L-3 Communications Announces $52 Million Contract Modification from the U.S. Government; Expanded Capabilities for U.S. Military's Secure Global Communications System.

Business Editors/Technology Writers

NEW YORK--(BUSINESS WIRE)--Jan. 13, 2003

L-3 Communications (NYSE:LLL) announced today that its Communication Systems-East division recently received a $52 million contract modification from the U.S. Government for the U.S. Military's secure global communications system via the Advanced Extremely High Frequency Communications Security (COMSEC) and Transmission Security (TRANSEC) System, known in the industry as ACTS.

L-3 Communications, teamed with Boeing Space Systems, L-3's Conic Division and Rainbow Mykotronx, received an initial award to design and develop the architecture for the new Crypto-Modern security components in December 1999.

The system will provide secure global communications to support joint U.S. Military services and allied or joint coalition actions, well into the 21st Century. Should catastrophic events occur, the system would provide survivable, worldwide secure communications via satellite. ACTS will be the next-generation replacement for the COMSEC/TRANSEC portion of the Military Strategic and Tactical Relay (MILSTAR) system that currently provides command and control communications for the U.S. Government and has been in use since 1995.

"The contract modification was developed by the team members, the U.S. Military and the user community," said Ed Tyndall, program manager for L-3 Communication Systems-East. "The goals of the modification are to provide a well designed secure communications system that will meet the present needs of our military, along with providing the flexibility to meet future needs as they evolve."

L-3 will deliver its security components in July of 2004 with the first satellite scheduled to be launched in December 2006. The security components include:

-- A satellite COMSEC/TRANSEC component controlled by embedded processors developed by L-3. The system and security architecture were designed to enable future software replacement as technology advances and new algorithms are developed.

-- A common Ground/Shipboard/Airborne COMSEC/TRANSEC component, using the same architecture as the satellite system that can be embedded in terminals developed by all of the services.

-- A User Application Software component that is part of the key management system to distribute keys to satellites and terminals as required and to properly account for all keying material.

-- Specialized test equipment being developed by L-3's Telemetry West, Conic Division located in San Diego.

L-3 Communication Systems-East, based in Camden, N.J., designs, develops, produces and integrates communication systems and support equipment for commercial, space, ground, air and naval operations. L-3 Communication Systems-East is a division of L-3 Communications.

Headquartered in New York City, L-3 Communications is a leading merchant supplier of Intelligence, Surveillance and Reconnaissance (ISR) products, 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.