3G Player Acquired

Above shows one of Aeroflex's products - the PN9002 Pulse-to-Pulse Stability Test System.

US : Aeroflex Incorporated, a leading designer, developer and manufacturer of automated testing solutions and microelectronics for the aerospace, defense and broadband communications markets, announced that it has acquired the Racal Wireless Solutions Group for cash of $38 million and a deferred payment of up to $16.5 million in either cash or Aeroflex common stock, at Aeroflex’s option, depending on the Wireless Solutions Group achieving certain performance goals for the year ending July 31, 2004.

Racal Wireless is a leading developer, manufacturer and integrator of digital wireless testing and measurement solutions. Its products address two primary wireless applications – infrastructure testing and mobile handset testing. The Wireless Solutions Group’s broad suite of test systems support all product life-cycle stages, including research and development, conformance, production, installation and commissioning, field service and network optimization, as well as nearly all 2G, 2.5G and 3G wireless standards.

“The addition of Racal Wireless testing solutions products and technologies to our current product offerings will enable Aeroflex to provide a full spectrum of wireless testing solutions, from development to production and service,” said Michael Gorin, President. “The Racal Instruments name is recognized worldwide as a leading edge provider of wireless testing solutions which has garnered them a top tier customer base. We expect that the proximity of the Racal Wireless U.K. facility to our existing U.K. operations will provide the two operations with the opportunity to share their respective expertise and achieve certain synergies.

“For calendar 2002, Racal Wireless had sales of approximately $50 million with profitable operations. For the period of our ownership in our fiscal year ended June 30, 2004, we anticipate that Racal Wireless will contribute over $40 million in sales and be accretive to our earnings in the second half of our fiscal year.”