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Comtech Telecommunications Corp. Completes EF Data Integration with Its Arizona Subsidiary and Expects to Report Record Results

October 4, 2000 at 12:00 AM EDT
Comtech Telecommunications Corp. Completes EF Data Integration with Its Arizona Subsidiary and Expects to Report Record Results

- Comtech EF Data is the New Identity of our Powerhouse Combination of Comtech Communications and EF Data
- Record 2000 Revenues, Earnings and EPS Excluding Non-recurring Items, Expected to be Reported

MELVILLE, NY - October 4, 2000 - Comtech Telecommunications Corp. (Nasdaq: CMTL) announced today the successful completion of the integration of Comtech Communications and EF Data into a newly formed subsidiary Comtech EF Data.

Fred Kornberg, President and CEO, said "Comtech EF Data Corp., the new identity of our powerhouse combination, synergistically meshes the people and operations of the technology innovator of frequency converters, high power amplifiers, transceivers and modems, with those of the premier provider of satellite modems and transceivers, giving systems integrators and network suppliers the one-stop-shop we believe they want and need. We see this significantly enhanced operation as a big building block in Comtech's future."

Post closing adjustments, agreed upon with the seller, adjust the final purchase price to $52.5 million from $61.5 million. Comtech expects to report a fourth quarter non-recurring charge of $10.2 million for EF Data's in-process R & D and a restructuring charge of about $240 thousand primarily for costs associated with remaining lease obligations on the former Comtech Communications Corp. facility and the integration and consolidation of facilities and workforces.

Fred Kornberg, President and CEO said "Excluding non-recurring items we expect to report later this month, record revenues, earnings and earnings per share for fiscal 2000 which, over the six-year period then ended, is expected to show a compound annual growth rate in revenues and earnings greater than 30%."

Comtech Telecommunications Corp. 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 275 distinct Comtech products are in service in more than 100 countries.