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L-3 Agrees to Acquire Kollmorgen Electro-Optical

Adds New EO/IR Capabilities and Product Lines

NEW YORK--(BUSINESS WIRE)--Dec. 13, 2011-- L-3 Communications (NYSE: LLL) announced today that it has entered into an agreement to acquire the Kollmorgen Electro-Optical (KEO) unit of Danaher Corporation. KEO develops and manufactures specialized equipment, including submarine photonics systems and periscopes, ship fire control systems, visual landing aids, ground electro-optical and sensor-cueing systems. Headquartered in Northampton, Mass., and with facilities in Bologna, Italy, KEO employs approximately 550 people. KEO’s products are used by the U.S. military, prime contractors and allied nations. The purchase price is $210 million and will be funded with cash on hand.

The acquisition is anticipated to be completed in the first quarter of 2012, subject to customary closing conditions and regulatory approvals, and will be structured as an asset purchase for income tax purposes. For the year ending December 31, 2012, KEO is expected to generate sales in the range of approximately $160 million to $170 million, and estimated earnings before interest, taxes, depreciation and amortization before giving effect to the expected synergies, transaction costs, and purchase accounting adjustments (EBITDA) in the range of $26 million to $30 million. Upon closing, the acquisition is expected to be immediately accretive to L-3’s results of operations.

“KEO’s unique and proprietary systems support high-priority DoD programs, expand our existing product portfolio and create a variety of technical synergies and product pull-through opportunities that are applicable across L-3,” said Michael T. Strianese, L-3’s chairman, president and chief executive officer. “Taken together, KEO adds important new capabilities and serves as an example of L-3 successfully executing its acquisition strategy.”

Pending the successful completion of this transaction, KEO will become part of L-3’s Integrated Sensor Systems organization. The Integrated Sensor Systems Sector currently includes L-3’s existing electro-optical/infrared (EO/IR) businesses addressing the air, ground and maritime markets and is reported in L-3’s Electronic Systems segment.

“KEO expands and broadens our base in the EO/IR market, a key strategic growth area for L-3, and strengthens our position as a mission-critical sensor systems provider,” added Wes Motooka, president of L-3’s Integrated Sensor Systems Sector.

Mr. Motooka noted that KEO’s technologies provide situational awareness and will enhance current L-3 products, including ISR and targeting sensors, infrared imagers, laser range finders and optical assemblies.

Headquartered in New York City, L-3 Communications employs approximately 61,000 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 2010 sales of $15.7 billion.

To learn more about L-3, please visit the company's website at www.L-3com.com. L-3 uses its website as a channel of distribution of material company information. Financial and other material information regarding L-3 is routinely posted on the company’s website 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,” “will,” “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

L-3 Communications
Corporate Communications, 212-697-1111