Harris Corporation to Acquire Aastra Digital Video

Harris Corporation to Acquire Aastra Digital Video

Expands Video Networking Capabilities for Broadcasters and Broadens Total Content Delivery Solutions

MELBOURNE, Fla., May 23 /PRNewswire-FirstCall/ -- Harris Corporation (NYSE:HRS) has signed a definitive agreement to acquire Aastra Digital Video, a business unit of Aastra Technologies Limited . Aastra Digital Video develops and markets video networking, encoding, decoding, and multiplexing technologies used by television broadcasters, telecommunications providers and satellite networks. The heart of their product portfolio is the VideoRunner(TM) multi-service video networking system. They have been a supplier to Harris of video networking products for the past eight years, sold under the Flexicoder(TM) and NetVX(TM) brand names.

Aastra Digital Video is based in Bridgewater, NJ, with approximately 35 employees. Aastra's customers also include Turner Broadcasting, the National Football League, DIRECTV, Bell Canada, and the Canadian Televison Network (CTV). Revenue for the 12 months ended December 31, 2005, was approximately $18 million with EBITDA of $5.7 million, which does not include certain corporate allocations. Harris will acquire the assets of Aastra Digital Video for approximately $35 million in cash, subject to customary closing conditions, and the transaction is expected to be accretive to Harris fiscal year 2007 earnings per share, excluding acquisition-related charges.

"This acquisition adds to our Total Content Delivery solutions for the broadcast industry and will enable Harris to offer networking products that transport media content over a variety of broadcast, cable, satellite, and telco networks, including those supporting new services such as IPTV and Mobile TV," said Tim Thorsteinson, president of Harris Broadcast Communications Division. "Harris has had an excellent relationship with Aastra for many years, and we believe this acquisition will broaden our engineering resources to address rapidly emerging markets and new services that require expertise in areas such as the distribution and delivery of MPEG-2 and MPEG-4 program streams. This acquisition is a good technology match that creates significant value for our customers."

Harris is an international communications and information technology company serving government and commercial markets in more than 150 countries. With headquarters in Melbourne, Florida, the company has annual sales of over $3 billion and more than 13,000 employees -- including 5,500 engineers and scientists -- dedicated to the development of best-in-class assured communications(TM) products, systems, and services. The company's operating divisions serve markets for government communications, RF communications, broadcast communications, and microwave communications. Additional information about Harris Corporation is available at http://www.harris.com/ .

Forward-Looking Statement

Statements in this press release that are not historical facts are forward-looking statements that reflect management's current expectations, assumptions, and estimates of future performance and economic conditions. Such statements are made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements in this release include but are not limited to the timing and anticipated benefits to the Company related to the acquisition of Aastra Digital Video. The Company cautions investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements. The Company's consolidated results and the forward-looking statements could be affected by many factors, including but not limited to: our participation in markets that are often subject to uncertain economic conditions which makes it difficult to estimate growth in our markets and, as a result, future income and expenditures; our dependence on the U.S. government for a significant portion of our revenues, as the loss of this relationship or a shift in U.S. government funding could have adverse consequences on our future business; potential changes in U.S. government or customer priorities due to program reviews or revisions to strategic objectives, including termination of or potential failure to fund U.S. government contracts; risks inherent with large long-term fixed-price contracts, particularly the ability to contain cost overruns; the performance of critical subcontractors or suppliers; financial and government and regulatory risks relating to international sales and operations, including fluctuations in foreign currency exchange rates and the effectiveness of our currency hedging program; our ability to continue to develop new products that achieve market acceptance; the consequences of future geo-political events, which may affect adversely the markets in which we operate, our ability to insure against risks, our operations or our profitability; strategic acquisitions and the risks and uncertainties related thereto, including our ability to manage and integrate acquired businesses; potential claims that we are infringing the intellectual property rights of third parties; the successful resolution of patent infringement claims and the ultimate outcome of other contingencies, litigation and legal matters; customer credit risk; the fair values of our portfolio of passive investments, which values are subject to significant price volatility or erosion; risks inherent in developing new technologies; the potential impact of hurricanes on our operations in Florida and the potential impact of earthquakes on our operations in California; the ability to recruit and retain qualified personnel; and general economic conditions in the markets in which we operate. Further information relating to factors that may impact the Company's results and forward-looking statements are disclosed in the Company's filings with the SEC. Harris disclaims any intention or obligation, except as imposed by law, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Source: Harris Corporation

CONTACT: Pam Padgett, Harris Investor Relations, +1-321-727-9383, or
pamela.padgett@harris.com, or Brent Dietz, Harris Media Relations,
+1-321-724-3554, or brent.dietz@harris.com

Web site: http://www.harris.com/

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