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April 22, 2009

Comtech Mobile receives $102m US Army contract

Comtech's Model MT-2012 mobile satellite transceiver features Savi Technology's EchoPoint RFID Reader as well as GPS capabilities

By CBR Staff Writer

Comtech Telecommunications has announced that its subsidiary Comtech Mobile Datacom has received orders totaling $102.1m under its Movement Tracking System, or MTS contract, with the US Army. Total orders received to date against the $605.1m MTS contract increased to $529.1m.

According to the company, the $102.1m of orders includes approximately $97.2m for the supply of MTS V2 systems, which feature Comtech’s Model MT-2012 mobile satellite transceivers integrated with a newly upgraded ruggedized tablet computer, installation kits, technical support, engineering services and user training.

These orders also include satellite network bandwidth for Afghanistan-related operations. Comtech’s Model MT-2012 mobile satellite transceiver features Savi Technology’s ISO-compliant EchoPoint RFID Reader, as well as GPS capabilities. Almost all of these deliveries are expected to commence in Comtech’s fiscal 2010.

A substantial portion of these orders include newly upgraded ruggedized tablet computers that are manufactured by a third-party vendor and, as such, the margin profile is expected to be significantly lower than historical MTS orders that included a different ruggedized computer.

Separately, the company received a $4.9m order under its MTS contract for ruggedized laptop computers and related accessories that were immediately shipped to address operational needs in Afghanistan.

Fred Kornberg, president and CEO of Comtech Telecommunications, said: Although this order provides tangible evidence that fiscal 2010 will be better than we thought just a few short weeks ago, we continue to take a cautious and realistic approach as we look to fiscal 2010. Our commercial markets remain challenging and soft; however, I have no doubt that all three of our business segments will continue to build upon their existing leadership positions during these extraordinary economic times.

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