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Comtech Clears Final Hurdle to Deliver Satellite and Internet Based Tracking and Messaging Services

September 5, 2000 at 12:00 AM EDT
Comtech Clears Final Hurdle to Deliver Satellite and Internet Based Tracking and Messaging Services

- FCC Authorizes Comtech Mobile Datacom Corporation to Provide Commercial Satellite-Based Data Services
- Agreement Inked with TMI for Satellite Capacity

Melville, New York, September 5, 2000 - Comtech Telecommunications Corporation (Nasdaq: CMTL) today announced that its subsidiary, Comtech Mobile Datacom Corp., has been granted authority by the FCC to provide satellite-based packet data communications services in the United States on a commercial basis. The Special Temporary Authority authorizes Comtech to provide services through up to 5,000 mobile terminals. An application for a blanket license for service through up to 25,000 mobile terminals is pending.

Comtech will use the satellite and earth station services of TMI Communications under a five-year lease agreement with the Canadian company. The contract with TMI represents the first in a series of agreements to be established with operators of satellites for mobile services throughout the world. Tests and demonstrations are underway or planned in Europe and South East Asia, in anticipation of concluding leasing agreements for satellite access in those regions by early next year.

Commenting on the news, Fred Kornberg, chief executive officer and president of Comtech Telecommunications Corporation, said, "Combining TMI's powerful MSAT-1 satellite network capacity with Comtech's satellite tracking and messaging equipment enables us to satisfy the logistics requirements of our North American-based customers."

Comtech's proprietary network and operating system is designed to offer secure, global, satellite-based tracking and messaging services through customer controlled virtual private networks. Comtech recently received its first order for $3.1 million under an eight-year $418 million contract awarded in June 1999 with the U.S. Army to supply their Movement Tracking System for global messaging and position reporting.

"With the FCC authority to provide services to up to 5,000 mobile terminals, we now have the complete infrastructure in place to take the next step and enter the commercial market for satellite-based packet data communication services in the United States. We are initially targeting opportunities in truck fleet monitoring because of the similarities between the U.S. Army's messaging and tracking requirements, and those of commercial land-based transportation systems," concluded Kornberg.

Comtech Mobile Datacom Corp., (www.comtechmobile.com), a Germantown, Maryland-based company, is engaged in the provision of satellite-based packet data communication systems and services for the land transportation, remote sensing, utility and aviation markets.

TMI Communications (www.tmisolutions.com) is a leading North American developer and supplier of mobile satellite communications services, delivering a full portfolio of wireless digital data, voice, fax and dispatch radio applications from the powerful MSAT-1 satellite. Headquartered in Ottawa, TMI is a member of the BCE Media group and a wholly owned subsidiary of BCE Inc., one of the world's premier telecommunications companies.

Comtech Telecommunications Corp., (www.comtechtel.com) is an innovative player in domestic and global high-technology markets. Through its operating units, Comtech pursues opportunities in three interrelated market segments: telecommunications transmission, RF microwave amplifiers, and mobile data communications services. In each of these segments, growth is driven by increasing demand for telecommunications infrastructure and network and messaging services. The company's specialties include the design and manufacture of advanced products and networks used for transmission of voice, data and video using satellite, over the horizon microwave, terrestrial line of sight and other wireless communications systems. More than 250 distinct Comtech products are in service in more than 100 countries.