Harris Corporation Anticipates $90 Million As Part Of Next-Generation U.S. Air Force Satellite Terminal Program Led By The Boeing Company.

Business Editors/High Tech Writers

MELBOURNE, Fla.--(BUSINESS WIRE)--Sept. 24, 2002

Harris Corporation (NYSE:HRS) today announced that it has been issued a letter of intent to contract with The Boeing Company's Integrated Defense Systems operating unit, Anaheim, California, for a six-year, $90 million military satellite communications (MILSATCOM) hardware design, development, and integration project as part of the U.S. Air Force's Family of Beyond Line-of-Sight Terminal (FAB-T) program. FAB-T is the next generation of MILSATCOM airborne and ground terminals that will provide the warfighter with protected, wideband satellite communications onboard airborne and ground fixed and mobile command and control centers.

During FAB-T System Design and Development (SDD), Harris will conduct terminal and antenna hardware integration, and operator interface development for aircraft and ground terminals. Harris participation may reach $90 million for the SDD phase of the program, including the management of additional subcontractors, once subcontract negotiations with Boeing are final.

"Through the use of the Air Force's Spiral Development Acquisition Techniques, FAB-T will exemplify how MILSATCOM terminals will be developed in the future," said Bob Henry, president, Harris Government Communications Systems Division (GCSD). "FAB-T is a key component of the military's initiative to develop a family of re-configurable and re-programmable satellite communications systems that can accommodate multiple frequency bands and varying high data rates from multiple communications satellites."

FAB-T utilizes an open architecture and a software re-programmable design that will simplify future upgrades to the U.S. Air Force MILSATCOM network, significantly lowering costs in operations and logistics support for these advanced terminals. The FAB-T terminals employ the innovative Software Defined Radio (SDR) architecture being developed by Boeing and Harris for the Joint Tactical Radio System (JTRS).

"FAB-T represents a significant market penetration for Harris and adds to our already strong relationship with Boeing," said Tim Malac, director of aerospace systems Business Development, Harris GCSD. "FAB-T will provide opportunities for Harris, as part of the Boeing team, to expand this capability into other airborne and ground-based platforms."

Protected, beyond line-of-sight communications will be provided by the new Advanced Extremely High Frequency (Advanced EHF) satellite system, a new generation of secure and survivable satellites designed to support military forces. Future versions of FAB-T will enable communications with other satellite systems such as the Wideband Gapfiller System (WGS), a program for which Harris is providing the Ka-Band spot beam antennas, and engineering and technical support as part of the Boeing team.

Harris GCSD conducts advanced research studies, develops prototypes, and produces and supports state-of-the-art, highly reliable communications and information systems that solve the mission-critical communications challenges of its military and government customers, as well as provides the technology base for the company's diverse commercial businesses.

Harris Corporation is an international communications equipment company focused on providing product, system, and service solutions for commercial and government customers. The company's five operating divisions serve markets for microwave, broadcast, network support, tactical radio, and government systems. Harris has sales and service facilities in more than 90 countries. Additional information about Harris Corporation is available at http://www.harris.com.

Forward-Looking Statement

This press release contains forward-looking statements that reflect management's current expectations, assumptions and estimates of future performance and economic conditions. Such statements are made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The company cautions investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements. Statements about the expected value of the program to Harris are forward-looking and involve risks and uncertainties. Other factors that may impact the company's results and forward-looking statement may be disclosed in the company's filings with the SEC. Harris disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.