Comtech Telecommunications Corp. Announces Record Results for the First Quarter of Fiscal 2006

Net sales for the first quarter of fiscal 2006 surpassed the$100.0 million mark for the first time in the Company's history to$106.6 million, compared to $56.1 million in the first quarter offiscal 2005. GAAP net income in the first quarter of fiscal 2006 was$11.5 million, or $0.43 per diluted share, a significant increase overthe first quarter of fiscal 2005 net income of $7.1 million, or $0.28per diluted share.

GAAP net income in the first quarter of fiscal 2006 included $1.3million of pre-tax compensation expense related to the adoption ofStatement of Financial Accounting Standards No. 123(R) which requiresthe expensing of stock option awards. Excluding stock-basedcompensation expense, diluted earnings per share for the first quarterof fiscal 2006 were $0.47.

Earnings before interest, income taxes, depreciation andamortization (including the amortization of stock-based compensation),or EBITDA, were $20.1 million for the first quarter of fiscal 2006versus $12.2 million for the same period in fiscal 2005. Cash flowfrom operating activities for the first quarter of fiscal 2006 was$7.2 million compared to $20.3 million for the first quarter of fiscal2005, reflecting an increase in accounts receivable on certain largecontracts during the fiscal 2006 period and the liquidation of asignificant receivable in the fiscal 2005 period.

Backlog as of October 31, 2005 was $156.8 million compared to$153.3 million at July 31, 2005. Bookings for the first quarter offiscal 2006 were $110.1 million.

In commenting on the Company's record performance during the firstquarter of fiscal 2006, Fred Kornberg, President and Chief ExecutiveOfficer of Comtech Telecommunications Corp., said, "The first quarterof fiscal 2006 was yet another remarkable quarter for Comtech.Achieving in excess of $100.0 million of sales in a quarter, when ourannual sales just a few short years ago were less than $120.0 million,is tangible evidence of the strong leadership positions we enjoy inthe markets we serve, and the dedication and talent of our managementteam and employees."

Mr. Kornberg added, "As expected, the first quarter of fiscal 2006benefited from strong backlog and pent-up demand, particularlyrelating to the MTS contract in our mobile data communications segmentand the improvised explosive device jamming contract in our RFmicrowave amplifier segment. As I've mentioned many times before, ourquarterly sales and earnings can fluctuate dramatically fromquarter-to-quarter, based on the timing of the receipt, and subsequentperformance, on large contracts."

Mr. Kornberg concluded, "We remain optimistic about our businessesand continue to believe that fiscal 2006 is well-positioned to beanother record year for Comtech."

Comtech Telecommunications Corp. designs, develops, produces andmarkets innovative products, systems and services for advancedcommunications solutions addressing commercial and government markets.The Company conducts its business through three complementarysegments: telecommunications transmission, mobile data communicationsand RF microwave amplifiers. The Company offers specialized products,systems and services where it believes it has technological,engineering, systems design or other expertise that differentiate itsproduct offerings.

The Company has scheduled an investor conference call for 11:30 AM(ET) on Tuesday, December 6, 2005. Investors and the public areinvited to access a live webcast of the conference call from the newssection of the Comtech web site at www.comtechtel.com. A replay of thewebcast will be available at the same location for 30 days followingthe conference call. Alternatively, investors can access theconference call by dialing (877) 210-6102 (domestic), or (785)830-1921 (international) and using the conference I.D. of "Comtech." Areplay of the conference call will be available for seven days bydialing (402) 220-2982. In addition, an updated investor presentation,including earnings guidance, will be available on our web site shortlyafter the conference call.

Certain information in this press release contains forward-lookingstatements, including but not limited to, information relating to thefuture performance and financial condition of the Company, the plansand objectives of the Company's management and the Company'sassumptions regarding such performance and plans that areforward-looking in nature and involve certain significant risks anduncertainties. Actual results could differ materially from suchforward-looking information. The Company's Securities and ExchangeCommission filings identify many such risks and uncertainties, whichinclude the following:

-- Our operating results being difficult to forecast and subject to volatility;

-- Our inability to maintain our government business;

-- Our inability to keep pace with technological changes;

-- Our dependence on international sales;

-- The impact of a domestic or foreign economic slow-down and reduction in telecommunications equipment and systems spending on the demand for our products, systems and services;

-- Our mobile data communications business being subject to unique risks;

-- Our backlog being subject to cancellation or modification;

-- Our dependence on component availability, subcontractor availability and performance by key suppliers;

-- Our fixed price contracts being subject to risk;

-- The impact of adverse regulatory changes on our ability to sell products, systems and services;

-- The impact of prevailing economic and political conditions on our businesses;

-- Whether we can successfully integrate and assimilate the operations of acquired businesses;

-- The impact of the loss of key technical or management personnel;

-- The highly competitive nature of our markets;

-- Our inability to protect our proprietary technology;

-- Our operations being subject to environmental regulation;

-- The impact of recently enacted and proposed changes in securities laws and regulations on our costs;

-- The impact of ongoing internal control provisions of Section 404 of the Sarbanes-Oxley Act of 2002;

-- The impact of terrorist attacks and threats, and government responses thereto, and threats of war on our businesses;

-- The inability to effectuate a change in control of the Company due to provisions in its certificate of incorporation and by-laws, stockholders' rights plan and Delaware law;

-- Our inability to satisfy our debt obligations, including the convertible senior notes;

-- The impact on our reported results of recent changes to financial reporting standards related to stock option expensing;

-- Our stock price being volatile; and

-- Our current intention not to declare or pay any cash dividends.

