1. What’s New High-Performance Defending
Training
Transformational
in Avionics Products Our Shores
Our Troops
ISR
L-3 Communications
summary Annu al Report 2003
On Course
Military Transformation and
Homeland Security –
How L-3 is Positioning Itself
for the Future

2. FINANCIAL HIGHLIGHT S
For the years ended December 31, 2003 2002 2001 2000 1999
(In thousands, except per share amounts)
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . $5,061,594 $4,011,229 $2,347,422 $1,910,061 $1,405,462
Operating income(a) . . . . . . . . . . . . . . . . . 581,021 453,979 275,330 222,718 150,486
Income before cumulative effect of a change
in accounting principle(a) . . . . . . . . . . . . 277,640(d) 202,467(d) (e)
. 115,458 82,727 58,689
Diluted earnings per share before
cumulative effect of a change
in accounting principle(a) (b) . . . . . . . . . . . 2.71(d) 2.18(d) (e)
. 1.47 1.18 0.88
Cash flow from operating activities . . . . . . . 456,063 318,460 172,968 113,805 99,018
Capital expenditures, net of disposition
of property, plant and equipment . . . . . . . . 79,020 58,510 46,884 15,520 16,743
Free cash flow(c) . . . . . . . . . . . . . . . . . . . 377,043 259,950 126,084 98,285 82,275
Shareholders’ equity . . . . . . . . . . . . . . . . 2,574,496 2,202,202 1,213,892 692,569 583,175
(a) The statement of operations data for 2001, 2000 and 1999 includes goodwill amortization expense.
(b) Diluted earnings per share for all periods reflects our two-for-one stock split that became effective May 20, 2002.
(c) We define free cash flow as net cash from operating activities, less net capital expenditures (capital expenditures less cash proceeds from disposition of property,
plant and equipment).
(d) Includes debt retirement charge of $7.2 million after taxes, or $0.06 per diluted share in 2003 and $9.9 million after taxes, or $0.11 per diluted share in 2002.
(e) The year ended December 31, 2002 excludes the cumulative effect of a change in accounting principle for a goodwill impairment of $24.4 million or $0.25 per diluted share.
Operating Income in millions Free Cash Flow in millions
Sales in millions
$600
$6,000 $400
480
4,800 320
%
%
%
.2
.8
.4
40
37
46
360
3,600 240
GR
GR
GR
CA
CA
CA
240
2,400 160
120
1,200 80
99 00 01 02 03 99 00 01 02 03 99 00 01 02 03
MILESTONES
May 2003 September 2003 October 2003
March 2003
L-3 sold $400.0 million of 6 1/8% Senior L-3 acquired Klein Associates, Inc., a busi- L-3 successfully completed the acquisition
L-3 acquired the Avionics Systems business
Subordinated Notes. The company used a ness unit of OYO Corporation of Japan. of the Military Aviation Services (MAS)
from Goodrich Corporation. Avionics
portion of the proceeds to redeem its Klein is a pioneer in the development of business of Bombardier Inc. MAS is a
Systems is a leading designer and manu-
$180.0 million of 8 1/2% Senior side-scan sonars, sub-bottom profilers and leader in systems engineering support and
facturer of advanced cockpit equipment,
Subordinated Notes. related instruments and accessories for aircraft modernization, providing a full
innovative avionics solutions and safety
undersea search and survey. range of technical services in the areas of
systems.
May 2003 aircraft maintenance, repair and upgrade
L-3 completed its acquisition of Aeromet, for military aircraft and regional jets and
Inc., a leader in electro-optical and selected commercial aircraft.
infrared (EO/IR) programs supporting
Intelligence, Surveillance and
Reconnaissance (ISR) missions and spe-
cialized meteorological applications.

3. L-3 Communications 2003 Summary Annual Report
Contents
3 Letter to Shareholders
2003 shaped up to be an excellent year for L-3.
Contributors: Frank C. Lanza and Robert V LaPenta.
.
Secure Communications & ISR
6 ISR is at the forefront of military transformation.
Contributors include: Communication Systems-East, Communication Systems-West,
Integrated Systems, Aeromet & ComCept.
Training, Simulation & Support
10 Readiness and cost-effectiveness are driving a push for more training, simulation
and support services.
Contributors include: Link Simulation and Training, GSI, MPRI, MPRI-Ship Analytics,
SYColeman & ILEX.
Aviation Products & Aircraft Modernization
14 Key products and strategic acquisitions make L-3 a world player in this arena.
Contributors include: Aviation Recorders, Avionics Systems, ACSS, Display Systems,
Electrodynamics, Integrated Systems, Vertex Aerospace, MAS & Spar Aerospace.
Specialized Products
18 With the broadest base of products in defense, L-3 added key products to its arsenal in 2003.
Contributors include: IEC, KDI, BT Fuze Products, Space and Navigation, SPD Technologies,
Ocean Systems, ESSCO, Narda Microwave-East, Narda Microwave-West, Narda Satellite Networks,
Security and Detection Systems, Telemetry-East, Telemetry-West, Storm Control Systems,
Ruggedized Command and Control Solutions, Randtron, WESCAM, Electron Devices & Wolf Coach.
Homeland Security
22 The threat of terrorism has not abated and the US government is working on protecting
the nation’s citizens and infrastructure.
Contributors include: Security and Detection Systems, Communication Systems-East,
Communication Systems-West, Aviation Recorders, GSI, MPRI, MPRI-Ship Analytics & Wolf Coach.
Shareholder Information
26
Condensed Consolidated Financial Data and Management Team
28
December 2003 January 2004
December 2003
December 2003
L-3 successfully completed its acquisition L-3’s Board of Directors declared the com-
L-3 acquired certain defense and aero-
L-3 sold $400.0 million of 6 1/8% Senior
of Vertex Aerospace LLC. Vertex is a lead- pany’s first quarterly cash dividend of
space assets of IPICOM, Inc. This busi-
Subordinated Notes. The company initiat-
ing provider of aerospace and other tech- $0.10 per share, payable March 15, 2004,
ness is a leading manufacturer of broad-
ed the redemption of $300.0 million of
nical services to the Department of to shareholders of record at the close of
band communications products and sys-
5 1/4% Convertible Senior Subordinated
Defense (DoD) and other government business on February 17, 2004.
tems, including advanced performance
Notes, which resulted in the conversion of
agencies, including the US Air Force, US analog, digital and fiber-optic transmission
substantially all the 5 1/4% Notes into L-3
Navy, US Army, US Marine Corps, systems widely used in broadband, cable
common stock in January, 2004.
Department of Homeland Security (DHS), TV, security and surveillance applications.
Drug Enforcement Administration (DEA)
and NASA.

