Strengthening its RF Amplification Portfolio: Stellant Systems, Inc. Acquires Comtech's Power Systems Technology Product Line

Stellant Systems, Inc., a leading manufacturer of critical spectrum and RF power amplification systems, has announced its acquisition of Comtech Telecommunications Corp.'s Power Systems Technology (PST) product line. The definitive agreement, which includes a total cash purchase price of $40 million, will further enhance Stellant's portfolio of RF amplification products.

The acquisition of the PST product line brings a range of differentiated technologies in the solid-state power amplification market to Stellant. PST's strong reputation, talented workforce, and complementary customer base make it an ideal addition to Stellant's strategic vision of providing customers with best-in-class options across all amplification approaches, including vacuum tube and solid state.

Paul Russell, CEO of Stellant, expressed his enthusiasm about the partnership and the value that PST's products and technology will bring to Stellant's customers. He emphasized that this acquisition is a significant step forward in Stellant's strategic vision and a testament to the company's long history of technological innovations.

Peter Manos, Managing Partner at Arlington Capital Partners, the private equity firm backing Stellant, shared his views on the acquisition, stating that the combination of PST's market-leading frequency and power capabilities with Stellant's dominant position in the market will establish them as the technology leader.

Ken Peterman, President, and CEO of Comtech, highlighted the alignment of this decision with their long-term vision and expressed excitement about the growth opportunities that Stellant will provide for PST's product line and team. He also mentioned that the net proceeds from the transaction will be used to reduce debt, strengthen their balance sheet, and achieve their near-term strategic goals.

The transaction, subject to regulatory approvals and customary closing conditions, is expected to be completed by the end of October 2023.

About Stellant Systems, Inc.

Stellant Systems, Inc. is a premier manufacturer of critical spectrum and RF power amplification systems for various industries, including space, defense, medical, science, and industrial. With three domestic manufacturing facilities and nearly 1000 employees, Stellant serves both domestic and international customers, providing cutting-edge solutions. For more information, visit www.Stellantsystems.com.

About Comtech

Comtech Telecommunications Corp. is a leading global technology company offering terrestrial and wireless network solutions, next-generation 9-1-1 emergency services, satellite and space communications technologies, and cloud-native capabilities to commercial and government customers worldwide. With a focus on innovation and customer success, Comtech provides unique communication solutions through its global presence and technology leadership. For more information, please visit www.comtech.com.

About Arlington Capital Partners

Arlington Capital Partners is a Washington, DC-based private equity firm managing approximately $7 billion in capital commitments. They specialize in middle-market investment opportunities in growth industries, including government services and technology, aerospace & defense, healthcare, and business services and software. With a team of professionals possessing operating and private equity experience, Arlington aims to be a value-added investor by partnering with high-quality management teams. For more information, visit Arlington Capital's website at arlingtoncap.com.

Note About Forward-Looking Statements

This press release contains forward-looking statements that are based on current plans, estimates, expectations, and ambitions. These statements address matters that are uncertain and involve risks, such as the consummation of the proposed transaction and the anticipated benefits thereof. Actual results may differ materially from these forward-looking statements due to various factors, including the timely completion of the transaction and the realization of anticipated benefits. For a detailed discussion of the risk factors, please refer to Comtech's filings with the Securities and Exchange Commission. Stellant and Comtech do not intend to update or revise any forward-looking statements publicly, except as required by law.

In conclusion, the acquisition of Comtech's Power Systems Technology product line by Stellant Systems, Inc. represents a significant move that will strengthen Stellant's RF amplification portfolio. The partnership will bring together cutting-edge technologies, a talented workforce, and a broader customer base, further solidifying Stellant's position as a leader in the market. Both companies are optimistic about the potential for growth and innovation that this acquisition will unlock and are committed to achieving their long-term strategic goals.