L-3 Communications Introduces IKMS; Protects Banks and e-Commerce Businesses From Security Threats.

Business Editors

NEW YORK--(BUSINESS WIRE)--Jan. 27, 2000

L-3 Communications (NYSE:LLL) announced today that its Communication Systems- East division has introduced the Integrated Key Management System (IKMS), an innovative security product for the protection of cryptographic assets.

&uot;At this time, there are over 220,000 ATM machines in the United States alone, and significant manpower is currently required to manually distribute encryption keys to ensure their security. The e-commerce and smart card industries face a similar issue,&uot; said Glenn Adair, the IKMS program manager for Communication Systems-East. &uot;By allowing organizations to automate the re-key process over-the-air through a secure network distribution system, IKMS can enhance both their efficiency and security. IKMS is also backward-compatible with manual key distribution processes for legacy assets, so it's fully functional through a transition phase.&uot;

L-3 Communications developed IKMS for the commercial market, leveraging over 10 years of experience in developing key management systems for government and military use. Developed by Communication Systems-East, L-3's electronic key management system product is the government's key subsystem for the distribution of classified and sensitive information to US forces and its allies worldwide.

The first product of its kind, IKMS provides life cycle key management via a single workstation and uses digital certificates and public key techniques for secure key distribution and asset authentication. Additionally, IKMS supports eleven cryptographic algorithms including DES and 3DES implemented in a FIPS compliant PCI module.

L-3 Communication Systems-East, based in Camden, NJ, 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 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 cellular customers.

To learn more about L-3 Communications, please visit the company's website 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.