COMTECH TELECOMMUNICATIONS CORP.
Consolidated Statements of Operations
(Unaudited)


Three months ended
October 31,
-------------------------
2005 2004
------------ -----------

Net sales $106,567,000 56,122,000
Cost of sales 66,363,000 29,001,000
------------- -----------
Gross profit 40,204,000 27,121,000
------------- -----------

Expenses:
Selling, general and administrative 16,048,000 11,224,000
Research and development 6,749,000 4,896,000
Amortization of intangibles 596,000 569,000
------------- -----------
23,393,000 16,689,000
------------- -----------

Operating income 16,811,000 10,432,000

Other expense (income):
Interest expense 674,000 669,000
Interest income (1,775,000) (643,000)
------------- -----------

Income before provision for income taxes 17,912,000 10,406,000
Provision for income taxes 6,448,000 3,330,000
------------- -----------
Net income $ 11,464,000 7,076,000
============= ===========

Net income per share:
Basic $ 0.51 0.33
============= ===========
Diluted $ 0.43 0.28
============= ===========

Weighted average number of common shares
outstanding - basic 22,646,000 21,363,000
============= ===========

Weighted average number of common and common
equivalent shares outstanding assuming
dilution - diluted 27,379,000 26,460,000
============= ===========


Reconciliations of Non-GAAP Financial Measures to
GAAP Financial Measures
--------------------------------------------------

Three months ended
October 31,
-----------------------
2005 2004
------------ ----------
Reconciliation of Non-GAAP Net Income,
Excluding Stock-based Compensation Expense,
To GAAP Net Income(1):
Non-GAAP net income, excluding stock-based
compensation expense $12,486,000 7,076,000
Pre-tax stock-based compensation expense (1,296,000) -
Tax effect of stock-based compensation
expense 274,000 -
------------ ----------
GAAP net income $11,464,000 7,076,000
============ ==========


Reconciliation of Non-GAAP Diluted Earnings
Per Share, Excluding Stock-based
Compensation Expense, To GAAP Diluted Earnings
Per Share(1):
Non-GAAP diluted earnings per share,
excluding stock-based compensation $ 0.47 0.28
Pre-tax stock-based compensation expense (0.05) -
Tax effect of stock-based
compensation expense 0.01 -
------------ ----------
GAAP diluted earnings per share $ 0.43 0.28
============ ==========

Reconciliation of GAAP Net Income to EBITDA(2):
GAAP net income $11,464,000 7,076,000
Income taxes 6,448,000 3,330,000
Net interest expense (income) (1,101,000) 26,000
Stock-based compensation expense 1,296,000 -
Depreciation and amortization 1,967,000 1,814,000
----------- ----------
EBITDA $20,074,000 12,246,000
=========== ===========

(1) Non-GAAP net income is used by management in assessing the
Company's operating results. The Company believes that investors and
analysts may use non-GAAP measures that exclude stock-based
compensation, along with other information contained in its SEC
filings, in assessing the Company's operating results.

(2) Represents earnings before interest, income taxes, depreciation
and amortization (including the amortization of stock-based
compensation). EBITDA is a non-GAAP operating metric used by
management in assessing the Company's operating results and ability to
meet debt service requirements. The Company's definition of EBITDA may
differ from the definition of EBITDA used by other companies and may
not be comparable to similarly titled measures by other companies.
EBITDA is also a measure frequently requested by the Company's
investors and analysts. The Company believes that investors and
analysts may use EBITDA, along with other information contained in its
SEC filings, in assessing its ability to generate cash flow and
service debt.


COMTECH TELECOMMUNICATIONS CORP.
Consolidated Balance Sheets

October 31, July 31,
2005 2005
------------ ------------
Assets (Unaudited)
Current assets:
Cash and cash equivalents $220,043,000 214,413,000
Restricted cash 1,003,000 1,034,000
Accounts receivable, net 69,531,000 56,052,000
Inventories, net 49,343,000 45,103,000
Prepaid expenses and other current assets 5,032,000 4,387,000
Deferred tax asset - current 8,092,000 8,092,000
------------ ------------
Total current assets 353,044,000 329,081,000

Property, plant and equipment, net 20,220,000 18,683,000
Goodwill 22,244,000 22,244,000
Intangibles with definite lives, net 8,640,000 9,123,000
Deferred financing costs, net 2,858,000 2,995,000
Other assets, net 279,000 277,000
------------ ------------
Total assets $407,285,000 382,403,000
============ ============

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 28,792,000 23,577,000
Accrued expenses and other current
liabilities 32,178,000 34,497,000
Customer advances and deposits 6,090,000 5,282,000
Deferred service revenue 9,878,000 8,210,000
Current installments of other obligations 226,000 235,000
Interest payable 525,000 1,050,000
Income taxes payable 7,636,000 1,540,000
------------ ------------
Total current liabilities 85,325,000 74,391,000

Convertible senior notes 105,000,000 105,000,000
Other obligations, less current installments 348,000 396,000
Deferred tax liability - non-current 5,653,000 5,987,000
------------ ------------
Total liabilities 196,326,000 185,774,000

Commitments and contingencies

Stockholders' equity:
Preferred stock, par value $.10 per share;
shares authorized and unissued 2,000,000 - -
Common stock, par value $.10 per share;
authorized 30,000,000 shares, issued
22,919,422 shares and 22,781,678 shares
at October 31, 2005 and July 31, 2005,
respectively 2,292,000 2,278,000
Additional paid-in capital 130,022,000 127,170,000
Retained earnings 78,830,000 67,366,000
------------ ------------
211,144,000 196,814,000
Less:
Treasury stock (210,937 shares) (185,000) (185,000)
------------ ------------
Total stockholders' equity 210,959,000 196,629,000
------------ ------------
Total liabilities and
stockholders' equity $407,285,000 382,403,000
============ ============

ECMTL