L-3 Communications Signs Agreement With IBM

NEW YORK, March 31 -- L-3 Communications announced today it has entered into a technology, product and engineering services agreement with IBM in which it intends to combine L-3's defense, aerospace and homeland security electronics leadership with IBM's expertise in chip and system design, technology integration, customization and the assembly and manufacturing of complex microelectronics.

The five-year agreement has a total expected value for IBM of approximately $80 million. L-3 said it will initially focus on customizing and developing application-specific integrated circuits (ASICs) for a variety of products and exploring ways L-3 can incorporate a variety of technologies into future products, including IBM's POWER (performance optimization with enhanced RISC) processing architecture.

L-3 and IBM are currently working together in the following areas:

L-3's Display Systems division is collaborating with IBM to develop advanced display systems for the US military. The project combines L-3 Display Systems expertise in military packaging and display design with IBM's advanced computing and functional miniaturization expertise to create a display product for use in special operations applications.

L-3 Security and Detection Systems is working with IBM's Engineering & Technology Services (E&TS) unit to explore ways to enhance the performance of its eXaminer 3DX 6000 explosive detection system. The company's Communication Systems-West division, L-3 CS-West, is working with E&TS to use IBM's POWER architecture to enhance specific defense electronics.

"We already are engaged in several design conversations on ASICs, and we expect the number of L-3 divisions working with IBM under the agreement will expand over time," said Pat Toole, general manager, IBM Engineering & Technology Services. "Working cooperatively, we will create new, innovative and cost-effective solutions."

For more information, visit: www.L-3Com.com