Comtech Receives $3.1M MTS Order From U.S. Army for Mobile Communications Equipment and Satellite Messaging and Location Services.

Business & Technology Editors

MELVILLE, N.Y.--(BUSINESS WIRE)--Aug. 7, 2000

First Large Equipment Order in Comtech's 8 Year,

$418M MTS Contract with the U.S. Army

Comtech Telecommunications Corporation (Nasdaq: CMTL) announced today that its Maryland subsidiary, Comtech Mobile Datacom Corporation, received $3.1 million in orders from the U.S. Army for the supply of equipment associated with the Movement Tracking System (MTS) program.

This award, the first large equipment delivery order against Comtech's eight (8)year, $418M contract announced in June 1999, follows months of extensive operational and environmental testing conducted by the Army Test & Evaluation Command (ATEC). With this order, the Army has taken the first step in what could eventually be an Army-wide deployment of Comtech's messaging and location tracking MTS system.

Fred Kornberg, President and Chief Executive Officer of Comtech Telecommunications, said "This award demonstrates our ability to successfully deliver on our contract with the U.S. Army. The Comtech tracking and messaging system offers the Army robust capability in terms of rapid, secure messaging, and the ability to operate over a broad range of satellites, many of which are already in orbit."

Kornberg continued, "In addition to our activities in North America, we are conducting demonstrations with the U.S. Army in Europe, and planning for similar demonstrations in Southeast Asia over the next few months."

Colonel Stephen Broughall, Army Project Manager for MTS, said "MTS is a key enabler needed to modernize our entire Army logistics system. Our logistics commanders and their soldiers have been anxiously awaiting delivery of this product and they won't be disappointed--it is a winner that will revolutionize the way we support our warfighters."

The orders include the delivery of satellite tracking and messaging equipment for more than 460 Army logistics vehicles and mobile control stations, including the associated satellite-based communications services. Delivery of units to Ft. Hood is to begin in September.

Comtech, with the assistance of its partner, Anteon Corporation of Fairfax, VA, will also train the MTS operators in the use of the tracking and messaging applications that are part of the system. Equipment is manufactured to Comtech's specifications by SCI Systems, of Huntsville, AL and PGI of Hauppauge, NY. MTS mapping software is provided by Miletus Associates of Albuquerque, NM.

Comtech Mobile Datacom, a Germantown, Maryland-based company, is engaged in the provision of satellite-based packet data communication systems and services for the land transportation, remote sensing, utility and aviation markets.

Comtech Telecommunications Corp. is an innovative player in domestic and global high-technology markets. Through its operating units, Comtech pursues opportunities in three interrelated market segments: telecommunications transmission, RF microwave amplifiers, and mobile data communications services. In each of these segments, growth is driven by increasing demand for telecommunications infrastructure and network and messaging services. The company's specialties include the design and manufacture of advanced products and networks used for transmission of voice, data and video using satellite, over the horizon microwave, terrestrial line of sight and other wireless communications systems. More than 275 distinct Comtech products are in service in more than 100 countries.

Certain of the statements contained herein, including, but not limited to, information relating to the future performance and financial condition of the Company, the plans and objectives of the Company's management, and the Company's assumptions regarding such performance and plans are forward-looking in nature and involve certain significant risks and uncertainties. Actual results could differ materially from such forward-looking information. Included among the factors which might cause such results to differ are: the Company's ability to keep pace with rapid technological changes; our backlog being subject to customer cancellation or modification; our sales to the U.S. Government being subject to funding, deployment and other risks; our fixed price contracts being subject to risk; the highly competitive nature of our markets; our dependence on component availability, subcontractor availability and performance by key suppliers; our dependence on international sales; our mobile data communications business being in a developmental stage. Additionally, these forward-looking statements are qualified in their entirety by the cautionary statements contained in the Company's Securities and Exchange Commission filings.