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L-3 acquires CyTerra, SafeView, bolsters homeland security position

Published 22 March 2006

We reported yesterday that British defense contractor BAE is considering acquiring New York-based L-3 Communications (NYSE: LLL) in order to increase its presence in the homeland security market and enhance its activities in the United States. L-3 has just acquired two companies — CyTerra and SafeView — which will bolster its homeland security offerings, making it even more attractive to a suitor interested in entering the field. Frank Lanza, chairman and CEO of L-3 Communications, said that “These two companies are leaders in threat detection technology and are highly synergistic with our existing Security and Detection Systems (S&DS) business.” S&DS already has an installed base of more than 18,000 systems, and is considered a leading supplier of products for aviation, rail, and cargo screening, port and border inspection, and facility and infrastructure security. L-3 also has offerings in intrusion detection and maritime and port security.

Advanced security sensor technology will play a large part in products supporting homeland security and military markets across the board,” Lanza continued. “Funding for homeland security efforts will continue to accelerate, in light of the continuing terrorist threat?. We anticipate increased federal funding to supply products for border security, aviation checkpoints, maritime, cargo, port and mass transportation security and hazardous material storage.”

Orlando, Florida-based CyTerra was founded in 2000, and is a leading developer of sophisticated sensors for the military and homeland security markets. CyTerra’s dual mode sensor is based on ground penetrating radar (GPR) and magnetic technology and is used for troop protection purposes, advanced landmine detection, and state-of-the-art hidden motion detection sensors. The company also offers a Rapid Transit Passenger Screening portal for passengers which samples key areas of the body rapidly for explosive materials without the need for an operator, a process far faster than competing portals. Note that CyTerra was the only company to receive an award from DARPA to complete the development of its through-wall system for motion sensing to detect terrorists hidden behind a wide variety of wall construction materials.

Santa Clara, California-based SafeView develops and manufactures non-invasive security systems and portals for military and public safety use, including airports. SafeView’s patented active millimeter wave technology (MMW) unobtrusively detects suspicious objects by scanning the body and creating 3-D images of concealed contraband. SafeView’s patented active MMW technology was developed at the U.S. Department of Energy’s (DoE) Pacific Northwest National Lab, with additional research and development support provided by the TSA and the Federal Aviation Administration (FAA). SafeView’s portals are currently being used at border crossings in Israel, international airports such as in Mexico City and Amsterdam’s Schiphol, ferry landings in Singapore, railway stations in the United Kingdom, government buildings in The Hague and commercial buildings in Tokyo.

-read more in this news release; read more about CyTerra’s product at company Web site; read more about SafeView products at company Web site