L-3 Communications Completes Acquisition of SAM Electronics GmbH

Business Wire, Jan 31, 2006

NEW YORK -- L-3 Communications (NYSE: LLL) announced today it has completed the acquisition of SAM Electronics GmbH for approximately $150 million in cash. The acquired business, renamed L-3 SAM Electronics GmbH (L-3 SAM), is expected to add approximately $290 million to L-3's sales for 2006 and be slightly accretive to L-3's earnings. L-3 SAM will report to L-3's Power and Control Systems Group and will be included in L-3's Specialized Products reportable segment.

Headquartered in Hamburg, Germany, L-3 SAM is a manufacturer and supplier of maritime electrical and electronic systems to shipyards, shipping companies, international navies and commercial shipyards. The business' products include electrical power packages, electric drives and propulsion systems, automation systems, navigation and communication equipment and maritime services. The company also provides turnkey installation of its products. L-3 SAM's substantial market share in commercial shipbuilding is a major expansion of L-3's customer base and adds to L-3's communication product offerings for military and commercial use.

Headquartered in New York City, L-3 Communications is a leading provider of Intelligence, Surveillance and Reconnaissance (ISR) systems, secure communications systems, aircraft modernization, training and government services. The company is a leading merchant supplier of a broad array of high technology products, including guidance and navigation, sensors, scanners, fuzes, data links, propulsion systems, simulators, avionics, electro optics, satellite communications, electrical power equipment, encryption, signal intelligence, antennas and microwave components. L-3 also supports a variety of Homeland Security initiatives with products and services. Its customers include the Department of Defense, Department of Homeland Security, selected U.S. Government intelligence agencies and aerospace prime contractors.

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

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Except for historical information contained herein, the matters set forth in this news release are forward-looking statements. Statements that are predictive in nature, that depend upon or refer to events or conditions or that include words such as "expects," "anticipates," "intends," "plans," "believes," "estimates" and similar expressions 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 recent filings, including Forms 10-K and 10-Q, with the Securities and Exchange Commission. The forward-looking statements speak only as of the date made, and the company undertakes no obligation to update these forward-looking statements.