News Release

P-3 Improvement Programs Extend Life of Special Mission Aircraft

June, 1997 - With the expectation of a follow-on order later this year by the US Customs Service for an additional P-3AEW Drug Interdiction Aircraft, Palomar Products' Military Switch Division continues its strong showing in the P-3 Intercommunications Systems (ICS) market. We delivered four such systems with aircraft Number 5 expected to be ordered in 1997 and Number 6 in late 1998. This activity closely follows the recent orders that we have had in the P-3 community, mainly the AP-3C from the Royal Australian Air Force (RAAF) through Raytheon E-Systems for several shipsets, and the very unique NP-3D aircraft. Both of these programs are proceeding very well with deliveries expected soon. The Australian Program has been so successful that the RAAF has decided to join forces with Raytheon E-Systems to market the intercommunications upgrade to other P-3 owners throughout the world.

Other P-3 improvement programs are anticipated within the next few years as nations try to extend the life of these very valuable maritime patrol assets. When asked about Palomar Products' ability to perform in this market of special mission aircraft, Ed Bender, Director of Sales said, "We are extremely pleased in our ability to quickly and effectively develop these systems. They have all met the customer's specification without any cost overruns. We look forward to continuing as a provider of such systems for a wide variety of aircraft for many years to come."

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