Condor Systems to be Acquired by EDO Corp.

Business Editors/High-Tech Writers

MORGAN HILL, Calif.--(BUSINESS WIRE)--May 28, 2002

Condor Systems Inc., a leading supplier of electronic intelligence equipment to the military and private industry, announced today that it is being acquired by EDO Corporation of New York.

Under terms of the proposal, EDO would acquire nearly all of Condor's assets and businesses for approximately $112.3 million in cash and assumed liabilities, including accounts payable, obligations relating to employees and standby letters of credit.

"We believe this is a very positive development for our company and we are very excited about partnering with an industry leader like EDO," said Condor's President and CEO Kent Hutchinson. "This will allow us to meet our obligations and continue serving our customers which has been our goal all along."

Condor filed for Chapter 11 restructuring late last year. The company was progressing well with its reorganization plan when the EDO offer was presented, Hutchinson said.

The boards and senior management of both companies have approved the proposed acquisition, which is still subject to Bankruptcy Court approval. Current employees will be offered employment and special incentives have been offered to retain Condor's key technical and management staff through the transition, officials said.

"Our cultures are highly compatible and our senior managers have known and respected each other for many years," said EDO's Chairman, President and CEO James M. Smith. "We are excited by the potential of this proposed acquisition to significantly improve EDO's ability to serve customers in the defense intelligence communities around the world."

Condor, founded in 1980, is privately held and employs about 420 employees here and at its facilities in Simi Valley.

EDO is publicly traded (NYSE:EDO) with 2001 annual revenues of $260 million and about 1,400 employees. The defense electronics company supplies highly advanced electronic, electromechanical and information systems and engineered materials to governments and private industry customers worldwide.