L-3 Communications Acquires Two Leaders in Threat Detection for Military and Homeland Security Applications

Business Wire, March 21, 2006

NEW YORK -- State-of-the-art military and homeland security sensors from CyTerra Corporation and non-invasive security systems and portals from SafeView, Inc.

L-3 Communications (NYSE: LLL) announced today the acquisition of two companies that will add significant technologies to its broad range of military and homeland security products. L-3 has acquired CyTerra Corporation and SafeView, Inc. These acquisitions are both expected to be slightly accretive to L-3's earnings in 2006. The terms of these transactions were not disclosed.

"CyTerra and SafeView are initial steps in L-3's goal to consolidate the 'best of the best' high technology products companies in what is now a fragmented security market," said Frank C. Lanza, chairman and chief executive officer of L-3 Communications. "We believe that these are companies with superior technologies and advanced products that have significant growth potential. A synergistic product base to service a growing market, as well as marketing resources and research and development funding will enable CyTerra and SafeView, as part of L-3, to get to the next level."

"These two companies are leaders in threat detection technology and are highly synergistic with our existing Security and Detection Systems (S&DS) business," said Mr. Lanza. He noted that S&DS, with an installed base of more than 18,000 systems, is a leading supplier of mature and next-generation systems and technology products for aviation, rail and cargo screening, port and border inspection and facility and infrastructure security. L-3 also is a leader in intrusion detection and maritime and port security systems and products.

"Advanced security sensor technology will play a large part in products supporting homeland security and military markets across the board," continued Mr. Lanza, "and you will quickly see new L-3 products from the technologies that we are acquiring that are superior to anything on the market. These companies will also enable L-3 to provide total aviation and mass transportation security solutions to our customers."

"Funding for homeland security efforts will continue to accelerate, in light of the continuing terrorist threat," said Mr. Lanza. "We anticipate increased federal funding to supply products for border security, aviation checkpoints, maritime, cargo, port and mass transportation security and hazardous material storage." Mr. Lanza said that, going forward, there are many excellent companies started by scientists and engineers that could boost L-3's capabilities in a number of these areas.

Mr. Lanza also commented that L-3 will continue to serve as a merchant supplier of homeland security products to both domestic and international providers. The company will also seek to develop partnerships with other companies in the homeland security marketplace.

Mr. Lanza said that SafeView's and CyTerra's products lines, when combined with L-3's existing catalog of security checkpoint systems and scanners, enables L-3 to offer its customers a full complement of non-commodity high technology security products.

CyTerra Corporation

Headquartered in Orlando, FL and founded in 2000, CyTerra currently serves a broad customer base that includes the Transportation Security Administration (TSA), the Department of Homeland Security (DHS), the U.S. Army and Navy, the Defense Advanced Research Projects Agency (DARPA) and several foreign militaries. CyTerra is a leader in the development and manufacture of a number of sophisticated sensors for the military and homeland security markets. The company's threat detection capabilities include the AN/ PSS-14 next-generation U.S. Army mine detector, advanced through-wall radar and explosive detection sensors for checkpoints. Its products are used by the U.S. Army as their standard for portable land mine detection. CyTerra's explosives detection gateways and see-through building detectors are new products being introduced as first-of-breed next generation sensors.

CyTerra's advanced dual mode sensor is based on ground penetrating radar (GPR) and magnetic technology and is used for troop protection purposes, advanced landmine detection and state-of-the-art hidden motion detection sensors. The company manufactures the most advanced handheld portable mine detectors available, which can find metal and plastic mines in all soil types with the highest probability of detection and the lowest false alarm rate. CyTerra is the sole supplier of ruggedized handheld mine detection systems to the Department of Defense (DoD) and has delivered over 1,000 units under its existing contracts.

"CyTerra brings to L-3 a superior sensor capability that can be applied to several screening solutions that are far more advanced, significantly faster and lower in cost than other systems on the market," said Mr. Lanza. "When added to L-3's existing product line for port, cargo and rail security initiatives, as well as intrusion detection and perimeter security systems, L-3 has the broadest base of state-of-the-art detection systems in the industry."