Government relating to the Foreign CorruptPractices Act (FCPA), including Titan`s ability to maintain its export licensesas well as the outcome of other FCPA matters; ultimate resolution of contingentmatters, claims and investigations relating to acquired businesses, and theimpact on the final purchase price allocations; competitive pressure amongcompanies in our industry; and the fair values of our assets, which can beimpaired or reduced by other factors, some of which are discussed above. For a discussion of other risks and uncertainties that could impair our resultsof operations or financial condition, see “Part I – Item 1A – Risk Factors“and Note 18 to our audited consolidated financial statements, included in ourAnnual Report on Form 10-K for the year ended Dec 31, 2008. Our forward-looking statements are not guarantees of future performance and theactual results or developments may differ materially from the expectationsexpressed in the forward-looking statements. As for the forward-lookingstatements that relate to future financial results and other projections, actualresults will be different due to the inherent uncertainties of estimates,forecasts and projections and may be better or worse than projected and suchdifferences could be material.

Given these uncertainties, you should not placeany reliance on these forward-looking statements. These forward-lookingstatements also represent our estimates and assumptions only as of the date thatthey were made. We expressly disclaim a duty to provide updates to theseforward-looking statements, and the estimates and assumptions associated withthem, after the date of this release to reflect events or changes incircumstances or changes in expectations or the occurrence of anticipatedevents. (1) During the quarter ended March 27, 2009, the company adopted six newaccounting standards, three of which required retrospective application of theirprovisions.

These standards and their retrospective application are more fullydescribed in Tables F and G (Unaudited Supplemental Financial Data) attached tothis earnings release. (2) Sales from acquired businesses net of divestitures are comprised of (i)sales from business and product line acquisitions that are included in L-3`sactual results for less than 12 months, less (ii) sales from business andproduct line divestitures that are included in L-3`s actual results for the 12months prior to the divestitures. (3) See discussion, definition and calculation of free cash flow in Table Eattached to this earnings release Table A L-3 COMMUNICATIONS HOLDINGS, INC. The interim financial statements and tables of financial information included herein have been prepared and are labeled based on that convention TheCompany closes its annual books on Dec. 31, 20092008Period end dataFunded backlog $ 11,699$ 11,572Table C L-3 COMMUNICATIONS HOLDINGS, INC. UNAUDITED PRELIMINARY CONDENSED CONSOLIDATED BALANCE SHEETS (in millions)March 27, 2009 Dec.

UNAUDITED PRELIMINARY RECONCILIATION OF NET CASH FROM OPERATING ACTIVITIES TO FREE CASH FLOW(in millions)First Quarter EndedMarch 27,March 28,2009 2008 Net cash from operating activities$152$93 Less: Capital expenditures (41)(38) Add: Dispositions of property, plant and equipment 1 — Free cash flow(b) $112$55 (b) The company discloses free cash flow because the company believes that, subject to the limitations discussed below,it is one indicator of the cash flow generated that is available for investing activities and financing activities. Freecash flow is defined as net cash from operating activities less net capital expenditures (capital expenditures less cashproceeds from dispositions of property, plant and equipment). Free cash flow represents cash generated after paying forinterest on borrowings, income taxes, capital expenditures and changes in working capital, but before repaying principalamount of outstanding debt, paying cash dividends on common stock, share repurchases, investing cash to acquirebusinesses and making other strategic investments. Thus, key assumptions underlying free cash flow are that the companywill be able to supplementally finance its existing debt and that the company will be able to supplementally finance anynew business acquisitions it makes by raising new debt or equity capital. FSP APB 14-1 does not apply to the company`s other outstanding debt instruments because they are not convertible debt instruments within the scope of FSP APB 14-1.Table G L-3 COMMUNICATIONS HOLDINGS, INC.