L-3 Communications Receives Contract for an Advanced Satellite Communication System

Business Wire, Jan 31, 2000

Business/Technology Editors

NEW YORK--(BUSINESS WIRE)--Jan. 31, 2000

L-3 Communications (NYSE:LLL) announced that it has won a competitive award to develop an Advanced Extremely High Frequency Communications Security (COMSEC) and Transmission Security (TRANSEC) System, known as ACTS, for a new military satellite communication network by the Maryland Procurement Office. The initial contract value is $28.7 million.

This award provides for the development of state-of-the-art space, ground and embeddable cryptographic equipment that supplies both COMSEC and TRANSEC for the new AEHF satellite system. The new system will replace the existing MILSTAR system that provides survivable, worldwide secure communications connectivity via satellite, and increased communication capacity and additional cryptographic algorithm capability over the predecessor system. This system will also offer programming flexibility to adapt to future requirements.

&uot;This award continues our heritage of innovation, providing the US government and its allies with the most advanced secure communications equipment in the world,&uot; said ACTS program manager Ed Tyndall of L-3 Communication Systems- East. &uot;As the original developer of secure communications equipment for the current MILSTAR system, L-3 Communications has developed a significant legacy of excellence in this field. Our MILSTAR experience, coupled with our current Electronic Key Management and Secure Terminal Equipment programs provided a sound basis for this award.&uot;

L-3 Communication Systems-East will serve as the prime contractor for this program. L-3's Conic division will develop the Special Test Equipment for acceptance and depot testing of the ACTS equipment. Additional team members are Hughes Space and Communications Company of El Segundo, CA and Mykotronx, Inc. of Torrance, CA.

L-3 Communication Systems-East, based in Camden, NJ, designs, develops, produces and integrates communication systems and support equipment for commercial, space, ground, air and naval operations. L-3 Communication Systems-East is a division of L-3 Communications.

L-3 Conic, based in San Diego, CA specializes in the design and manufacture of airborne telemetry, command and control flight termination, space borne electronics, ground station command and control, range instrumentation and ground radio telecommunications products and systems. L-3 Conic is a division of L-3 Communications.

Headquartered in New York City, L-3 Communications is a leading merchant supplier of secure communications systems and products, avionics and ocean products, training products, microwave components and telemetry, instrumentation, space and wireless products. Its customers include the Department of Defense, selected US government intelligence agencies, aerospace prime contractors and commercial telecommunications and cellular customers.

To learn more about L-3 Communications, please visit the company's web site at www.L-3Com.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the matters set forth in this news release are forward-looking statements. The forward- looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including the risks and uncertainties discussed in the company's Safe Harbor Compliance Statement for Forward-looking Statements included in the company's final prospectus, dated February 4, 1999, which discussion is incorporated herein by this reference.