L-3 Communications Acquires KDI Precision Products.

Business Editors

NEW YORK--(BUSINESS WIRE)--May 7, 2001

L-3 Communications (NYSE:LLL) announced that it has acquired KDI Precision Products for approximately $67.5 million. KDI's annual sales for 2001 are expected to be approximately $70 million, with significant growth prospects for 2002. The acquisition is expected to be accretive to L-3's earnings in 2001.

Based in Clermont County, Ohio, KDI has a forty-year history as a leading provider of premium fuzing products, including proximity fuzes, electronic and electro-mechanical safety and arming devices (ESADs) and self-destruct/sub-munition grenade fuzes. KDI's customer list includes such premier names as Lockheed Martin, Raytheon and the U.S. Army and Navy.

ESADs prevent the inadvertent firing and detonation of guided missiles during handling, flight operations and the initial phases of launch. KDI's proximity fuzes are used in smart munitions. All are considered to be critical safety and arming products. Additionally, during missile flight the ESAD independently analyzes flight conditions and determines safe separation distance after a missile launch.

"KDI's fuzing products are well respected in the global defense market," said Frank C. Lanza, chairman and chief executive officer of L-3 Communications. "Because of its aggressive R&D initiatives, KDI has developed products for several revolutionary precision weapon systems that are either under development or just entering the U.S. military inventory. These systems include the Joint Standoff Weapon System (JSOW), AIM 9X Sidewinder Air-To-Air Missile System, Guided Multiple Launch Rocket System (GMLRS), Extended Range Guided Munition (ERGM) and the Evolved Sea Sparrow Missile System."

Mr. Lanza also noted that KDI's leadership on multiple guided missile programs will further extend L-3's presence in the ESAD market by significantly broadening L-3's product offerings in this business area. KDI's history of support on key legacy systems such as the Multiple Launch Rocket System (MLRS), Patriot Missile System, Tube Launched, Optically Tracked, Wire Guided (TOW) Anti-tank Missile System and Army Tactical Missile System (ATACMS) will continue as the Army transforms into a lighter, more rapidly deployable force.

Mr. Lanza concluded, "KDI's strong engineering staff, experienced senior leadership and world class manufacturing facilities position them for continued growth and profitability as precision weapon systems proliferate in the arsenals of the U.S. Department of Defense (DoD) and our allies. As weapon systems become more complex, the technical requirements for fuzing increase dramatically. KDI's engineering expertise and demonstrated performance place them at the forefront of the ongoing revolution in precision munitions as the preferred supplier for demanding fuzing solutions."

Headquartered in New York City, L-3 Communications is a leading merchant supplier of secure communications systems and products, avionics and ocean products, training products, microwave components and telemetry, instrumentation, space and wireless products. Its customers include the Department of Defense, selected U.S. government intelligence agencies, aerospace prime contractors and commercial telecommunications and wireless customers.

To learn more about L-3 Communications, please visit the company's web site at www.L-3Com.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: 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.