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L-3 Communications Awarded $11 Million Contract to Provide Cryptographic Unit to Lockheed Martin for Mobile User Objective System; L-3 to Provide TRANSEC COMSEC Unit for Tactical Satellite Communications System

Posted on: Tuesday, 4 October 2005, 09:00 CDT

L-3 Communications (NYSE: LLL) announced today that its Communication Systems-East (L-3 CS-East) division has been awarded a contract by Lockheed Martin (NYSE: LMT) to design and develop the TRANSEC COMSEC Unit (TCU) for the Mobile User Objective System (MUOS), a next-generation narrowband tactical satellite communications system that will provide significantly improved and assured voice, video and data communications for the mobile warfighter. Lockheed Martin Space Systems, Sunnyvale, CA, is the prime contractor and system integrator for MUOS, which will replace the current narrowband tactical satellite communications system known as the Ultra High Frequency Follow-On (UFO) system. The U.S. Navy's Communications Satellite Program Office, based in San Diego, CA, is the government agency responsible for acquiring MUOS and narrowband satellite communications for the Department of Defense (DoD).

The value of the initial contract award to L-3 Communications is approximately $11 million for delivery of the first two flight units and a spare flight unit in 2007. L-3 CS-East will provide the crypto units to Lockheed Martin facilities in Newtown, PA, where MUOS satellites will be developed. Three production options, if exercised, would be valued at an additional $6 million.

"The MUOS program is a great win for L-3 as it expands our space-based cryptographic products to a new platform," said Greg Roberts, president of L-3 CS-East. "This win builds upon L-3's long heritage of developing cryptographic equipment for the U.S. Government. Additionally, it allows L-3 to leverage critical internal technical investments that have been made to position itself for the U.S. Government's Crypto Modernization Initiative."

L-3 Communication Systems-East, based in Camden NJ, designs, develops, produces and integrates communication systems and support equipment for government and commercial space, ground, air and naval operations. Additionally, L-3 Communication Systems-East is a leading supplier and developer of Type 1 secure solutions that support the government's overall Crypto Modernization Initiative. L-3 Communication Systems-East is a division of L-3 Communications.

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.

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 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.

Source: Business Wire

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