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Comtech Telecommunications Announces Agreement to Acquire Satellite Communications Business

May 30, 2000 at 12:00 AM EDT
Comtech Telecommunications Announces Agreement to Acquire Satellite Communications Business MELVILLE, NY - May 30, 2000 - Comtech Telecommunications Corp. (Nasdaq: CMTL) announced today that it has entered into an agreement to acquire the business of EFData, the satellite communications division of Adaptive Broadband Corporation for $61.5 million cash.

Closing of the transaction is expected by June 30, 2000 subject to normal conditions, including review by antitrust regulatory authorities, Comtech board of directors approval and completion of satisfactory financing by Comtech.

EFData, which had revenues of $92 million in the 12 months ended March 31, 2000, designs, develops and manufactures a wide range of satellite communications products for the transmission of voice, data, facsimile and video. EF Data is based in Tempe, Arizona, and will be combined with the Comtech Communications Corporation subsidiary, which also produces equipment used in satellite communications and is also based in Tempe.

Fred Kornberg, Chairman, President and Chief Executive Officer of Comtech Telecommunications, said the acquired business will be accretive to Comtech's earnings from the start and represents an exciting expansion of Comtech's growing telecommunications segment operations and opportunities.

"With revenues approaching $100 million, EFData (comtechefdata.com) will greatly expand our capabilities in the telecommunications market, specifically in the modem and transceiver areas," Mr. Kornberg said. "Currently our revenues in this area are in the neighborhood of $12 million per year, so this acquisition gives us a much more substantial market presence."

Mr. Kornberg added, "What's just as exciting, EFData gives us a position and entry into the satellite networks solutions business, a high-potential market segment that we have not been in until now. This high growth area gives us a whole new field of opportunity for our technological capabilities."

Comtech Telecommunications Corp. is an innovative and increasingly significant 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 site and other wireless communications systems. More than 250 distinct Comtech products are in service in more than 100 countries.