L-3 Communications Acquires Applied Signal and Image Technology, Inc.

NEW YORK -- L-3 Communications (NYSE: LLL) announced today that it acquired Applied Signal and Image Technology, Inc. (ASIT) on November 23, 2005. The terms of the transaction were not disclosed. The business has been renamed L-3 ASIT and will report to L-3's Integrated Systems Group. The acquisition is expected to add approximately $20 million to L-3's sales in 2006 and is planned to be accretive.

Headquartered in Linthicum Heights, Maryland, ASIT specializes in the research, engineering and production of signal processing systems. ASIT designs, develops and integrates tactical communications intelligence (COMINT), measurement and signature intelligence (MASINT) and electronic attack (EA) systems for both ground and airborne installations, including fixed-wing aircraft, rotary-wing aircraft and unmanned aerial vehicles (UAVs). ASIT has specific expertise in precision radio-signal direction finding and geo-location.

Founded in 1992, ASIT has sold over 600 geo-location systems, including payloads for the Predator UAV and the UH-60 Blackhawk helicopter. Many of these systems and payloads are deployed in support of U.S. operations in both Iraq and Afghanistan. ASIT also develops algorithms and technology for processing MASINT signatures, such as hyperspectral imagery, in support of national programs.

"As a leader in the signals processing field, ASIT adds their unique capabilities and products to L-3 while being highly complementary to our existing ISR business," said Robert W. Drewes, president and chief operating officer of L-3 Integrated Systems Group. "Already, L-3 businesses have worked with ASIT on such programs as Predator and Big Safari, and as part of our C3ISR segment ASIT will provide L-3 with sensor systems and technology that will integrate well with our UAV initiatives and our larger C3ISR programs."

Mr. Drewes also noted that there are solid growth opportunities for ASIT's capabilities in the small payload UAV market, as well as the business jet class of aircraft.

"ASIT has developed a family of small, low-power geo-location systems for both ground and airborne applications, and has established strong working relationships with the special operations groups in the U.S. Army, Navy and Marines," continued Mr. Drewes. "With this acquisition, L-3 Communications has positioned itself to compete well in the networked tactical geo-location market."

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.

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