aerospace acquisitions and common stock repurchases."

Founded in 1849, Ducommun Inc. manufactures components and assemblies for the aerospace and wireless telecommunications industries.

Except for the actual reported financial results, the statements made in this news release are forward-looking statements that involve risks and uncertainties. The company's future financial results could differ materially from those anticipated due to the company's dependence on conditions in the airline industry, the level of new commercial aircraft orders, the production rate for the Space Shuttle program, the level of defense spending, competitive pricing pressures, technology and product development risks and uncertainties, product performance, risks associated with acquisitions and dispositions of businesses, and other factors beyond the company's control.

    CONTACT: Ducommun Inc., Long Beach, Calif.
              Joseph C. Berenato, 562/951-1751
                 or
              Silverman Heller Associates
              Lori C. Parks, 310/208-2550