L-3 Communications' Integrated Systems and QinetiQ Sign Memorandum of Understanding for ISTAR and ISR Program Collaboration

"L-3's experience in technology planning, mission systemintegration and platform integration, combined with QinetiQ'sexpertise in developing advanced defense technology productsrepresents a formidable team in the ISTAR and ISR marketplace," saidBob Drewes, president and chief operating officer of L-3 IS. "We lookforward to our efforts bringing substantial capability benefits to ourmutual customers in the critical ISTAR/ISR mission area."

"QinetiQ brings planning and development of technology productsfor knowledge and information systems and sensors to the partnership,"said Steven Brittan, managing director of QinetiQ's Spectrum SolutionsDivision. "This MoU will enable both parties to offer customerssignificant value in advancing ISTAR and ISR capabilities for thedefense departments of the United States and the United Kingdom, aswell as other countries."

QinetiQ's experience lies in developing advanced defensetechnology products such as electronic sensors and knowledge andinformation systems which support ISTAR and ISR.

L-3 IS has experience in the planning and insertion of advancedtechnologies for ISTAR and ISR programs. This includes providingoperational domain expertise, systems engineering, integration ofadvanced technology sensors and mission systems and platformintegration for ISTAR and ISR capabilities.

L-3 IS is recognized internationally as a system integrationorganization specializing in the modernization and maintenance ofaircraft of all sizes, and the study, design, development, andintegration of special mission systems for military and commercialapplications. The company has modified more than 15,000 differentaircraft of more than 125 types. Headquartered in Greenville, Texas,L-3 IS operates from multiple sites in Texas, Mississippi, Kentucky,Oklahoma, Virginia, Maryland, Alabama and Australia.

Headquartered in New York City, L-3 Communications is a leadingprovider of Intelligence, Surveillance and Reconnaissance (ISR)systems, secure communications systems, aircraft modernization,training and government services. The company is a leading merchantsupplier of a broad array of high technology products, includingguidance and navigation, sensors, scanners, fuzes, data links,propulsion systems, simulators, avionics, electro optics, satellitecommunications, electrical power equipment, encryption, signalintelligence, antennas and microwave components. L-3 also supports avariety of Homeland Security initiatives with products and services.Its customers include the Department of Defense, Department ofHomeland Security, selected U.S. Government intelligence agencies andaerospace prime contractors.

To learn more about L-3 Communications, please visit the company'sweb site at www.L-3Com.com.

QinetiQ is a leading global defense technology and securitycompany. Founded in July 2001 from the majority of the DefenceEvaluation and Research Agency (DERA), the laboratories of the UKMinistry of Defence (MOD), QinetiQ today has grown internationallywith around 11,500 employees in the UK and U.S., many of theminternationally acclaimed experts, providing government and commercialcustomers sophisticated resources to create, evaluate, test anddeliver technology-based services, solutions and products.

As part of its growing security business, recently launchedproducts include: Tarsier - radar system to identify debris on anairport runway; BorderWatch - to see into vehicles to identifypossible stowaways; Millimeter wave scanning - people screeningsystems to identify concealed weapons; Ferroguard - a man-portablemetal detection system; and X-net - a system to stop vehicles beingdriven through checkpoints.

QinetiQ has developed a significant overseas customer base and hasestablished a U.S. sales operation in Crystal City, near WashingtonD.C. to forge closer links with this potentially significant market.In October 2004, QinetiQ acquired the businesses of Foster-Miller,Inc. In November 2004, it acquired Wester Aerospace & Defense Groupand in September 2005, it acquired Apogen Technologies, Inc. All arewholly-owned subsidiaries of QinetiQ North America, but remainautonomous, retaining their names, core management teams, employeesand U.S. facilities. Also in September 2005, Foster-Miller acquiredPlanning Systems Inc. and QinetiQ acquired a 90% share of VerhaertDesign and Development NV (VDD), the leading Belgian space systemsintegrator, which is being renamed Verhaert Space NV.

QinetiQ's annual results, released in July 2005, highlighted a33.1% rise in operating profits to 69.6 million pounds on turnoverwhich rose by 9.7% to 872.4 million pounds and EBITDA beforeexceptional items of 108.0 million pounds. These results were drivenby a step change increase in business from North American customers.

The MOD holds a 56% stake in QinetiQ and in February 2003confirmed The Carlyle Group, one of the world's leading private equityfirms, as the strategic partner by taking a 31% stake. The balance isheld by staff.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATIONREFORM ACT OF 1995

Except for historical information contained herein, the mattersset forth in this news release are forward-looking statements. Theforward-looking statements set forth above involve a number of risksand uncertainties that could cause actual results to differ materiallyfrom any such statement, including the risks and uncertaintiesdiscussed in the company's Safe Harbor Compliance Statement forForward-looking Statements included in the company's recent filings,including Forms 10-K and 10-Q, with the Securities and ExchangeCommission. The forward-looking statements speak only as of the datemade, and the company undertakes no obligation to update theseforward-looking statements.