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L-3 Communications Initiates Full Redemption for its Outstanding 6 1/8% Senior Subordinated Notes Due 2014 and 2013

NEW YORK, May 21, 2010 (BUSINESS WIRE) --L-3 Communications Holdings, Inc. (NYSE: LLL) announced today that L-3 Communications Corporation, its wholly owned subsidiary, has initiated a full redemption of its outstanding $400 million 6â...'% Senior Subordinated Notes due in 2014 (the "2014 Notes") and its outstanding $400 million 6â...'% Senior Subordinated Notes due in 2013 (the "2013 Notes").

The 2014 Notes will be redeemed on June 21, 2010, at a redemption price of 102.042% of the principal amount thereof, plus accrued and unpaid interest to June 21, 2010. On or before June 21, 2010, the 2014 Notes should be presented to The Bank of New York Mellon, as paying agent for the redemption, at the address set forth in the Notice of Redemption for the 2014 Notes. The Notice of Redemption for the 2014 Notes was sent to all registered holders on May 21, 2010. Interest on the 2014 Notes will cease to accrue on and after June 21, 2010 and the only remaining right of holders of the 2014 Notes is to receive payment of the redemption price upon surrender to the paying agent, plus accrued and unpaid interest up to, but not including, June 21, 2010.

The 2013 Notes will be redeemed on July 15, 2010, at a redemption price of 101.021% of the principal amount thereof, plus accrued and unpaid interest to July 15, 2010. On or before July 15, 2010, the 2013 Notes should be presented to The Bank of New York Mellon, as paying agent for the redemption, at the address set forth in the Notice of Redemption for the 2013 Notes. The Notice of Redemption for the 2013 Notes was sent to all registered holders on May 21, 2010. Interest on the 2013 Notes will cease to accrue on and after July 15, 2010 and the only remaining right of holders of the 2013 Notes is to receive payment of the redemption price upon surrender to the paying agent, plus accrued and unpaid interest up to, but not including, July 15, 2010.

In connection with the redemption of the 2014 Notes and 2013 Notes, the company will record a debt retirement charge of $18 million ($11 million after income taxes, or $0.09 per diluted share) of which $13 million ($8 million after income taxes, or $0.07 per diluted share) will be recorded in the second quarter of 2010 and $5 million ($3 million after income taxes, or $0.02 per diluted share) will be recorded in the third quarter of 2010.

This press release shall not constitute a notice of redemption of the 2014 Notes or 2013 Notes.

Headquartered in New York City, L-3 Communications employs approximately 67,000 people worldwide and is a prime contractor in C3ISR (Command, Control, Communications, Intelligence, Surveillance and Reconnaissance) systems, aircraft modernization and maintenance and government services. L-3 is also a leading provider of a broad range of electronic systems used on military and commercial platforms. The Company reported 2009 sales of $15.6 billion.

To learn more about L-3, please visit the company's Web site at www.L-3com.com. L-3 uses its Web site as a channel of distribution of material company information. Financial and other material information regarding L-3 is routinely posted on the company's Web site and is readily accessible.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

Except for historical information contained herein, the matters set forth in this news release are forward-looking statements. Statements that are predictive in nature, that depend upon or refer to events or conditions or that include words such as "expects," "anticipates," "intends," "plans," "believes," "estimates," "could" and similar expressions are forward-looking statements. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including the risks and uncertainties discussed in the company's Safe Harbor Compliance Statement for Forward-looking Statements included in the company's recent filings, including Forms 10-K and 10-Q, with the Securities and Exchange Commission. The forward-looking statements speak only as of the date made, and the company undertakes no obligation to update these forward-looking statements.

SOURCE: L-3 Communications Holdings, Inc.

L-3 Communications Holdings, Inc.
Corporate Communications
212-697-1111