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Comtech Receives Second Mobile Data Communications Order From Customer In Venezuela

August 14, 2001 at 12:00 AM EDT
Comtech Receives Second Mobile Data Communications Order From Customer In Venezuela
  • Value Will Exceed $2.4 Million Over Three Years
  • Customer Placed Program's First International Order In May
MELVILLE, NY -- August 14, 2001 - Comtech Telecommunications Corp. (Nasdaq: CMTL) announced today that it has received a new order for equipment and services connected with its mobile data communications system from a value-added reseller in Venezuela.

This is the second order placed by the Venezuelan customer, which earlier this year became the first international purchaser of the system developed by Comtech for the U.S. Army and a wide variety of other government and commercial applications. The system permits operators of trucks, aircraft, ships and other mobile units to monitor the movements of their units and communicate with them on a real-time basis. It also permits individual mobile units to communicate with each other.

The new order, received by Comtech's Mobile Datacom Corp. subsidiary in Maryland, includes 1,000 mobile earth terminals, satellite service and associated technical support. It also covers the satellite capacity needed for operation of the system in Venezuela, and its value is expected to exceed $2.4 million over the next three years. Deliveries will begin immediately.

In the past six months a total of 1,500 mobile terminals have been ordered for use in Venezuela, all by the same value-added reseller. Five hundred have already been delivered and installation has begun. The terminals will be mounted on commercial trucks and used for tracking the vehicles and messaging with headquarters.

Fred Kornberg, Comtech's chairman and chief executive officer, said Comtech's Venezuela partner is preparing to begin offering mobile data communications services to truckers before the end of August.

"Some of the largest trucking companies in Venezuela will soon be using the tracking and messaging services made possible by our satellite-based system," Mr. Kornberg said. "We are looking as well at the potential for expanding service to the Venezuelan oil and gas exploration and distribution industries. We see a tremendous potential for our system in Venezuela".

The system's terminals operate through Comtech's network and satellite capacity, leased by Mobile Datacom from TMI, owner and operator of the MSAT-1 satellite. Comtech provides its satellite-based services through a license granted by the Federal Communications Commission in January, 2001. Comtech has authorization to operate up to 25,000 mobile data terminals under this license.

The U.S. Army's logistics command is employing a version of this system as part of its Movement Tracking System (MTS). Comtech is doing its MTS work under an eight-year Army contract with a total potential value in excess of $400 million. More than 1,200 units have been ordered by the Army thus far. Comtech's mobile data communications system employs virtually the same mobile terminals and network for both commercial and military applications.

The service being offered to shippers by the value-added reseller in Venezuela will involve communications from the mobile terminals through the satellite to a data center installed in Caracas by Comtech, and from the data center via Internet and dial-up connection to the customer. Comtech's Germantown, Maryland gateway will serve as a backup to the facility in Caracas.

Comtech Mobile Datacom Corp.(www.comtechmobile.com), 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 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.