Veritas Capital Establishes Defense and Aerospace Advisory Council

New York, New York, September 6, 2001: Veritas Capital, a leading investor in defense and aerospace companies, has established a Defense and Aerospace Advisory Council to assist the firm in managing current investments in these industries. Founded in 1992, Veritas is a private equity firm that invests in companies through middle market buyouts, growth capital investments, and leveraged recapitalizations with a particular focus in the defense and aerospace sector. Veritas recently completed the acquisition of Raytheon Aerospace Company, a leading provider of aviation and aerospace technical services with sales of approximately $500 million.

Joining the Council are: Admiral Joseph W. Prueher (USN Ret.), former Commander-in Chief, Pacific Forces and former Ambassador to China; Admiral Leighton W. “Snuffy” Smith, Jr. (USN Ret.) former Commander-in-Chief, Allied Forces Southern Europe; General Barry R. McCaffrey (USA Ret.), former Commander-in-Chief of the U.S. Southern Command and Director of the White House Office of National Drug Control Policy; General Richard E. Hawley (USAF Ret.), former Commander of U.S. Air Forces Europe/Allied Forces Central Europe and Commander, Air Combat Command; and General Anthony C. Zinni (USMC Ret.), former Commander-in-Chief, U.S. Central Command.

“During the past five years, a growing number of our acquisitions have been in the defense and aerospace sector,” said Robert B. McKeon, president of Veritas. “These have been exceptional investments for us and we want to continue to invest heavily in aerospace and defense companies. With that in mind, we wanted to establish a group of experts to advise us in the oversight of our portfolio companies and assist in our due diligence of potential acquisitions. We are extremely pleased that such a distinguished group of individuals has agreed to join us. The reputations and expertise they bring will further differentiate us as investors in the sector and will create enormous value for our shareholders.”

"Navigating successful defense sector investment, for both the country and the shareholder, requires integrity, savvy, and agility, all encompassed within a long haul perspective,” said Admiral Joseph W. Prueher. “Veritas has demonstrated capability for each of these aspects. Each of us looks forward to participating on the Advisory Team."

Admiral Leighton W. Smith said, “Veritas has an excellent reputation in the industry. Their companies have strong management teams and are highly regarded by their customers. I am pleased to be a part of the organization and look forward to pursuing additional acquisitions as well as growth opportunities for existing portfolio companies.”

“Investing in defense and aerospace companies is different from most sectors,” said General Barry R. McCaffrey. “They are essential to our national security and operate under more stringent performance criteria and oversight. It takes an experienced team to maintain a strong reputation with their customer base and at the same time create shareholder value. Veritas has proven they know how to do both.”

“Veritas strengthens America's defense industry and our armed forces by adding vitality and value to the companies in their portfolio,” said General Richard E. Hawley. “I look forward to helping the company extend its well-established record of success.”

"I am pleased to join Veritas and the exceptional team on the Advisory Council,” said General Anthony C. Zinni. “This excellent organization has benefited the defense industry and our nation’s security. I look forward to being part of the continued high performance and exciting direction Veritas has established.”

Acquisitions by Veritas include PEI Electronics, Inc., Sierra Research, Zeta Technologies, Metric Systems, Enterprise Electronics, Continental Electronics, Excalibur Systems Ltd., Trak Communications, Inc., Baltimore Marine Industries, Inc., Tech-Sym Corporation and Worthington Precision Metals, Inc. Veritas most recently completed the acquisition of Raytheon Aerospace, a subsidiary of Raytheon Aircraft Company. With over 5,300 employees and sales of approximately $500 million, Raytheon Aerospace is a leading provider of aviation and aerospace technical services including logistics management, aircraft maintenance, and inventory management. Under the terms of the agreement, Raytheon Company will continue to maintain a minority interest in the company. Members of the Advisory Council will join the board representing Veritas.

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