L-3 Communications Awarded Multimillion-Dollar Contract to Support the U.S. Air Force Space Telemetry, Tracking and Control Network.

NEW YORK -- L-3 Communications (NYSE: LLL) announced today that its Telemetry-West (L-3 Telemetry-West) division has been awarded a $9.9 million contract by the U.S. Air Force to provide the next-generation, crypto-modernization-compliant encryptor and decryptor for satellite telemetry, tracking and control (TT&C). This program will include two configurations - an embeddable solution and a standalone end cryptographic unit (ECU). L-3 Telemetry-West has partnered with L-3's Communication Systems-East (L-3 CS-East) division for this key national security initiative.

As part of the National Security Agency's (NSA) initiative to modernize Department of Defense (DoD) cryptographic devices, the Space TT&C Cryptographic Modernization (CM) Aerospace Vehicle Equipment Increment 1 (AVE I1) program is acquiring new equipment to meet communication security (COMSEC) requirements for future satellite programs. This next-generation one-time programmable COMSEC device will replace the application-specific integrated circuit (ASIC)-based COMSEC devices being used by existing satellite programs.

The AVE I1 will be an NSA Type 1-certified space flight TT&C COMSEC device. It consists of a hardware solution that can be programmed with different algorithms for command and telemetry applications.

"This award keeps L-3 Communications on the leading edge of space encryption and decryption technology and demonstrates the company's role as a key contractor in the government's multibillion-dollar Cryptographic Modernization initiative," said Burt Smith, president of L-3 Telemetry-West. "We're excited to maintain our position as the leading supplier of satellite TT&C encryption and decryption devices."

Solicitations for the program began in January 2006. The current DoD program phase, which includes the delivery of the basic system integration designs, will be completed in April 2008. Headquarters Cryptologic Systems Group, San Antonio, TX, is the contracting office (FA8307-06-C-0009).

L-3 Telemetry-West is the world's premier provider of airborne, ground and spaceborne payload and telemetry components and systems, as well as tactical intelligence receivers, military High Frequency/Single Side Band (HF/SSB) systems, microwave radios and satellite command and control capabilities. To learn more about L-3 Telemetry-West, please visit the company's web site at www.L-3Com.com/tw.

L-3 CS-East is a leading supplier and developer of Type 1 secure solutions with a broad portfolio of secure voice, data and encryption products as well as critical enabling technologies, including key management and embedded encryption. To learn more about L-3 CS-East, please visit the company's web site at www.L-3Com.com/cs-east.

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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