4. Robert V. LaPenta Frank C. Lanza
The
President and Chairman and
Chief Financial Officer Chief Executive Officer

5. Dear Shareholders:
n 2003, our military forces were
I engaged in a fierce conflict in Iraq,
while in the US, federal, state and local
authorities were continuing their work
to secure the nation against terrorist
threats. L-3 Communications – its
employees, products and services –
played a major role in sustaining and
equipping our troops, as well as helping
domestic agencies and local govern-
ments meet the difficult challenges they
faced after September 11, 2001.
L-3 is proud of its support of the
successful missions of the Special
Operations Forces (SOF), whose role
has been greatly expanded in both Iraq
and Afghanistan. One of the key advan-
tages the US military had in detecting
and eliminating the enemy was
its Intelligence, Surveillance and
Reconnaissance (ISR) capability, as
well as secure data links and systems
provided by L-3 for all important
manned intelligence aircraft and
Unmanned Aerial Vehicles (UAV).
The challenging demands of
ongoing operations increased the need
for highly trained military personnel,
and L-3’s training, simulation and sup-
port services dramatically helped to
improve combat skills and readiness for
our forces. These demands also called
for increased aircraft maintenance, sys-
tems integration and system upgrades
by L-3 to ensure that the military’s exist-
ing assets performed at their best.
L-3’s work in ISR and secure
communications, as well as precision
weaponry products, global positioning
equipment and safety and arming
devices, enabled precise targeting of
enemy assets with minimal collateral
damage. There were thousands of L-3
personnel assisting our military forces
and hundreds of L-3 products in use,
including displays, antennas, satellite
Future for L-3
3

