LCC International Announces Fourth Quarter and Full Year 2006 Results

Business Wire, March 12, 2007

Company's Transformation Leads To Gross Margins of 26.6%

MCLEAN, Va. -- LCC International, Inc. (NASDAQ:LCCI), a global leader in wireless voice and data turn-key services, today reported results for the fourth quarter and year ended December 31, 2006.

"We performed exceptionally well in 2006, both from a financial and operational perspective," said Dean Douglas, president and chief executive officer. "We have been prudent in managing the business - significantly improving gross margin, lowering expenses and, consequently, reducing our operating loss from continuing operations to $1.6 million in the 2006 year from nearly $8 million in 2005."

"Operationally, we made clear progress on each of our three key strategic goals aimed at reshaping LCC's business model and accelerating our growth," continued Douglas. "First, we were successful in expanding our market presence and extending our reach into new technologies associated with broadband-enabled services for end users. During the year we broadened our reach into Western Europe, invested in emerging markets and signed an important new service contract with TerreStar Networks to support the launch of that company's spectrum clearing services."

"We've also done well focusing on network services and engagements that drive higher margin revenues for LCC," added Douglas. "To achieve the strong gross margins we reported for the year, we sold our U.S. deployment business and Brazilian operations, transformed our operations in Italy and Spain to consulting and engineering services, and are beginning to engage in high-end consultative services with AWS auction participants. We also made significant progress in the third element of our strategy, which is to develop value-added, tools-based services. We launched TotalView[TM], a new category of tool based services, beginning with WiView[TM], a WiMAX based solution. We also entered into a strategic alliance with Zandan, a leader in mobile customer experience management, and initiated an end-user quality of service trial with STC to establish key interactions of tools-based services."

LCC's Recent Highlights

* Announced that all the shares of the Company's outstanding Class B Common Stock were converted on a one-for-one basis into shares of the Company's Class A stock. The conversion occurred as a result of the transfer of shares by RF Investors through a donation to The Raj and Neera Singh Charitable Foundation, Inc.

* Expanded its capabilities and services through a new services offering in spectrum management. This new business segment has already had a significant win with TerreStar Networks Inc., a subsidiary of Motient Corporation (MNCP). Under the terms of the agreement, LCC will manage the spectrum clearing of incumbents in a portion of the 2 GHz MSS band -- spectrum that is currently occupied by fixed microwave links.

* Acquired Belgium-based Detron Corporation BV. This acquisition extended LCC's global reach with the delivery of services in the Belgium and Luxemburg region. Focused on both wireless and fixed networks, Detron's offering aligns well with LCC and includes technical consultancy, deployment, performance, operations and maintenance and project management services to both public network and business customers. Detron Belgium is now operating as LCC Belgium.

* Launched ContentView[TM], the Company's new mobile content and end-user Quality of Experience solution as part of LCC's TotalView[TM] Service Delivery Platform. ContentView uniquely measures actual consumer experience, providing content providers, operators and handset manufacturers with real insight into end-user performance of mobile content services.

* Reaffirmed its success in building out LCC's WiMAX advanced solutions offering through the announcement of two separate service contract wins with a North American WiMAX carrier and a media entertainment company that combined represent an initial value of $2.4 million in 2007.

* Secured its growth strategy within the EMEA region through the purchase of the equity interests of Wireless Facilities, Inc.'s Europe, Middle East and Africa business.

Business Outlook

"Our plan for 2007 is to continue executing on our strategy to strengthen LCC's position as a high-end consultancy, engineering, Quality of Service (QoS) and Quality of Experience (QoE) testing and solutions provider on a global basis," said Douglas. "Just last week, we announced a strategic acquisition that supports this strategy. With the acquisition of WFI's EMEA business, we expect to increase the leverage of our existing operations to accelerate profitable growth in Europe, the Middle East and Africa. We now have the scale and presence combined with the leadership experience necessary to deliver a broader set of services to more customers."

2006 Financial Results

For fiscal year 2006, revenues from continuing operations were $130.0 million compared with $145.6 million in 2005. The decline is primarily the result of the Company's decision to reduce its dependence on lower margin work and focus its sales efforts on higher growth projects. Additionally, a seasonal slowdown in RF engineering activity contributed to the lower 2006 revenues in the fourth quarter as compared to the third quarter.