L-3 Communications Awarded Nearly $40 Million F/A-18C Distributed Mission Training Program Contract.

Business and Technology Editors

NEW YORK--(BUSINESS WIRE)--Dec. 17, 2002

L-3 Communications (NYSE:LLL) today announced that its EER Systems, Inc. and Link Simulation and Training divisions have received a $39.9 million award from Naval Air Systems Command Training Systems Division (NAVAIR TSD) in Orlando, FL to develop the service's first F/A-18C Distributed Mission Training (DMT) system. EER, the prime contractor for the F/A-18C DMT, received the award from NAVAIR Orlando TSD as a delivery order under the Navy's FY2000 Training Systems Contract.

The initial F/A-18C DMT suite, which will be built and integrated at Link's Arlington, TX operation, will be delivered to Naval Air Station Oceana, VA. The Navy could exercise an option for a second F/A-18C DMT suite, which would be installed at Naval Air Station Lemoore, CA. The F/A-18C DMT suite will consist of four high fidelity, networked trainers. These trainers will enable F/A-18C pilots to train in tactical deployment as a division within a highly realistic, simulated environment for the first time.

"The F/A-18C DMT is the first step in the Navy's sweeping plan to implement training in a distributed environment that will mirror the spectrum of future conflicts where success hinges on multi-unit, joint and possibly coalition operations," said Frank Lanza, chairman and chief executive officer of L-3 Communications. "This network of F/A-18C simulators will provide tactically relevant collective training for division-level simulated exercises, contributing significantly to the Navy's goal to achieve realistic fleet training."

The F/A-18C DMT is part of the Navy Aviation Simulation Master Plan. This plan calls for all of the service's assets that operate in the air, on land and at sea to train in a fully integrated, synthetic battlespace.

"The F/A-18C DMT system will provide state-of-the-art training that will be used during the interdeployment training cycle to ensure pilot readiness levels are maintained," said Capt. Larry Howard, program manager for NAVAIR Aviation Training Systems. "The fleet is depending on this collective team. Navy leadership believes in what this partnership brings to combat readiness."

Four high fidelity tactical operational flight trainers are at the center of the F/A-18C DMT system. The trainers will be integrated with Link's new personal computer image generation system, SimuView(TM), to provide out-the-window and cockpit sensor imagery. The out-the-window imagery will be projected onto Link's SimuSphere(TM) visual display system. A nine-facet SimuSphere visual system display will provide pilots operating each of the F/A-18C Tactical Operational Flight Trainers with a 360(degree) out-the-window field-of-view of sky, terrain and targets.

EER Systems, Inc., based in Chantilly, VA, is a recognized industry leader providing a wide range of technology-based services, support and products to federal, state and local governments and to the private sector. Founded in 1979, EER's primary business areas include training and simulation, information technology services, systems engineering, integrated security solutions, business and program management and intelligence community services. EER is one of five contractors operating as a prime contractor for NAVAIR Orlando on the indefinite delivery; indefinite quantity FY2000 Training Systems Contract (Lot I) under which the F/A-18C DMT order was awarded. EER is also a major provider of services and products to the U.S. Navy having major operations in China Lake, CA; Patuxent River, MD; and Orlando, FL.

Link Simulation and Training is a systems integration organization that specializes in delivering and supporting training systems and equipment that enhance operational proficiency. Link's full range of services include conducting front-end analysis, program design, course development and production, interactive distance learning, simulator design and production, training implementation, training evaluation, training management and field support. Link has major operations in Arlington, TX; Binghamton, NY; Orlando, FL; Broken Arrow, OK; and Phoenix, AZ.

NAVAIR provides advanced warfare technology through the efforts of a seamless, integrated, worldwide network of aviation technology experts. From professional training to carrier launch; from sensor data to precision targeting; from aircraft and weapons development to successful deployment; from real-time communication to aircraft recovery NAVAIR provides dominant combat effects and matchless capabilities to the warfighter.

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 US 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.