6. communications terminals, command $4,011.2 million in 2002, a 26.2% L-3 closed the year 2003 with a
and control systems, microwave subsys- increase, including 15.4% organic strong balance sheet. The company’s
tems for radars, precision weapons and growth for L-3's defense business (5.4% debt to book capitalization was at 48.1%
guidance systems, telemetry products for all of L-3 including the declines in at December 31, 2003 (42.3% after
and electronic wide-area remote securi- L-3's explosives detection systems and adjusting for the conversion of $300.0
ty sensors. commercial businesses). million of 5 1/4% Convertible Notes into
In the area of homeland security, For 2003, operating income rose common stock in January 2004), com-
L-3’s eXaminer® 3DX 6000s are hard at 28.0% to $581.0 million, increasing pared to 44.8% at December 31, 2002.
work at American airports inspecting from $454.0 million in 2002. Diluted
Acquisitions
checked baggage; the company’s cargo earnings per share for 2003 rose 24.3%
inspection systems are also in operation to $2.71, from $2.18 (before cumulative uring 2003, L-3 made a number of
D
around the world protecting ports and effect of a change in accounting princi- key acquisitions with an aggregate
facilities. L-3’s intrusion detection sys- ple) in 2002. purchase price of $1.0 billion. These
tems are guarding US borders and US In May 2003, L-3 completed an companies complemented L-3’s existing
military bases around the world. L-3’s offering of $400.0 million principal operations in three of its four business
crisis management systems are helping amount of 6 1/8% Senior Subordinated segments and allowed L-3 to take advan-
New York City’s anti-terrorism unit, as Notes and redeemed all outstanding tage of synergies and offer more prod-
well as other state and local authorities, $180.0 million aggregate principal ucts, services and added value to cus-
defend against threats. amount of 8 1/2% Senior Subordinated tomers.
In many ways, L-3 has become a Notes. Later that year, L-3 raised $400.0 In Secure Communications and
major partner in US efforts to protect million in funds through a private place- ISR, L-3 added two important compa-
and equip its military and its homeland ment of Senior Subordinated Notes and nies. Aeromet offers a broad array of
security authorities. This partnership called for redemption of all its outstand- services, including electro-optical and
has grown substantially from the compa- ing $300.0 million aggregate principal infrared (EO/IR) programs for ISR and
ny’s beginnings. amount of 5 1/4% Convertible Senior specialized meteorological applications
In 1997, L-3 had revenues of Subordinated Notes due 2009, substan- for key mission areas. The defense and
$705.4 million and was a product sup- tially all of which were converted into aerospace assets purchased from
plier of secure communications, avion- L-3 common stock in January 2004. IPICOM have leadership positions in
ics, telemetry and instrumentation and The net proceeds were used to repay secure optical data link systems for
microwave products. Through internal indebtedness outstanding under our sen- defense and aerospace applications for a
growth and acquisition, L-3 is now a ior credit facilities and for general cor- variety of classified and unclassified
Fortune 500 company, with over $5 bil- porate purposes, including acquisitions. customers.
lion in revenues in 2003. The company L-3 generated $377.0 million in L-3 significantly expanded its
has evolved into a prime systems con- free cash flow, compared to $260.0 mil- position in its Aviation Products and
tractor for secure communications and lion in 2002, an increase of 45.0%. L-3 Aircraft Modernization segment with
ISR, training and simulation, govern- ended the year with $134.9 million cash key acquisitions. In commercial avia-
ment services and aircraft moderniza- on hand and $665.9 million of available tion products, L-3 acquired Goodrich
tion and has become the largest and borrowings under the company’s bank Avionics Systems (renamed L-3
broadest supplier of products for the credit facilities. These funds are avail- Avionics Systems), which supplies a
merchant market in the defense industry. able for investments in strategic acquisi- variety of safety-related avionics prod-
ucts, including the new SmartDeck®
tions and other business opportunities.
Strong Results It was a banner year for orders at integrated flight control and display sys-
n 2003, L-3 again demonstrated its
I L-3. The company recorded $5,477.4 tem for the general aviation market.
commitment to high-performance million in funded orders from all of Avionics Systems also offers products
standards, setting financial records and L-3’s major business areas. Backlog for military platforms, such as the Joint
establishing new milestones. Sales was $3,893.3 million at December 31, Primary Aircraft Training System
increased to $5,061.6 million from 2003. (JPATS). Despite the slowdown in the
overall commercial aviation sector,
L-3 Accolades
ComCept received the Outstanding
Communication Systems-East’s ComCept was awarded a James S. Link Simulation and Training’s
Achievement award from the Defense
Improved Remotely Monitored Cogswell Outstanding Industrial founder, Ed Link, developer of the first
Industry in network-centric warfare
Battlefield Sensor System (IREM- Security Achievement Award for 2003. pilot training device in 1929, was
from the Institute for Defense and
BASS) has been awarded Government The Defense Security Service estab- inducted into the National Inventors
Government Advancement (IDGA).
Executive Magazine's 2002 Grace lished this award in 1996 as a way to Hall of Fame (NIHF) in Akron, Ohio.
ComCept was selected by a distin-
Hopper Government Technology recognize a few of the cleared contrac-
Link received the 2003 Market Leader-
guished panel of experts over a field of
Leadership Award in the category of tor facilities for outstanding perform-
ship Award in Military Flight Simula-
strong competitors for its work on the
quot;Contributing to Advances in ance in the field of security.
tion from Frost & Sullivan, a global
Network-Centric Collaborative
Homeland Security and the War on
consulting and market research organi-
Targeting (NCCT) program with the
Terrorism.quot;
zation.
US Air Force's Big Safari Program
Office.
4

