L-3 Announces 2 Acquisitions

NEW YORK, June 17 -- L-3 Communications announced today it is acquiring two companies, Cincinnati Electronics and Brashear LP. It acquired Brashear LP on Monday for approximately $36 million in cash, and on Tuesday, it agreed to acquire Cincinnati Electronics for approximately $172 million in cash. That acquisition, subject to regulatory approval, is expected to be completed in July. L-3 said both deals are expected to be slightly accretive to its results for 2004.
With locations in Mason, Ohio and Pasadena, Calif., Cincinnati Electronics' IR and space subsystems operations develop military infrared (IR) imaging sensors and subsystems and space launch electronic subsystems electronics for the US military and for US and international contractors. They also provide IR components, electronics and systems reconnaissance, navigation and missile seekers for a number of US launch vehicles and spacecraft electronic niche markets. Its IR and space electronics products are used in the Delta LV, joint air-to-surface standoff missile, Sidewinder missile, C-130 gunship, Aegis destroyer, joint strike fighter (JSF), Mars Rover and Orbiter and the Atlas V. Cincinnati Electronics, and is a provider of InSb band arrays for space and intelligence imaging systems and a variety of sensor applications.

Brashear, in Pittsburgh, Pa., develops electro-optical systems for military and international customers and aerospace contractors, including laser ranging and tracking systems, test range instrumentation, telescope systems, naval fire control systems and laser beam directors.

Frank C. Lanza, chairman and CEO of L-3 Communications, said, "Both operations have strong engineering teams, world-class technologies, a blue-chip customer base and solid positions on key platforms. The present management teams at both companies are excellent and will benefit from the growth opportunities offered by L-3's market position and resources."

As part of the transaction, Cincinnati Electronics has entered into a long-term supply and development agreement with CMC Electronics, its current owner, to supply IR sensors for its enhanced vision system. L-3 said this relationship will provide it with an opportunity "to partner with a leading avionics integrator in the emerging market of improving situational awareness for aircraft pilots."

Lanza said Brashear adds new capabilities to L-3's expanding role in advanced optics, which includes its Wescam division, a producer of wireless visual information systems. "Brashear's synergy with our sensor group also allows us to expand our marketplace for our existing global positioning systems, navigation products and telemetry and instrumentation," he said.

L-3, based in New York City, is a provider of intelligence, surveillance and reconnaissance systems, secure communications systems, aircraft modernization, training and government services and a supplier of a wide variety of high-technology products. Its customers include the Department of Defense, Department of Homeland Security, US government intelligence agencies and aerospace contractors.

For more information, visit: www.l-3com.com