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Comtech Telecommunications Completes Acquisitiion of RF Microwave Amplifier Business

May 1, 2001 at 12:00 AM EDT
Comtech Telecommunications Completes Acquisitiion of RF Microwave Amplifier Business Melville, N.Y. - May 1, 2001 - Comtech Telecommunications Corporation (Nasdaq: CMTL) announced today the completion of the acquisition of the commercial satellite, medical and government RF microwave amplifier product line of MPD Technologies, Inc., for $11 million in cash, subject to post closing adjustments.

The acquisition is being accounted for as a purchase and is expected to be accretive to earnings in fiscal year 2002. Ten million dollars of the purchase price was supplied through institutional secured borrowings bearing interest at 8.5% due in 2005, and the balance from internal Company funds.

The acquired product line, will be combined with the Comtech PST Corp. subsidiary in Melville, New York, and will enhance Comtech's RF Microwave Amplifier segment product offerings and market presence, specifically in the satellite and medical areas.

Fred Kornberg, Chairman, President and Chief Executive Officer of Comtech Telecommunications, said, "This product line acquisition is a natural extension of our RF Microwave Amplifier business. Combining complementary capabilities and product lines gives our Comtech PST subsidiary a strong platform from which to bring innovative products to the RF Microwave Amplifiers market."

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.