7. mation of the military, the US defense
Avionics Systems, with its balanced airport, port and maritime security,
budget will continue to be strong well
business mix of military, business and intrusion detection, crisis management
into the future. In an election year and
general aviation and air transport prod- and vehicles for communications,
with troops overseas, we believe
ucts, continues to demonstrate solid bioterrorism and command and control.
Congress and the American people will
growth. The opportunities for internal
continue to support the DoD's require-
With joint-venture partner Vertex growth are significant in the years
ments, as well as future transformation.
Aerospace, L-3 won a major ten-year ahead, as is the pipeline for acquisitions.
In 2006, the president will have
contract to provide logistics support for Throughout its history, L-3 has been
the opportunity to reexamine DoD
US Army aircraft training at Fort very selective in choosing companies
requirements, make decisions on the
Rucker, Alabama. This successful part- with products and systems in high-
modernization of existing platforms and
nership led L-3 to its largest acquisition growth areas of defense spending. In
determine the survival of new plat-
of 2003 – Vertex Aerospace, a leading 2004 and beyond, this combination of
forms. Readiness will continue to be a
provider of logistics support, modern- focused internal growth and opportunis-
mandatory funding commitment as well
ization, maintenance, supply chain man- tic acquisitions will help to deliver dou-
as spiral modernization of current
agement and depot services with a ble-digit growth rates and enable L-3 to
weapons and platforms, regardless of
worldwide presence. become even more critical to the US
strategic direction.
L-3 further solidified its position military, as well as federal, state and
L-3 is in a position of strength in
as a leader in aircraft modernization local homeland security initiatives.
either a growing or flat defense budget
with the acquisition of Bombardier’s None of this growth would be pos-
environment. We are teamed on major
Military Aviation Services (MAS). This sible without the effort, dedication and
new start programs in a growth market
operation adds to L-3’s other Canadian skill of our L-3 workforce. Year after
and we are strongly positioned on legacy
aircraft modernization company – Spar year, they have delivered on their prom-
programs in a flat market. L-3’s products
Aerospace – and provides systems engi- ise to provide excellent value to our cus-
and services are in the higher growth
neering support, aircraft modernization tomers and growth to our shareholders
areas of procurement – ISR, UAVs, pre-
and a full range of technical services. and they will continue that commitment
cision weapons, training and simulation
With L-3’s Integrated Systems opera- in 2004.
systems and networked secure communi-
tions and its new subsidiary Vertex, Reflecting our confidence in L-3's
cations.
along with Spar and MAS, L-3 is now future growth, the L-3 Board of
In addition, L-3’s sizeable pres-
one of the largest aircraft modernization Directors declared L-3’s first quarterly
ence in aircraft modernization will
companies in the world. cash dividend to the company's common
enable the company to take advantage of
In the Specialized Products seg- stock holders payable on March 15,
growth in the Operations and
ment, L-3 added Klein Associates, a 2004. This year’s annual report will
Maintenance segment of the defense
leading sensor technology company, examine how the company is on course
budget. Upgrading legacy platforms is
which provides high-resolution sonar for the future with promising technolo-
one of the DoD’s priorities, not only to
systems, marine navigation systems and gies, new programs and future growth
ensure military readiness, but to provide
intrusion detection systems. Klein mar- opportunities.
an affordable alternative to purchasing
kets to US and international government
larger quantities of expensive new plat-
and military organizations and offshore
forms.
oil companies, among others. Klein’s
The Department of Homeland
products were utilized as the principal
Frank C. Lanza
Security (DHS) budget in 2004 will be
sonar sensors in the search for the
Chairman and Chief
over $36 billion, 7% more than 2003
Titanic, Space Shuttle Challenger,
Executive Officer
levels. The focus of its spending will be
Space Shuttle Columbia and TWA
on securing borders, air transportation
Flight 800.
and ports, as well as responding to
Prospects for 2004 and Beyond national emergencies. L-3 has the
broadest array of key products to protect
e at L-3 expect that 2004 will be Robert V. LaPenta
W US citizens and the national infrastruc-
another solid year for the com- President and Chief
ture, including products and systems for
pany. With the post-Cold War transfor- Financial Officer
ESSCO was honored with a Gold
Display Systems was selected in 2003 BT Fuze Products was awarded the
Security and Detection Systems
Supplier award from Northrop
as Boeing’s 2002 Supplier of the Year quot;We Make a Difference Awardquot; for
received an award in the category of
Grumman Space Technology as a
for Aerospace Support. its Integrated Product Team (IPT)
Innovative Security Technology for its
result of the company’s performance
efforts on the M762A1/M767A1 Fuze
VCT30 explosives detection system
on a contract to supply a 100-foot-
Display Systems also received the dis- Program from the US Army's
(EDS). Awarded in Rome, Italy at
diameter metal space frame radome.
tinguished Preferred Supplier Armament Research, Engineering
AVSEC World 2002 – a cooperative
Certification Award from The Boeing and Development Center.
forum comprised of government
Space and Navigation has received the
Company in recognition of its com- organizations, airlines and airports in
Large Business of the Year award
mitment and dedication to continuous Electrodynamics received certification
the global air transport industry – the
from United Space Alliance (USA).
business process improvements, on- in the Process Validation Program
VCT30 is the only Federal Aviation
This honor is in recognition of the
time delivery, achievements in (PVP) from Lockheed Martin
Administration (FAA) ARGUS system
outstanding performance demonstrat-
advanced quality systems, customer Aeronautics Company and retained its
to receive such an award.
ed on the Space Shuttle program.
satisfaction and affordability. certification as a Silver Supplier with
The Boeing Company.

8. SECURE
COMMUNICATIONS
AND INTELLIGENCE,
SURVEILLANCE AND
RECONNAISSANCE
(ISR) secure communications, providing
secure data links, secure telephone and
network communications infrastructure
equipment and encryption management
L-3’s systems provide the command, and communication systems for tactical,
control and communications needed for unmanned and reconnaissance aircraft,
surface and undersea vessels and
network-centric interoperability. manned space flights and satellites.
The US Air Force selected L-3
T
he war in Iraq had many battlefield information from multiple Communication Systems-West to design
transformational elements, platforms and sources to the warfight- and develop the Multi-Platform
including joint operations, ers. A leader in secure communications Common Data Link (MP-CDL), sup-
the effective use of Special and ISR, L-3 is also continuing its vital porting the transmission and receipt of
Operations Forces (SOF) and role in assisting the US military in real- data between ground facilities and mul-
speedy movement of troops and sup- izing that vision. There were several tiple simultaneous air vehicle platforms.
plies. But perhaps two of the most effec- key developments in 2003 that will con- L-3 is also developing the third-genera-
tive advantages were the superiority of tinue into the future. tion Tactical Common Data Link
US technology – data links, satellites and (TCDL) system, called the Multi-Role
The future of NCCT and ISR
airborne sensors – that detect the enemy TCDL (MR-TCDL). This Joint Tactical
through challenging weather conditions; L-3 serves as a prime contractor Radio System (JTRS)-compliant system
and the coordination among ground, air for ISR by supplying signals intelli- provides wideband backbone and net-
and space assets to deliver precision- gence (SIGINT) and communications working services and operates in numer-
guided weaponry and eliminate threats. intelligence (COMINT) systems, which ous CDL, MP-CDL and satellite com-
These technological achievements when combined with human intelli- munications modes. Both MP-CDL and
are the continuation of US efforts to fully gence (HUMINT), provide real-time sit- MR-TCDL are cornerstones for future
realize the promise of network-centric uational awareness for the responding network-centric communications – pro-
warfare – providing real-time, executable warfighter. L-3 is also a leader in viding the wideband communication
6

