Aeroflex Incorporated Completes Purchase of UTMC Microelectronic Systems Inc. Will Take Estimated One-time Research

PLAINVIEW, N.Y. (Feb. 25) BUSINESS WIRE -February 25, 1999--Aeroflex Incorporated (NYSE Symbol: ARX) today announced that its purchase of UTMC Microelectronic Systems, Inc. (UTMC) and an approximately $47,000, 000 credit facility with Fleet Bank, N.A. and The Chase Manhattan Bank have been consummated.

Michael Gorin, President, stated, "As a leading supplier of radiation-tolerant integrated circuits for satellite communications, UTMC's Commercial RadHard(TM) products, services and foundry partners are expected to complement Aeroflex' line of microelectronic module and interconnect products for the communications marketplace. The addition of UTMC to our microelectronics business segment is expected to be an important building block in our strategy to provide more content in communications platforms, primarily in the satellite communication area. Utilizing UTMC's intellectual property, we will be able to offer our customers silicon based integrated circuits in addition to the microelectronic modules and interconnects we are presently supplying. In addition, UTMC's technical expertise, as well as their facilities in Colorado Springs, should offer Aeroflex flexibility and synergy in our future design, manufacturing and assembly requirements."

Mr. Gorin also said, "The acquisition of UTMC will be recorded using the purchase method of accounting. In this connection, Aeroflex has commissioned an independent asset valuation study to allocate the purchase price among the various tangible and intangible assets of UTMC, including purchased in-process research and development. The amount of purchased in-process research and development will be recorded as a one-time charge to earnings in the March 31, 1999 quarter. The preliminary results of the asset valuation study, which are subject to finalization, indicate a range for this one-time charge of $3 million to $4 million ($.16 to $.21 per diluted share)."

A conference call to discuss the business of UTMC will be held sometime during the week of March 1st. A conference call advisory will be sent out when the time and date have been set.

Aeroflex Incorporated, through its subsidiaries, utilizes advanced technologies to provide state-of-the-art microelectronic module, interconnect and testing solutions used in communication applications for commercial and defense markets. It also designs and manufactures motion control systems and shock and vibration isolation systems used for commercial, industrial and defense applications. Except for historical information contained in this news release, the matters discussed are forward looking statements that involve risks and uncertainties. Among the factors that could cause actual results to differ materially are the following: the effect of business and economic conditions; the impact of competitive products and pricing; capacity and supply constraints or difficulties; product development, commercialization or technological difficulties; the regulatory and trade environment; the ability of the Company to integrate the production facilities of the company acquired; and the risk factors reported from time to time in the Company's SEC reports.

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CONTACT: Aeroflex Incorporated, Plainview

           Michael Gorin - President and Chief Financial Officer 

(516) 694-6700

KEYWORD: NEW YORK
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS AEROSPACE/DEFENSE
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