L-3 Communications Acquires AVISYS Options

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June 23, 2004 09:00 AM US Eastern Timezone

L-3 Communications Acquires AVISYS; Leader in Aircraft Protection Systems

NEW YORK--(BUSINESS WIRE)--June 23, 2004--L-3 Communications (NYSE: LLL) announced today that on June 16, 2004, it acquired AVISYS, Inc. for $8 million in cash, subject to a closing date net asset adjustment, plus potential additional consideration that is contingent upon the post-acquisition performance of AVISYS through 2006. The acquisition is expected to be slightly accretive to L-3 Communications' results for 2004.


Headquartered in Austin, Texas, AVISYS is a leader in products developed to counter the threat of missile attack against civilian, commercial, military, and Head of State (HOS) aircraft. It has several areas of technical competence, including electronic warfare/avionics systems engineering and integration, Infrared Countermeasure (IRCM), Directed IRCM (DIRCM), laser warning and countermeasures, missile warning systems radio frequency (RF) threat warning, technical and engineering and support programs. Since the aftermath of the September 11th terrorist attacks, AVISYS has been developing modular, effective and affordable aircraft protection solutions against the threat of shoulder-launched Infrared (IR) heat-seeking missiles, commonly known as Man-Portable Air Defense Systems (MANPADS).

"AVISYS has been on the leading edge of protection systems for aircraft since its founding in 1991," said Frank C. Lanza, chairman and chief executive officer of L-3 Communications. "The company is well respected for its expertise in avionics, electronic warfare and electro-optical/infrared capability. AVISYS is also synergistic with our other existing avionics and telemetry products for military and commercial markets and will supplement and expand new aircraft self-protection capabilities to our Spar and Integrated Systems businesses, which specialize in aircraft modernization services."

In commercial markets, Mr. Lanza noted AVISYS is the IRCM technology lead and system architect for the Commercial Airliner Protection System (CAPS) for United Airlines, the program lead for the Phase I $2 million system development and demonstration (SDD) Department of Homeland Security (DHS) contract to design and demonstrate infrared countermeasures against MANPADS missile threats to U.S. commercial airlines. L-3 Communications is already part of this dozen-member team and its Integrated Systems division (IS) is providing aircraft integration, airworthiness analyses modification and FAA certification.

"There is significant growth potential for this technology, as the threat of terrorism against military and civilian personnel continues to increase," continued Mr. Lanza. "We estimate the market for special mission military aircraft and for emerging commercial aircraft and HOS applications is approximately $14 billion."

One of AVISYS' key technologies - the Wide-Body Integrated Platform Protection System (WIPPS) - is a decoy-based infrared defense system providing automatic threat detection and protection that is proven in combat. WIPPS is an integration of fully exportable missile warning and threat adaptive countermeasures subsystems. AVISYS, as a United Airlines team member, has also developed a low-cost, highly effective WIPPS variant for the DHS contract. With the U.S. airline industry already in a challenging economic environment, an affordable and effective system with low life-cycle costs is very attractive. The current WIPPS is also appealing because it has growth potential in the DIRCM area.

Mr. Lanza also noted that AVISYS aircraft protection systems are being deployed on Head of State, civilian, special mission and commercial aircraft to a worldwide customer base.

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 and is a merchant supplier of a broad array of high technology products. 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.

Contacts


L-3 Communications
Cynthia Swain, 212-697-1111
OR
Financial Dynamics
Investors:
Eric Boyriven/Olivia Pirovano, 212-850-5600
OR
Media Contacts:
Evan Goetz, 212-850-5600