Communications & Power Industries Completes Acquisition of Malibu Research Associates


PALO ALTO, Calif., August 10 / -- Communications & Power Industries, Inc. (CPI), a leading provider of microwave, radio frequency, power and control solutions for critical defense, communications, medical, scientific and other applications, has completed its acquisition of Malibu Research Associates, Inc., a leader in the design, manufacture and integration of advanced antenna systems for radar, radar simulators and telemetry systems, as well as for strategically vital data links used in ground, airborne, unmanned aerial vehicles (UAV) and shipboard systems.

Under the terms of the acquisition, which was previously announced on June 28, 2007, CPI, a subsidiary of CPI International, Inc. (NASDAQ:CPII), purchased all outstanding common stock of Malibu Research Associates, a privately held company, for approximately $22.0 million in cash. The acquisition was funded entirely from CPI's cash on hand. CPI has agreed to make up to $15.0 million in additional earnout payments, which are primarily contingent upon the achievement of certain financial objectives over the three years following the acquisition. Malibu Research Associates will remain headquartered in Camarillo, Calif., where it will operate as an independent division of CPI. The division manager of Malibu Research Associates will report directly to Bob Fickett, president and chief operating officer of CPI.

The acquisition will expand CPI's product offering to both new and existing customers in the radar, electronic warfare and communications markets. Malibu Research Associates' customers include major aerospace and defense contractors and government agencies. Its current programs include advanced antenna solutions for the airborne and ground nodes of the tactical common data link (TCDL) network for various platforms, including UAVs. TCDL is a high-bandwidth digital data link that transmits and receives real-time command and control, intelligence, surveillance and reconnaissance data between manned and unmanned airborne platforms and their associated ground-based and ship-based terminals.

"We look forward to working with the team at Malibu Research Associates to manufacture and distribute their cutting-edge radar and communications products using CPI's established production capabilities and extensive global sales channels," said Joe Caldarelli, chief executive officer of CPI. "This acquisition furthers CPI's goal of providing complementary, technologically advanced products and services to our existing markets and customers, while gaining innovative technology and exciting opportunities for future growth."

The acquisition is expected to be slightly accretive in fiscal 2008, excluding the impact of purchase accounting, and increasingly accretive in fiscal 2009.

About CPI International, Inc.
CPI International, Inc., headquartered in Palo Alto, California, is the parent company of Communications & Power Industries, Inc., a leading provider of microwave, radio frequency, power and control solutions for critical defense, communications, medical, scientific and other applications. Communications & Power Industries, Inc. develops, manufactures and distributes products used to generate, amplify and transmit high-power/high-frequency microwave and radio frequency signals and/or provide power and control for various applications. End-use applications of these systems include the transmission of radar signals for navigation and location; transmission of deception signals for electronic countermeasures; transmission and amplification of voice, data and video signals for broadcasting, Internet and other types of communications; providing power and control for medical diagnostic imaging; and generating microwave energy for radiation therapy in the treatment of cancer and for various industrial and scientific applications.

Source: CPI International, Inc.

CONTACT:Amanda Mogin, investor relations of CPI International, Inc.,
+1-650-846-3998, amanda.mogin@cpii.com

Web site: http://www.cpii.com/

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