9. portive role for the Predator and Global
fies transformational ISR.
architecture that connects critical infor-
Hawk UAV platforms and for the U-2
mation flow within the ISR community.
Reconnaissance reconnaissance aircraft.
In addition, L-3 ComCept is the
L-3 IS had record bookings for its
L-3 Communication Systems-
prime contractor for Joint and Coalition
tactical reconnaissance programs, which
West is also a major supplier to special
Forces – Network-Centric Collaborative
resulted in important new capability
intelligence military programs and air-
Targeting (NCCT), which is transform-
development efforts for the RC-135
craft. In 2003, L-3 continued its sup-
ing network-centric warfare technology.
L-3’s Network Enabled Technologies
(NET) allow forces to use their plat-
(left)
forms, sensors and weapons more effi-
Outfitting Special Operations Soldiers
ciently by managing all of their net-
worked resources as a single high-per-
The Joint Operations Group of L-3 Integrated Systems
formance system. NCCT is being
installed on the core ISR-enabled fleets
provides worldwide logistics support to the US Special
for the US and UK and is on track for a
Operations Command (USSOCOM) as part of the $1.5
successful demonstration in 2004.
NCCT participants include the Airborne
billion Special Operations Forces Support Activity con-
Warning and Control System (AWACS),
tract, one of the largest contracts in L-3’s history. L-3’s
Distributed Common Ground Systems
(DCGS), Joint Surveillance Target
integrated logistics support includes a full range of
Attack Radar System (JSTARS),
Special Operations Aviation systems integration and
Nimrod, Rivet Joint, Guardrail and the
Combined Air Operations Center. Also
maintenance, unique wheeled vehicle engineering and
in 2003, L-3 Integrated Systems (IS)
design, integrated logistics support, gunsmithing, water-
demonstrated its Lightweight SIGINT
(LITES) technology, which dramatically
craft refurbishment and communications-electronics and
increases SIGINT capability via multi-
night vision device repair and return.
ple-platform collaboration. This key
enabler for the NCCT system exempli-
NCCT uses a collaborative
machine-to-machine interface to
integrate air, space and surface
ISR assets.
www.L-3com.com L-3 Communications Summary Annual Report 7

10. Secure Communications and ISR
development program. The proposed
(right)
The High Altitude AIRS system consists of a high-per-
Observatory (HALO-
formance, infrared telescope and data
II), a modified
collection system capable of being inte-
Gulfstream business
grated on either manned or unmanned
jet, carries the L-3
Aeromet-developed air vehicles to detect, track and discrim-
Heimdall-IR™ surveil-
inate ballistic missiles in all phases of
lance system, which
flight. The system is also capable of
uses precision EO/IR
providing infrared detection and
radiometric and track-
ing data to support key detailed imaging of ground targets.
test and measurement
L-3 is also playing a critical role in
objectives during mis-
the MDA’s development of the Ground-
sile defense develop-
based Midcourse Defense Segment
ment. Aeromet was
acquired by L-3 in (GMDS). Communication Systems-
May 2003 and is now
East is under contract to provide Solid
part of L-3 IS.
State Power Amplifier Assemblies
(PAA) for the GMD Extremely High
Frequency (EHF) communications sub-
(left)
system. The PAA, developed, manufac-
L-3 IS continues to mod-
tured and tested by L-3, resides on the
ernize and support the
Ground-Based Interceptor (GBI) boost-
US Air Force’s RC-135
Rivet Joint fleet by per- er and is part of the communications
forming airframe and
system between the kill vehicle and
mission systems modifi-
the ground-based command and control
cations. The on-board
system. It collects and processes target
sensor suite allows the
mission crew to detect, acquisition information and provides in-
identify and geolocate sig-
flight updates that enable the kill vehicle
nals throughout the elec-
to acquire, intercept and destroy the tar-
tromagnetic spectrum.
get.
Secure Products
Rivet Joint. In addition, L-3 IS received tems will allow the TARS pod to provide L-3 Communication Systems-East
increased funding for ongoing and con- the warfighter with real-time Image has recently received National Security
tinuous support of the Big Safari Intelligence (IMINT) for Bomb Damage Agency (NSA) certification for the
Logistics program. L-3 also won Assessment (BDA) that is superior to RedEagle™ KG-240, a 100 Mbps net-
expanded work to provide special mis- their current reconnaissance pod. work encryptor. The RedEagle KG-240
sion self-protection and communica- A key tactical communications is the first product ever to both receive
tions systems installation for a variety of project for the US Army is the Phoenix NSA certification and meet the US gov-
aircraft platforms. program. L-3 Communication Systems- ernment's stringent High Assurance
The 14-aircraft EH-130H Com- West will design, integrate and test the Internet Protocol Interoperability
pass Call fleet performs tactical com- Tri-Band Satellite Communication Specification (HAIPIS). L-3's Red-
mand, control and communications System to be mounted on High Mobility Eagle family of products is expected to
countermeasures and recently complet- Multipurpose Wheeled Vehicles play a key role in establishing a secure
ed missions in support of Operation (HMMWV). The Phoenix system will infrastructure in support of the DoD's
Iraqi Freedom. In addition to its support replace the Army’s aging fleet of more transformational communication net-
of the Compass Call program, L-3 IS than 150 Ground Mobile Forces (GMF) working initiatives.
will now supply periodic depot mainte- Tactical Satellite Communication L-3 Communication Systems-East
nance, modifications and contractor Systems for higher bandwidth satellite reached a major program milestone in
support services for the EH-130H. communications. 2003 with the delivery of its 100,000th
L-3 Communication Systems- Secure Terminal Equipment (STE) unit
EXPanded Capability – EO/IR
East's state-of-the-art S/TAR™ Digital since procurement began in 1998. In
Solid State Recorder was selected for L-3 expanded its electro-optical 2003, there were also orders for L-3’s
the US Air Force’s F-16 Theater and infrared (EO/IR) services capability Secure Voice Conference Services
Airborne Reconnaissance System with the acquisition of Aeromet. In (SVCS) from the DHS and for STE-R as
(TARS) Electro-Optical Pre-Planned 2003, the business received an option the next member of the STE family of
products. ◊
Product Improvement (P3I) program. from the Missile Defense Agency
Along with an L-3 Communication (MDA) for the extension of the Airborne
Systems-West data link, the new subsys- Infrared Surveillance (AIRS) concept
8

