L-3 Communications Integrated Systems Earns $104 Million Contract Option for the U.S. Navy P-3 Aircraft Sustainment, Modification and Improvement Program.

NEW YORK -- L-3 Communications (NYSE: LLL) announced today that its Integrated Systems (L-3 IS) subsidiary has earned an option-year with a total potential value of $104 million for the U.S. Navy P-3 Sustainment, Modification and Improvement Program (SMIP). This indefinite-delivery/indefinite-quantity (ID/IQ) contract was originally awarded in 2005 with four options.

The program provides for an intensive depot level process for P-3 airframe and component inspection and deficiency identification and correction to ensure safe and reliable operation, as well as to enhance the aircraft service life expectancy to sustain inventory levels throughout the service period.

Work will be performed on all types, models and series of P-3 aircraft in the 164-aircraft U.S. Navy fleet, as well as P-3 aircraft supported through U.S. Navy-administered foreign military sales programs.

L-3 IS' SMIP work includes a range of aircraft sustainment and modernization activities, including:

--P-3 Special Structural Inspections (SSIs);

--Enhanced Special Structural Inspections (ESSIs);

--Fabrication and delivery of Special Structural Inspection Kits (SSI-Ks);

--Phased Depot Maintenance (PDM); and

--Modification/Installation Programs (MIPs).

The company recently delivered a 14th refurbished P-3 aircraft to the U.S. Navy as part of an existing ESSI program. The existing program calls for L-3 to perform ESSIs on 28 U.S. Navy P-3s. Future sustainment tasks on additional P-3 aircraft are likely to be included as part of SMIP.

L-3 IS has more than 50 years of aircraft modification experience and has modified more than 300 P-3 aircraft for many customers including the U.S. Navy, U.S. Customs and Border Protection, Greece and Canada. Continuing programs include major tactical system upgrades for the Royal New Zealand Air Force and the Republic of Korea's Navy P-3s. L-3 IS recently completed modernization of the Royal Australian Air Force (RAAF) fleet of AP-3Cs under a program designated Sea Sentinel. L-3 IS' experience and capability includes a workforce with current P-3 experience, as well as critical tooling, data and material necessary to support all P-3 initiatives.

L-3 IS (www.l-3is.com) is recognized internationally as a systems integration organization specializing in the modernization and maintenance of aircraft of all sizes, and the study, design, development, and integration of special mission systems for military and commercial applications. The company has modified more than 15,000 different aircraft of more than 125 types. Headquartered in Greenville, Texas, L-3 IS operates from multiple sites in Texas, Mississippi, Georgia, Kentucky, Oklahoma, Virginia, Maryland, Alabama, the United Kingdom and Australia.

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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