L-3 Communications Pioneers Next-Generation Cargo Container Security System in Partnership with U.S. Department of Homeland Security


NEW YORK --Aug. 29, 2006--L-3 Communications (NYSE: LLL): -- L-3 to develop fully integrated cargo container security device to ensure supply chain integrity, automatically detecting threats that no other sealed cargo screening technology can discover in real time, including human beings, unauthorized entries or container breaches L-3 Communications (NYSE: LLL) announced today that its Security and Detection Systems subsidiary has been selected by the Homeland Security Advanced Research Projects Agency (HSARPA) to provide 30 state-of-the-art prototype cargo container security devices for field testing.

L-3 is one of two companies downselected from an original five to receive Phase II funding from HSARPA for the development of the cargo container security devices. The cost-share program uses government and corporate funding valued at over $5 million.
L-3's innovative Advanced Container Security Device (ACSD) will continually track the sequence of a cargo container's journey from the moment it is sealed until it is released at its final destination. Designed to automatically identify tampering at any point in the container's passage, ACSD will detect breaches and unauthorized access, alerting authorities to potential threats of national security, contraband smuggling, theft, human trafficking and stowaways.

Using advanced sensor design and fusion techniques, ACSD provides a true depiction of a container's condition at every step in the supply chain, in real-time, through a communications network that will make data available to shippers, carriers and law enforcement. In addition to monitoring the container's physical status, ACSD will indicate any breach of the container through walls, doors or floors, and detect the presence of human beings inside the container, which can give officials an early warning of potential cargo theft, product tampering, or the presence of contraband, or explosives and other threat materials.

"L-3's ACSD solution provides security officials with invaluable information throughout the movement of the supply chain, and give them meaningful, real-time data they need to stop smugglers, thieves, and other threats, while keeping commerce moving swiftly and safely," said Craig P. Coy, president and chief operating officer of L-3's Homeland Security Group.

ACSD will have the highest detection probabilities and the lowest false alarm rates of any cargo security device in the industry. ACSD is designed to be virtually foolproof and tamperproof. Its multi-sensor design will help ensure that no security breach will go unnoticed - no matter how resourceful the criminal.

Additionally, the unit's forward-thinking, space-saving design does not consume valuable cargo space. Created to withstand the rigors of maritime shipping, L-3's robust ACSD will resist shock, vibration, temperature, humidity, corrosion, stress and strain. Fully modular, scalable, and easy to upgrade, ACSD will be easily incorporated into standard port operations and is designed to be affordable for the maritime shipping industry.

"Our goal is to make cargo transport safer and more secure than ever and we are well under way in the development of a device that is compatible with existing and new containers and that can be easily implemented at ports anywhere in the world," noted Mr. Coy. "In emphasizing user-friendliness and flexibility, we are making this novel technology accessible and convenient to implement. In addition to strengthening supply chain security at ports, this integrated technology will naturally lend itself to other multi-modal transportation applications including air cargo, rail and trucking."
With a broad range of systems and technology, and an installed base of more than 18,000 systems worldwide, L-3 Security and Detection Systems offers screening technologies for numerous security applications that include: (1) aviation systems for hold baggage explosives detection, oversized baggage, and checkpoint screening; (2) cargo and air freight screening; (3) port and border inspection; and (4) facility protection. L-3 Security and Detection Systems' customer base includes major airlines, airports, numerous government agencies around the world (including the U.S. Department of Homeland Security, U.S. Federal Protective Service, U.S. Department of State and U.S. Department of Agriculture), and international authorities throughout Europe, the Middle East, Africa, Asia and Latin America.

To learn more about L-3 Communications Security and Detection Systems, please visit the company's website at L-3com.com/xray.

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

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

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