New Zealand Ministry of Defense Awards P-3 Systems Upgrade Program to L-3 Communications Integrated Systems.

NEW YORK -- L-3 Communications (NYSE:LLL) announced today that the New Zealand Ministry of Defense has selected L-3 Communications Integrated Systems (L-3 IS) for a contract valued at approximately $200 million to upgrade mission and communication-navigation systems for New Zealand's P-3K maritime patrol aircraft.

The upgrades to the six aircraft operated by the Royal New Zealand Air Force will include the replacement of the data management system, radar, electro optics, communications and navigation systems. The mission systems upgrade involves the installation of new imaging radar electronic sensor equipment (video and infrared camera) and mission management systems. The upgrades also include ground-based support and training facilities.

"This win affirms our long-standing commitment to New Zealand," said Bob Drewes, president of L-3 IS. "We have established great relationships with our New Zealand industry partners and our Integrated Data Handling System superbly meets New Zealand's requirements."

L-3 IS has total system integration responsibility and will provide the mission system design, system integration, the intercommunications subsystem, the data management system and system installation and test on the first aircraft at its Greenville, Texas facility.

The L-3 IS team includes New Zealand companies Safe Air Limited and Beca Applied Technologies. Other team members include L-3 Communications Wescam, IAI ELTA Electronics Industries, Universal Avionics Systems Corporation, and Rockwell Collins.

Safe Air Limited will complete production on the five remaining aircraft, support development of integrated logistics support data, and install the ground support facilities under sub-contract to L-3 IS. Beca Applied Technologies will provide software design support for the data management systems and long-term software maintenance support under a separate contract with the Crown.

IAI ELTA Electronics will supply the radar subsystem and L-3 Communications Wescam adds its industry-leading electro-optical/infrared subsystem. Universal Avionics Systems Corporation will provide its flight management subsystem and Rockwell Collins will supply the communication subsystem.

"Our Orion fleet is critical for surveillance of New Zealand's Exclusive Economic Zone and surrounding waters, as well as meeting our South Pacific obligations," said New Zealand Defense Minister Mark Burton. "The Orions are also used for search and rescue operations, and were recently deployed to the Arabian Sea area in support of the international campaign against terrorism."

"This government has been committed from day one to building a modern, sustainable, well-equipped Defense Force," Burton continued, "and this investment in our P-3 fleet is another clear example of that commitment. This upgrade will ensure interoperability with our security partners, allow New Zealand to participate in a range of operations, and provide support to the Defense Force's other maritime and land force elements."

L-3 Communications Integrated Systems is an SEI CMM Level 5 developer and integrator of complex electronic systems for intelligence, surveillance and reconnaissance (ISR) missions. Headquartered in Greenville, Texas, L-3 IS also operates from major sites in Austin and Waco, Texas; Madison, Miss.; Lexington, Ky.; Tulsa, Okla. and Avalon, Australia.

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. The forward-looking statements speak only as of the date made, and the company undertakes no obligation to update these forward-looking statements.