11. On the battlefield, there are
no runners up.
There's a reason why L-3 is an incumbent on major C4ISR programs. L-3's secure communications and ISR
products prove themselves successfully every day in every theater – on the ground, in the air and at sea.
At the heart of the DoD's network-centric warfare systems are L-3's SATCOM terminals, secure
communications products, data links and sensors.
Helping Build the Internet in the Sky

12. T
he superior performance of
US troops in both
Training,
Afghanistan and Iraq was due
to many factors, including the
personal courage and skill of
our forces, their sharing of intelligence
Simulation
and information, the precision and
lethality of their weapons – and the qual-
ity of their training.
By using state-of-the-art training
and simulation systems that replicate the
and Support
challenges, terrain and weather condi-
tions of specific combat zones, military
personnel can achieve the readiness
needed to embark on missions. A high
degree of realism in a training environ-
ment facilitates a better response in actu-
al action and provides a key psychologi-
cal advantage in the field.
Training will continue to be a high
priority for the DoD for many reasons.
Ongoing operations and a shift toward
joint coalition forces are creating an
increased need for simulated training, as
cost factors, complex environments and
deployment schedules decrease live
training opportunities. New training
technologies, which provide realistic,
immersive experiences, will be used to
maintain optimum readiness and L-3
Link Simulation and Training is at the
forefront of this initiative with advanced
simulation products and training services.
AVCATT-A
In 2003, Link delivered four of its
unique Aviation Combined Arms Tactical
Trainer-Aviation Reconfigurable Manned
Simulator (AVCATT-A) suites to the
Army and Army National Guard.
AVCATT-A suites replicate five separate
helicopter platforms to support a highly
realistic combat environment. This envi-
(clockwise from top left)
In 2004, Link will deliver an F-16C Block 52+ Aircrew Training Device to
the Hellenic Air Force.
Link continues to deliver F/A-18E/F Tactical Operational Flight Trainers
(TOFT) to the US Navy to support pilot and weapon systems officer train-
ing. These F/A-18E/F TOFTs are the first simulators to incorporate the
company’s SimuSphere™ dodecahedron visual system display.
E-3 Airborne Warning and Control System flight crews now use modern
simulators to practice challenging air refueling operations.
The F/A-22 Weapons Tactics Trainer enables Raptor pilots to gain extensive
procedural training and build competence in both individual and team
weapon systems employment.
10

13. Flight School xxi
ronment enables aircrews to fly in all pilots use helmets that provide a 360-
combat modes, day and night, against an degree field-of-regard. L-3 is continu- In early 2004, Link won a contract
enemy force in networked exercises. ing to make investments in this technol- to provide simulators and contractor
Each suite consists of two mobile 53-foot ogy and is working on a new, light- logistics support for the Army’s Flight
trailers that house six reconfigurable sim- weight system, which will attach to a School XXI, a major program designed
ulators, a Battle Master Control Room pilot’s actual helmet, enabling on- to increase aviators’ aircraft experience
and an After Action Review Theater that demand training anytime and anywhere. prior to their first combat unit assign-
can be transported wherever necessary. In addition to AVCATT-A, L-3 ment. Under this program, Link will
L-3 will deliver three more suites and provides howitzer crew gunnery simula- develop, test, install, operate and main-
expects to receive additional production tors and training simulators for such tain all of Flight School XXI’s Advanced
contracts during 2004. major air platforms as the F/A-18, Aircraft Virtual Simulators and
One of the most innovative tech- F/A-22, F-117, F-16 and the B-2. L-3 Reconfigurable Training Devices.
nologies associated with AVCATT-A is also supplies computer-based training These training devices will incorporate
its helmet-mounted display, which sets a and simulators for the E-3 AWACS and the latest virtual simulation technologies
new standard in visual simulation dis- the P-3 maritime surveillance aircraft. developed at Link and will contribute to
play capability. Each of the suite’s 12 the Army’s goal of increasing pilot pro-
ficiency and better supporting units’
efforts to sustain combat readiness.
Link will also provide extended logistics
support for these products for the life of
the program.
There were many key awards dur-
ing 2003, including funding from
Boeing to build additional F/A-22 pilot
training devices and a delivery order
award for concurrency upgrades on air-
crew and maintenance training systems
for the US Air Force B-2A Spirit train-
ing program. There was also a strategic
win to provide contractor aircrew train-
ing services for the US Air Force’s E-8C
JSTARS Flight Crew Training program.
Link trainers already account for
over 90% of the fielded flight simulators
for F/A-18 training. In 2003, Link
received a contract to build and upgrade
F/A-18E/F flight simulators and a Link
and L-3 Government Services, Inc.
(GSI) team was awarded a contract
option to develop a second F/A-18C
Distributed Mission Training suite.
On the international front, the
Commonwealth of Australia announced
it has entered into a Deed of Agreement
with Link and Raytheon Australia to
provide the Royal Australian Air Force
(RAAF) with a modern F/A-18 Hornet
Aircrew Training System.
Also in conjunction with Link,
GSI was selected to bid on the US
Navy’s $3 billion Training Systems
Contract II from the Naval Air Systems
Command (NAVAIR) Training Systems
Division. Through 2011, Link and GSI
will have the opportunity to bid on
delivery orders for training design,
development, production, modification,
evaluation, delivery, product support
www.L-3com.com L-3 Communications Summary Annual Report 11

