COM DEV Acquires Passive Microwave Devices Product Line From L-3 Communications

    $12.2 million transaction accelerates Company's entry into US Government
    Space market

    EL SEGUNDO, CA, Feb. 12 /CNW/ - COM DEV USA, LLC, a subsidiary of COM DEV
International Ltd. (TSX: CDV), today announced that it has reached an
agreement with L-3 Communications to acquire the Passive Microwave Devices
product line of L-3 Communications Electron Technologies Inc. (referred to in
this news release as "ETI-PMD") for $12.2 million. (All figures are expressed
in US dollars.) The ETI-PMD group has a 35 year history as a key supplier to
the US space market and has a contract backlog which includes a number of
legacy contracts on major ongoing US government and commercial satellite
programs. ETI-PMD's 65 employees and its assets and equipment will be
transferred from their existing location in Torrance, CA to COM DEV's recently
purchased production facility in El Segundo, CA, approximately 10 miles away.
    "The acquisition of a business with an established revenue stream
accelerates our entry into the US Government space market, and vaults COM DEV
into a leadership position among US suppliers of passive microwave equipment
for space," said John Keating, CEO of COM DEV International. "We think this
business is a great fit with our core capabilities and strategic objectives,
and we plan to grow it aggressively. I'd like to extend a warm welcome to the
team of highly skilled and experienced employees who will be joining our
    Originally a unit of Hughes Electronics Corp, ETI was purchased by Boeing
as part of a larger transaction in 2000, and subsequently sold to L-3
Communications in early 2005. The Passive Microwave Devices product line has
over 35 years of experience on more than 100 US satellite programs designing
and producing space qualified passive microwave components including
multiplexers, filters, switches and ancillary components. COM DEV will be
acquiring significant intellectual property resources developed over that
35-year history, including over 100 patents.
    "We are very pleased to strengthen COM DEV USA by adding a team with more
than 1000 combined person-years of experience, as well as a significant body
of intellectual property dating back to the time this business was part of
Hughes," said Dan White, President of COM DEV USA. "We believe this
transaction creates a passive microwave subsystem powerhouse that will become
an integral supplier to the US Government prime contractors."
    COM DEV plans to finance the ETI-PMD purchase through existing cash
resources and borrowing facilities. As a result of assets acquired in the
transaction, the Company expects to forego $5.5 million of capital
expenditures previously estimated to be required to fund the build-out of its
California operation. Management anticipates that COM DEV USA will be
profitable in the Company's current fiscal year ending October 31, 2008.
    The ETI-PMD transaction, which is subject to regulatory approval, is
expected to close within the next three months. The final purchase price will
be subject to certain closing adjustments.

    About COM DEV

    COM DEV International Ltd. ( is a leading global
designer and manufacturer of space hardware subsystems. With facilities in
Canada, the United Kingdom and the United States, COM DEV manufactures
advanced products and subsystems that are sold to major satellite prime
contractors for use in communications, space science, remote sensing and
military satellites.

    COM DEV and COM DEV USA are registered trademarks of COM DEV
International Ltd. This news release may contain certain forward-looking
statements that involve risks and uncertainties. Actual results may differ
materially from results indicated in any forward-looking statements. The
Company cautions that, among other things, in view of the rapid changes in
communications markets and technologies, and other risks including the cost
and market acceptance of the Company's new products, the level of individual
customer procurements and competitive product offerings and pricing, and
general economic circumstances, the Company's business prospects may be
materially different from forward-looking statements made by the Company.

    %SEDAR: 00003673E

For further information:

For further information: Gary Calhoun, Chief Financial Officer, COM DEV
International, Tel: (519) 622-2300 ext. 2826,; Dan
White, President, COM DEV USA, Tel: (424) 456-8006,;
Jeff Codispodi, The Equicom Group, Tel: (416) 815-0700 ext. 261,

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