The contract also includes an option pursuant to which the D.O.D. can purchase an additional 123 modem kits for approximately $18.6 million. The option is exercisable on or before July 31, 2006.

The contract is expected to be definitized and funded to its final negotiated ceiling price within 120 days. An abbreviated announcement regarding this award was previously posted by the D.O.D. to its website. The company received D.O.D. approval to issue this press release late this afternoon.

Comtech was selected to upgrade the D.O.D.'s AN/TRC-170 digital troposcatter terminals after laboratory trials and 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 channel conditions 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.

Comtech continues to be the world leader in digital over-the-horizon microwave troposcatter systems and modem technology and has once again demonstrated its technology superiority by introducing the first adaptive tropo modem to provide a demonstrated data rate in excess of 16 MB/s, automatic transmitted power control, and forward error correction. These latest enhancements in technology have broadened the over-the-horizon microwave market to include, among others, applications such as the transmission of color video.

These modem kits will be used by the Marine Corps, Air Force, Army and Army Reserve in their AN/TRC-170 tropo terminals and will increase the amount of Comtech digital troposcatter equipment already in use. Comtech already has its digital tropo modems in use by the Army Reserve.

The Comtech retrofitted AN/TRC-170 terminals, using the newest 16 MB/s troposcatter modem, will be backward-compatible with any non-retrofitted AN/TRC-170's, as well as compatible with the AN/TRC-175, (HMDA), the Army's newest beyond line-of-sight terminals for which Comtech has also supplied its over-the-horizon microwave troposcatter modems, radios and high power amplifiers.

Fred Kornberg, President and Chief Executive Officer of Comtech Telecommunications Corp., said, "We are extremely pleased by this very important contract award. Once again, our industry-leading technology was the key to success on a major program."

Mr. Kornberg added, "Our long-term commitment to investing in the latest innovations in the over-the-horizon microwave area has produced our latest industry leading 16 MB/s tropo modem and has firmly established Comtech as the clear leader in this growing market. We look forward to working with the U.S. Department of Defense on the TRC-170 and other important programs that may require this unique and increasingly useful technology."

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