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Army Communications - Electronic Command Selects Comtech for Movement Tracking System Program - Maximum $418 Million

June 24, 1999 at 12:00 AM EDT
Army Communications - Electronic Command Selects Comtech for Movement Tracking System Program - Maximum $418 Million Melville, New York - JUNE 24, 1999 - Comtech Telecommunications Corp. (Nasdaq: CMTL) today announced that its Comtech Mobile Datacom Corp.(CMDC) subsidiary has contracted with the U.S. Army to implement the Army's Movement Tracking System (MTS). The contract calls for up to a maximum of $418 million of mobile terminals, computers and peripherals, and communications systems and services to be supplied over an 8-year period, subject to annual governmental funding, with quantities and delivery dates indefinite. The Company anticipates first year funding to approximate $10 million. The contract requires for its inception the satisfactory demonstration of the system, which is expected to occur this summer. The Company noted that other governmental departments and agencies are able to participate in this contract along with the U.S. Army.

The MTS program is a key element in the Army's intensified effort to improve total asset visibility and logistic efficiency. Comtech's system is intended to provide the Army, on a global basis, with secure, high-speed message transmission for this purpose.

"Since 1995, Comtech has been working with the Army in developing and satisfactorily testing various applications and infrastructure elements for the MTS program," said Joel Alper, President of Comtech Mobile Datacom. Alper added "the MTS system selected by the Army offers superior performance in terms of speed of messaging and information security and is capable of operating over a broad range of satellite systems."

Brent Taylor, Vice President - Program Manager of CMDC noted: "We are proud to head a team on this project which includes SCI Systems of Huntsville, Alabama, for the production of equipment; Anteon Corp. of Fairfax, Virginia for logistics support, field installation and maintenance, and systems development; PGI of Hauppauge, New York, for ruggedized computers; and Comsat Corporation for satellite access to international regions."

Comtech Mobile Datacom is engaged in the provision of satellite based packet data communication systems and services.

Comtech Telecommunications, through its operating units, is a broad based manufacturer of state-of-the-art solid state high power amplifiers and high technology satellite and troposcatter telecommunications products and systems for commercial and government applications.