14. Training, Simulation and Support
The L-3 GSI team has also
and system test and evaluation. and Common Ground Station
received awards under a major intelli-
The market for government out- Systems.
gence community client blanket pur-
sourcing services also continues to be a In addition, L-3 provides adminis-
chase agreement to provide information
growth area, as it accommodates trative support to the Defense Intelligence
technology services, such as systems
expanding requirements cost-effectively. Agency, performing document searches
and enterprise engineering, communi-
L-3 divisions are equipped to respond to and providing linguists in the Middle
cations, information technology infra-
governmental agency requests for expe- East. In Iraq, MPRI is working closely
structure operations and life-cycle sup-
rienced support personnel in national with the New Iraqi Army Training
port to members of the intelligence
security and organizational management Program, augmenting the Defense
community.
programs, emergency management sys- Intelligence Agency, as well as providing
During 2003, L-3 MPRI contin-
tems and leadership training and educa- staff instruction to the Iraqi Ministry of
ued to provide its expertise in the US
tional development areas. Defense. MPRI also provides staff
and around the world with programs instruction to the Afghanistan Ministry of
Greater Demand for Services that support the US DoD, non-DoD Defense and training programs for the
agencies and companies in the corpo-
In 2003, L-3 consolidated four Afghan National Army. In Kuwait, MPRI
rate sector. MPRI provided a wide
companies, creating GSI from its has been working with the Kuwaiti
range of services to foreign govern-
Analytics, EER Systems, IMC and TMA National Guard to enhance its profession-
ments, including organizing democracy
businesses. GSI serves a customer base al development program and is also pro-
transition efforts and strategic planning.
that includes the DoD, DHS, state and viding Observer/Controller assistance to
MPRI supports the Program
local governments and selected US gov- its units.
Executive Office (PEO) Soldier
ernment intelligence agencies. L-3 is also a leading provider of
program, which distributes equipment
In 2003, GSI was awarded a task intelligence technology service and sup-
to those US Army units deploying to
order under a USSOCOM 5-year port to several US space and missile
Afghanistan and Iraq. In addition,
Indefinite Delivery/Indefinite Quantity defense organizations and is a supplier
L-3 ILEX Systems Field Software
(ID/IQ) contract to provide intelligence of engineering and scientific services
Engineers were deployed at the onset
and security support to the Joint Special and information technology services to
of Operation Enduring Freedom in
Operations Command (JSOC). Under the government sector. In 2003, L-3
Afghanistan. In Iraq, engineers are
this order, L-3 will provide analytical received awards for NUMAS (NORAD
providing direct systems support to more
support for intelligence services, includ- and US Space Command Mission
than 400 All Source Analysis Systems,
ing exploitation and analysis operations, Architecture Support) supporting
Integrated Meteorological Systems,
operational and exercise planning, NORTHCOM in areas such as cruise
Digital Topographic Support Systems
imagery system exploitation and securi- missile defense and strategic intelli-
ty management support. gence for special operations units devel-
oping critical communications links
around the world. ◊
Photo: Courtesy of Department of Defense
MPRI is recognized worldwide as a leader
in providing services related to military
leadership and organizational development,
strategic analysis, studies and assessments,
homeland security, anti-terrorism and
emergency management. MPRI currently
distributes equipment to those US Army
units deploying to Afghanistan and Iraq and
provides training programs for the Afghan
National Army.
12

15. Preparing for battle.
Anytime. Anywhere.
For the first time…a mobile, reconfigurable training system, enabling teams
to operate the US Army's full complement of tactical helicopters and
collectively train as they will fight…before they ever leave the ground.
The Aviation Combined Arms Tactical Trainer-Aviation Reconfigurable Manned
Simulator (AVCATT–A) - developed exclusively by Link Simulation and Training.
Training as Real as the Battlefield

16. Aviation
Products
and Aircraft
Modernization
T
he Aviation Products and providers in this market niche. L-3
Aircraft Modernization made the second-largest acquisition in
segment expanded sig- its history with the addition of a former
nificantly in 2003, taking joint-venture partner, Vertex Aerospace
advantage of growth in LLC, a leader in logistics support, mod-
the military aircraft modernization por- ernization, maintenance, supply chain
tion of the DoD budget and providing management and depot services. Now
additional capabilities to key interna- an L-3 IS subsidiary, Vertex brings sup-
tional allies and customers. Supporting port for 2,800 active fixed- and rotary-
current operations in Afghanistan and wing aircraft, as well as over 85 vehicle
Iraq necessitates modernization and platforms and operations in 306 military
maintenance services to keep the fleet in sites and other US government sites
good working order. worldwide to L-3.
At the same time, the balance Prior to its acquisition of Vertex
between new platforms and fleet Aerospace, L-3 had partnered with the
upgrades is another important develop- company, as well as Paragon Systems
ment that will impact DoD spending and U.S. Helicopter, to win a competi-
over the next several years. Although tively bid, 10-year, $2.7 billion contract
the DoD anticipates the production of to provide contractor logistics support at
new and expensive platforms for the Fort Rucker, Alabama. The partnership
armed services, there is a limit to its will provide personnel, management,
spending. DoD officials are already material parts, supplies, transportation
decreasing the quantities they order of and equipment to perform aviation unit
each new platform and are looking to maintenance, aviation unit intermediate
upgrade and maintain existing platforms maintenance and approved depot main-
to ensure readiness and keep within tenance in support of flight training of
spending limits. They are citing the all assigned rotary-wing aircraft at Fort
superior performance of upgraded US Rucker.
platforms in Afghanistan and Iraq as L-3 also acquired the US and
evidence that the US can be effective by Canada-based Military Aviation
using existing aircraft in transformation- Services (MAS) from Bombardier Inc.
al ways. L-3 MAS is a leader in systems engi-
neering support and aircraft moderniza-
L-3 adds Vertex and MAS tion and offers a full range of technical
In military aircraft modernization, services in maintenance, repair and
L-3 added two synergistic companies to upgrade for military aircraft and region-
its L-3 IS and Spar Aerospace opera- al jets. This acquisition significantly
tions, making it one of the largest enhances L-3’s Canadian operations
14

