L-3 Communications' Integrated Systems and QinetiQ Sign Memorandum of Understanding for ISTAR and ISR Program Collaboration.

NEW YORK -- L-3 Communications (NYSE: LLL) announced today that its Integrated Systems (L-3 IS) subsidiary has signed a Memorandum of Understanding (MoU) to pursue a Strategic Alliance Agreement with QinetiQ LTD of Farnborough, England and QinetiQ Inc., of Arlington, Virginia, to collaborate on technology development for Intelligence, Surveillance, Target Acquisition and Reconnaissance (ISTAR) and Intelligence, Surveillance and Reconnaissance (ISR) programs.

"L-3's experience in technology planning, mission system integration and platform integration, combined with QinetiQ's expertise in developing advanced defense technology products represents a formidable team in the ISTAR and ISR marketplace," said Bob Drewes, president and chief operating officer of L-3 IS. "We look forward to our efforts bringing substantial capability benefits to our mutual customers in the critical ISTAR/ISR mission area."

"QinetiQ brings planning and development of technology products for knowledge and information systems and sensors to the partnership," said Steven Brittan, managing director of QinetiQ's Spectrum Solutions Division. "This MoU will enable both parties to offer customers significant value in advancing ISTAR and ISR capabilities for the defense departments of the United States and the United Kingdom, as well as other countries."

QinetiQ's experience lies in developing advanced defense technology products such as electronic sensors and knowledge and information systems which support ISTAR and ISR.

L-3 IS has experience in the planning and insertion of advanced technologies for ISTAR and ISR programs. This includes providing operational domain expertise, systems engineering, integration of advanced technology sensors and mission systems and platform integration for ISTAR and ISR capabilities.

L-3 IS is recognized internationally as a system integration organization specializing in the modernization and maintenance of aircraft of all sizes, and the study, design, development, and integration of special mission systems for military and commercial applications. The company has modified more than 15,000 different aircraft of more than 125 types. Headquartered in Greenville, Texas, L-3 IS operates from multiple sites in Texas, Mississippi, Kentucky, Oklahoma, Virginia, Maryland, Alabama and Australia.

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. The company is a leading merchant supplier of a broad array of high technology products, including guidance and navigation, sensors, scanners, fuzes, data links, propulsion systems, simulators, avionics, electro optics, satellite communications, electrical power equipment, encryption, signal intelligence, antennas and microwave components. L-3 also supports a variety of Homeland Security initiatives with products and services. 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.

QinetiQ is a leading global defense technology and security company. Founded in July 2001 from the majority of the Defence Evaluation and Research Agency (DERA), the laboratories of the UK Ministry of Defence (MOD), QinetiQ today has grown internationally with around 11,500 employees in the UK and U.S., many of them internationally acclaimed experts, providing government and commercial customers sophisticated resources to create, evaluate, test and deliver technology-based services, solutions and products.

As part of its growing security business, recently launched products include: Tarsier - radar system to identify debris on an airport runway; BorderWatch - to see into vehicles to identify possible stowaways; Millimeter wave scanning - people screening systems to identify concealed weapons; Ferroguard - a man-portable metal detection system; and X-net - a system to stop vehicles being driven through checkpoints.

QinetiQ has developed a significant overseas customer base and has established a U.S. sales operation in Crystal City, near Washington D.C. to forge closer links with this potentially significant market. In October 2004, QinetiQ acquired the businesses of Foster-Miller, Inc. In November 2004, it acquired Wester Aerospace & Defense Group and in September 2005, it acquired Apogen Technologies, Inc. All are wholly-owned subsidiaries of QinetiQ North America, but remain autonomous, retaining their names, core management teams, employees and U.S. facilities. Also in September 2005, Foster-Miller acquired Planning Systems Inc. and QinetiQ acquired a 90% share of Verhaert Design and Development NV (VDD), the leading Belgian space systems integrator, which is being renamed Verhaert Space NV.

QinetiQ's annual results, released in July 2005, highlighted a 33.1% rise in operating profits to 69.6 million pounds on turnover which rose by 9.7% to 872.4 million pounds and EBITDA before exceptional items of 108.0 million pounds. These results were driven by a step change increase in business from North American customers.

The MOD holds a 56% stake in QinetiQ and in February 2003 confirmed The Carlyle Group, one of the world's leading private equity firms, as the strategic partner by taking a 31% stake. The balance is held by staff.

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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.