Comtech Telecommunications Corp. Receives Unsuccessful Offeror Letter for Blue Force Tracking-2 Program

Friday, Jul 23, 2010

Comtech Telecommunications
Corp. (Nasdaq:CMTL) announced today that its Maryland-based subsidiary,
Comtech Mobile Datacom Corporation, has been advised by the U.S. Army
Contracting Command-CECOM Contracting Center that it was not selected as the
program manager and vendor for the Force XXI Battle Command Brigade and
Below, Blue Force Tracking 2
(FBCB2-BFT-2) program.

The Contracting Center also advised Comtech that an award was made to a
third-party vendor based on a total evaluated price of $249.9 million which
is approximately 50% lower than the total evaluated price of Comtech's BFT-2
proposal. This $249.9 million award implies that the
BFT-2 program will spend an average of approximately $41.7 million per year
on BFT-2 services and hardware based on a six-year anticipated roll-out.

Fred Kornberg, President and Chief Executive Officer of Comtech
Telecommunications Corp., said, "Given our proven performance during a
war-time environment, the performance capability of our BFT-HC transceiver
and our belief that Comtech offers a lower overall program risk to the U.S
Army as well as other factors, we anticipate protesting the award given to
the third party."

Comtech's current BFT-1 contract of $384.0 million enables the U.S.
Army to place orders through December 2011. Total orders received to date
against the BFT-1 contract are $262.7 million. Comtech's existing
BFT-1 program is expected to generate approximately $50.0 million of revenue
in fiscal 2010 of which approximately $30.0 million relates to satellite
network bandwidth and network operational services. Assuming the BFT-2
contract award is not overturned, Comtech anticipates that
BFT-1 satellite network bandwidth and network operational services will
approximate $30.0 million in annual revenue for fiscal 2011 and will decline
thereafter through fiscal 2015. The ultimate amount of BFT-1 revenue in any
future fiscal year will likely depend on the speed of the transition to the
BFT-2 network and future U.S. Army operational needs. In addition, the
Company expects to continue to perform and generate revenue under its
current MTS contract as well as participate in the solicitation process for
the next-generation MTS contract.

Comtech Mobile Datacom Corporation, a Germantown, Maryland-based company, is
engaged in the provision of satellite-based packet data communication
systems and location and messaging services through the use of advanced
communication and network technology. To learn more about Comtech Mobile
Datacom, please visit the company's website at www.comtechmobile.com.

Source: Globe Newswire