L-3 Communications Receives $37 Million from U.S. Air Force for the Modernized User Equipment (MUE) Program.

NEW YORK -- L-3 Communications (NYSE: LLL) announced today that its Interstate Electronics Corporation (IEC) subsidiary was awarded $37 million for the first phase of the U.S. Air Force Modernized USER Equipment (MUE) Program by the U.S. Air Force NAVSTAR Global Positioning System (GPS) Joint Program Office. The total potential contract value for IEC, including future options, is $90.6 million.

The MUE program will fund the design and development of new GPS receiver technology for the support of future military GPS requirements. IEC's System on a Chip (SOC) approach will become the primary feature of IEC's new line of TruTrak M-Code GPS receivers. Use of this technology will result in a significant reduction in production costs, and provide flexibility for a broad range of military applications including gun-fired projectiles, aircraft avionics and hand-held GPS data units. IEC's product architecture will allow the production of receivers and higher-level systems to be accomplished in unclassified production facilities, further lowering the final system cost.

"We anticipate major price barrier breakthroughs in GPS-based systems, which will make this innovative technology more accessible and affordable than ever before," said Robert Huffman, president of IEC. "Our ASIC platform, coupled with our advanced anti-jam technology, will provide a very competitive product that supports all of our military GPS customers."

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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