Analogic Corporation and L-3 Communications Corporation Settle Lawsuit.

PEABODY, Mass. -- John W. Wood, President and CEO of Analogic Corporation (NASDAQ: ALOGE), announced today that Analogic and L-3 Communications Corporation (NYSE: LLL) have reached an amicable settlement regarding the pending lawsuit filed by L-3 in Delaware Chancery Court on June 16, 2004. The settlement does not entail payment by either party, and the specific terms of the settlement are confidential.

Mr. Wood said, "We are pleased to have successfully resolved this matter with L-3. We look forward to a renewed relationship and to supplying our EXplosives Assessment Computed Tomography (EXACT(TM)) Systems to L-3, as we have for several years." The EXACT is the "heart" of L-3's eXaminer 3DX(R) 6000, a certified Explosives Detection System (EDS) that has been purchased by the U.S. Transportation Security Administration (TSA) and installed at major airports across the U.S. The eXaminer 3DX 6000 systems are also installed at a number of leading international airports, including Israel's Ben Gurion Airport, Singapore's Changi Airport, and Italy's Fiumicino and Ciampino Airports.

On September 1, Analogic announced that it had received an additional order for EXACTs from L-3 Communications Security and Detection Systems, Inc. The order has a value of approximately $26,000,000 and will be fulfilled during calendar 2005, with shipments beginning in the first quarter of 2005. Analogic recently completed the shipment of forty units to L-3, fulfilling an April 2004 order.

Analogic Corporation is a leading designer and manufacturer of advanced health and security systems and subsystems sold primarily to Original Equipment Manufacturers (OEMs). The Company is recognized worldwide for advancing the state of the art in Computed Tomography (CT), Digital Radiography (DR), Ultrasound, Magnetic Resonance Imaging (MRI), Patient Monitoring, Cardiovascular Information Management, and Embedded Multiprocessing.

This press release reflects the Company's or management's intentions, hopes, beliefs, expectations, or predictions. These are considered "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. Forward-looking statements (statements that are not historical facts) in this press release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements, including statements about product development, market and industry trends, strategic initiatives, regulatory approvals, sales, profits, expenses, price trends, research and development trends, and capital expenditures, involve risks and uncertainties, and that actual events and results may differ significantly from those anticipated in such statements. Actual results may differ materially from those anticipated in such forward-looking statements as a result of various factors, including those discussed in the Company's periodic reports filed with the SEC.

eXaminer 3DX 6000 is a registered trademark of L-3 Communications