Veritas Capital Sells Vertex Aerospace To L-3 Communications For $650 Million

New York, NY (October 22, 2003) – Veritas Capital, a leading private equity firm based in New York announced today it has reached a definitive agreement with L-3 Communications (NYSE: LLL) to sell Vertex Aerospace LLC for $650 million in cash. The acquisition is expected to be completed in December 2003.

Vertex is a leading provider of aerospace and other technical services to the Department of Defense (DoD) and other government agencies, including the U.S. Air Force, Navy, Army, Marine Corps, Department of Homeland Security (DHS), Drug Enforcement Administration and NASA.

Robert B. McKeon, Chairman of Veritas Capital stated: “Our investment in Vertex Aerospace and the agreement of its sale to L-3 are reflective of Veritas Capital’s investment strategy of partnering with quality companies to create value for our investors and partners. Since we acquired Vertex from Raytheon Company in 2001, we have grown sales and earnings at the company by 40% and 66%, respectively. In the last two months alone we have won over $3 billion in new business.”

“The management team of Vertex Aerospace, led by Dan Grafton, President & CEO, has done a tremendous job positioning the company for long-term growth and value creation as evidenced by recent important contract wins. We wish them continued success in the future,” McKeon said.

“The announced sale of Vertex is an important event for Veritas Capital and follows on our recently announced sale of Integrated Defense Technologies to DRS Technologies Inc.,” McKeon said. “These transactions will result in outstanding returns for our investors during a very difficult period in the financial markets. It is our goal to continue achieving these excellent results in the years ahead.”

The 7,000 employees of Vertex Aerospace oversee and manage more than 2,600 aircraft and other equipment at 325 locations worldwide, providing contract maintenance and training support for military, federal government and commercial customers.

Veritas Capital is a private equity investment firm headquartered in New York. Founded in 1992, Veritas invests in a broad range of companies through middle market buyouts, growth capital investments, and leveraged recapitalizations. Through its investment funds, Veritas manages equity capital committed from leading financial institutions, state pension funds, insurance companies and high net worth individuals and families.

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