L-3 Communications Purchases Assets of ILEX Systems.

NEW YORK--(BUSINESS WIRE)--Feb. 11, 1998--

ILEX Provides Important C4I Capability to L-3

Communicationsu Growing Defense Business

L-3 Communications announced that it will purchase the assets of ILEX Systems, a leading provider of communications software support and related products to military and related government intelligence markets, for $53 million in cash and additional considerations based on performance.

Headquartered in Milpitas, CA, ILEX Systems had annual revenues of approximately $63 million in 1997. ILEX was founded in 1982 and has consistently increased revenues and profits over the years through internal growth as well as through acquisitions.

"The ILEX businesses are a key addition to our defense electronics and communications business," said Frank C. Lanza, chairman and CEO of L-3 Communications. "They bring us a stable business base, over 500 experienced software engineers and scientists and a well-established presence in military and government programs that complement our current programs."

Mr. Lanza also noted that ILEX is recognized as a high-end, technical, software-support provider to the command, control, communications, computing and intelligence (C4I) systems segment of the Department of Defense (DoD). ILEX has a strong presence in highly regarded programs, such as All Source Analysis System (ASAS), Joint Surveillance Target Attack Radar System (JSTARS) and Integrated Electronic Warfare Common Sensor (IEWCS).

"The C4I segment of the defense market is expected to continue to grow over 20 percent to $46.1 billion by the year 2000," said Mr. Lanza. "That growth is due to the ongoing effort by the DoD to create a leaner, more robust and adaptive digital battlefield architecture not dependent on force structure or a specific adversary. It's clear that secure communications to 'the last mile' is the basis for timely situational C4I and L-3 Communications now has a solid presence in this market."

"This acquisition and the others already announced demonstrate that we are executing on the corporate strategy that we outlined when L-3 Communications was formed in April of 1997," continued Mr. Lanza. "Our plan is to vertically enhance our product base by internal R&D and small niche acquisitions. In addition, we plan to horizontally add to our product base through acquisitions that are synergistic with our current technologies."

"ILEX not only enhances our business mix, it also fits into our business model," said Mr. Lanza. "We are a value-oriented, bottom-line company, and with all our acquisitions to date, we have been very focused on improving operating margins along with growing the business."

ILEX was co-founded by Joseph S. Lopez, its chief executive officer. Along with its military related business, ILEX also has an environmental consulting business -- Hygienetics Environmental Services. Hygienetics is a well recognized provider of premium environmental services to large nationally based commercial property managers and other high-end clients with complex environmental service needs. Its services include asbestos and lead-based paint management, environmental site investigation and remediation and indoor air quality management.

L-3 Communications is an independent merchant supplier of secure communication systems and products, avionics, displays, microwave components and telemetry, instrumentation and wireless products. Its customers include the DoD, selected U.S. government intelligence agencies, aerospace and defense prime contractors and commercial telecommunications and cellular customers.

Headquartered in New York City, L-3 Communications is an independent company, jointly owned by Frank C. Lanza, chairman and chief executive officer, Robert V. LaPenta, president and chief financial officer, Lehman Brothers Capital Partners III, and Lockheed Martin. -0-

NOTE: Any reference to the development of products, growth rates or the continued success of the company's current product offerings constitutes forward-looking information and actual future results may vary materially. There can be no assurance of the rate of growth of the industry or of the company, that the company's products will enjoy continued success or that any products in development will ever be commercially released or that, if released, such products will contribute revenues to the company sufficient to recoup or exceed their development cost. For a discussion of these and other factors that could affect L-3 Communications' business and financial results, see information contained in the company's filings at the Securities and Exchange Commission.

CONTACT: L-3 Communications, New York 

Cynthia Swain, 212/697-1111