L-3 Communications Announces $40 Million Contract Award for Joint Strike Fighter -JSF-;...

Business Editors

NEW YORK--(BUSINESS WIRE)--July 22, 2002

L-3 Communications (NYSE:LLL) announced today that its Communication Systems-East division recently received two contract awards totaling up to $40 million from Lockheed Martin for the Joint Strike Fighter (JSF) program.

The F-35 JSF is the next generation single-engine, single pilot fighter aircraft with a multi-decade life cycle. Lockheed Martin Aeronautics Company, Fort Worth, TX, is the JSF team's prime contractor,

For one portion of the work, L-3 Communication Systems-East will supply computer boards that provide the Type 1 Cryptographic based security, key management, and data for the classified hardware and software utilized in JSF Mission Systems and the Integrated Core Processor. This $30 million, 10-year contract is for design and development and Information System Security Engineering. Lockheed Martin Tactical Systems (LMTS) Eagan, MN, is responsible for the development of the Integrated Core Processor, which provides general purpose and signal processing resources for the JSF Mission Systems.

The other contract is with Lockheed Martin Aeronautics Company, Fort Worth, TX, to supply Weapons Level Systems Information Security engineering analysis and studies support. The initial value of the award is $8 million, with two options providing a total potential contract value of $10 million.

The principal objectives of the Lockheed Martin System Development and Demonstration phase of the JSF program are to develop an affordable family of strike fighter weapon systems that meet USAF, USMC, USN, and UK service needs, and an autonomic logistics support system that significantly reduces Life Cycle Cost.

"JSF is a critical program for the defense and security of our nation during the 21st century," said Frank C. Lanza, chairman and chief executive officer of L-3 Communications. "This is a major new program for L-3 Communications and the selection of our company for the very important Information Security work shows the confidence of Lockheed Martin and the Department of Defense in our technology and our people. We are very pleased to have been selected to be on the Lockheed Martin team during the development and demonstration phase of the JSF program."

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 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.