News Release

Palomar Products begins ICS deliveries to Bombardier

June 2001 - Palomar Products has completed the development phase and has started delivering Secure Intercommunications Systems to Bombardier, in Montreal Quebec, for a military derivative of their Challenger 604 airplanes. The current contract covers four shipsets. Palomar Products management is pleased with the effort put in by the Palomar engineers, who took on a very short schedule and successfully delivered systems early. Palomar is convinced that once these aircraft become operational and the world's militaries see the capabilities of this version of the Challenger 604, Bombardier and Palomar Products will be working together again - supplying world class airborne systems.

Contact:
Palomar Products
Bob Lawson
Marketing Director
Voice (949) 766-5434
FAX (949) 766-5353
email: rlawson@palpro.com