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Comtech Receives $5M in New Orders to Provide Equipment and Services for U.S. Army's Movement Tracking System

July 31, 2001 at 12:00 AM EDT
Comtech Receives $5M in New Orders to Provide Equipment and Services for U.S. Army's Movement Tracking System

- Satellite tracking and messaging equipment included
- Third round of large orders under 8-year contract

MELVILLE, NY - July 31, 2001 - Comtech Telecommunications Corp. (Nasdaq: CMTL) announced today that its has received approximately $5M in new orders for equipment and services connected with the Movement Tracking System (MTS) that it is supplying to the U.S. Army.

This is the third large round of MTS-related orders that the Army has awarded to Comtech. All were awarded to the company's Maryland-based Comtech Mobile Datacom Corporation subsidiary. Comtech has an eight-year contract with a potential total value of $418 million to provide the Army's Logistics Command with the new MTS for tracking mobile assets and communicating with them in real time.

These latest orders cover satellite tracking and messaging equipment for Army logistics vehicles and mobile control stations as well as associated satellite-based communications services. They bring the number of MTS units ordered to date to over 1200. Units covered by these new orders will be delivered in the first quarter of Comtech's 2002 fiscal year, which begins on August 1, 2001.

Comtech will install equipment on a variety of vehicles and also train the Army's MTS operators in the use of the tracking and messaging applications that are part of the system.

Col. Stephen Broughall, the US Army's MTS Project Manager, said the MTS program achieved a major milestone this month when it met all requirements and received a Full Production Decision from Mr. Kevin Carroll, the Program Executive Officer for Standard Army Management Information Systems. This decision permits the MTS Project Office to begin fielding the system throughout the entire Army.

"This is one of the most streamlined procurement decisions I've seen for an Army system", said Col. Broughall. "Its speed reflects not only the high priority placed on fielding this system by the Army, but the strong cooperation between Comtech and our project office in successfully completing all the necessary tests and evaluations."

Fred Kornberg, President and Chief Executive Officer of Comtech Telecommunications, said the Army's Procurement Decision encourages the company to expect more rapid deployment of the MTS system in the year ahead.

"This is further evidence that MTS has the potential to become a globally important program for the Army, a potential that is being achieved at what now promises to be an accelerating rate," Mr. Kornberg said. "And as the Army program moves forward, its successes give us new reason to be enthusiastic about the prospect of our mobile data communications services technology serving other military and government users as well as commercial applications around the world. The technology offers exceptional tracking and communications benefits to operators of fleets of trucks and other motor vehicles, ships and aircraft."

Comtech Mobile Datacom Corp., 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. To learn more about the Company, please visit the Company's website at www.comtechmobile.com.

Comtech Telecommunications Corp. is an innovative player in the 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 275 distinct Comtech products are in service in more than 100 countries.