( MELVILLE, N.Y., August 1, 2006 ) - Comtech Telecommunications Corp. (NASDAQ:CMTL) announced today that the U.S. Department of Defense (D.o.D.) has exercised its $18.6 million option to purchase an additional 123 troposcatter modem upgrade kits pursuant to a contract received by the Company's Orlando, Florida-based subsidiary, Comtech Systems, Inc., in May 2006. The total value of the contract, including the exercised option, is $28.3 million. The contract pricing is expected to be definitized within the next 30 days.
Comtech was selected to upgrade the D.o.D.'s AN/TRC-170 digital troposcatter terminals after laboratory trials and extensive field testing of its industry-leading over-the-horizon microwave technology. These state-of-the-art modems have demonstrated performance of in excess of 16 MB/s and include Comtech's patented Turbo Product Code forward error correction technology.
The modems also include automatic power control which allows for lower transmitted power when communication channels permit, reducing the risk of unfriendly intercept and interference with other communications. Operators can select data rates from 2 to 16 MB/s from the front panel of the modem. The increased capability of the upgraded AN/TRC-170 terminals will be used to reduce the dependence on satellite communications in areas of conflict.
Fred Kornberg, President and Chief Executive Officer of Comtech Telecommunications Corp., said, "We are excited about the D.o.D.'s exercise of this $18.6 million option, which is further evidence of the importance of this program and our technology solution."