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Comtech Telecommunications Announces Agreement to Acquire RF Microwave Amplifier Business

March 5, 2001 at 12:00 AM EST
Comtech Telecommunications Announces Agreement to Acquire RF Microwave Amplifier Business Melville, New York - March 5, 2001 - Comtech Telecommunications Corporation (Nasdaq: CMTL) announced today that it has entered into an agreement to acquire the commercial satellite, medical and government RF microwave amplifier product lines of MPD Technologies, Inc., for $11 million in cash, subject to adjustment.

Closing of the transaction is expected on or about April 30, 2001, subject to customary conditions.

MPD Technologies, Inc., based in Hauppauge, New York, designs, develops and manufactures a wide range of linear power amplifiers and related subsystems for the wireless telecommunications market. In addition the company also designs and manufactures high-power amplifiers for commercial satellite communications, for medical applications and for the government market.

The satellite, medical and government RF microwave amplifier product line and contracts acquired from MPD Technologies Inc. will be combined with the Comtech PST Corp. subsidiary based in Melville, New York which also produces RF microwave amplifier products used in wireless and cellular communications, instrumentation, and government applications.

Fred Kornberg, Chairman, President and Chief Executive Officer of Comtech Telecommunications, said the acquired business represents an exciting expansion of Comtech's RF microwave amplifier segment operations and opportunities, specifically in the satellite and medical areas.

Mr. Kornberg said, "Revenues in this segment last fiscal year were approximately $12 million. This acquisition gives us a much more substantial market, customer and technology presence and should more than double our revenues in this segment area on an annual basis starting in the next fiscal year."

Mr. Kornberg added, "What's also exciting is this acquisition gives us a position and entry into the medical RF microwave amplifier business, a market segment that we have not been in until now. This gives us a whole new field of opportunity for our technological capabilities."

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 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.