17. optimized C-130 weapon systems man-
(WESCAM and Spar Aerospace) and
(below)
agement requirements of the DND.
favorably positions other divisions with-
An L-3 joint-venture team won the contract
In addition, L-3 MAS is instru-
in L-3 for future in-country opportuni- to provide maintenance and logistics sup-
mental in the Canadian CF-18 modern-
ties. port for rotary-wing aircraft at Fort
ization program, retrofitting the first
In 2003, L-3 Spar completed the Rucker, Alabama, which represents the
largest aircraft maintenance contract in the CF-18 with an upgraded avionics suite
design, development and prototyping of
DoD. Aviation operations at Fort Rucker
in 2003. MAS is developing a Center
a number of structural life extension and
account for approximately 40% of the US
Barrel Replacement prototype, a critical
systems reliability improvements for the Army's total flying program. Supported
milestone for the CF-18 mid-life struc-
Lockheed Martin C-130 transport air- aircraft types include AH-64A, AH-64D,
tural program. L-3 MAS is also work-
craft. In addition, Spar was awarded the CH-47D, EH-60A, OH-58A/C, OH-58D,
TH-67, UH-1 and UH-60A. ing with Sikorsky Aircraft Corporation
production phase of the Canadian
and General Dynamics Canada to offer
Department of National Defence (DND)
in-service support of the H-92 helicop-
C-130 structural refurbishment and
ter for the Maritime Helicopter Program
wiring upgrade program. Spar intends
– the Canadian government’s largest
to combine its C-130 depot-level main-
military capital program for the foresee-
tenance, structural modification and
able future.
avionics upgrade capabilities and pro-
gram experience to offer comprehensive
Integrated systems Contract Wins
fleet support to respond to the upcoming
L-3 IS has maintained a long
and successful relationship with the
USSOCOM and in 2003 was awarded a
10-year, $1.5 billion ID/IQ award.
Under this contract, L-3 will provide
logistics support to the USSOCOM, its
component commands, selected DoD
customers and designated government
agencies. The program is known as
Special Operations Forces Support
Activity (SOFSA).
L-3 IS was also awarded an initial
contract for the Multimission Command
and Control Aircraft (MC2A) for design
of important radar-related aircraft sys-
tems as part of the MC2A Weapon
Systems Integration effort. L-3 also
completed the upgrade of the US Navy’s
E-6 fleet to an E-6B configuration,
which now performs the missions of the
E-6A Take Charge and Move Out
(TACAMO) and the US Air Force
EC-135 Airborne Command Post fleets.
In 2003, L-3 IS extended its record of
consecutive on-time US Navy deliveries
to 158, which includes E-6B and P-3 air-
craft.
In the international arena, L-3 IS
continued its work on designing and
modifying the prototype aircraft for the
Canadian CP-140 Aurora Incremental
Modernization Program. L-3 will also
continue delivering upgraded AP-3Cs to
the RAAF as part of the Sea Sentinel
program. The AP-3Cs have already
been successful in service in the Middle
East and in winning the prestigious
Fincastle trophy, an international
anti-submarine warfare competition.
www.L-3com.com L-3 Communications Summary Annual Report 15

18. Aviation Products and Aircraft Modernization
L-3’s Military Airborne
The RAAF has also certified L-3 MAS tration (FAA) Technical Standard Order
Surveillance System (MASS™), an
as an Authorized Engineering Organ- (TSO) certification approval of its first
enhanced TCAS for military formation
ization (AEO) to perform work on its product specifically developed for the
and rendezvous operations, made its
F/A-18 aircraft. commercial avionics marketplace – the
PVI-600™ Series commercial Multi- first flight in August of 2003. Produced
Aviation Products by L-3’s Aviation Communication &
Function Display (MFD). This active
Surveillance Systems (ACSS), MASS
In aviation products, L-3 received matrix liquid crystal display (AMLCD)
has been selected for the Boeing 767
a host of key contracts in 2003, includ- replaces existing radar indicators with
Global Tanker Transport Aircraft. In
ing Communication Management an instrument capable of displaying
addition, L-3 Electrodynamics received
Systems for B737 aircraft to support the radar, Traffic Alert and Collision
a follow-on contract from Lockheed
Special Air Mission of the US Air Force, Avoidance System (TCAS) and Terrain
Martin for Crash Survivable Memory
as well as displays for the C-130J and Awareness and Warning System
Units (CSMU) for the F-22 Raptor, as
KC-130J and the F-15K Eagle fighter (TAWS) data. L-3 also delivered the
well as a contract from Boeing for the
aircraft. There was also an award for the Display & Control Subsystem (DCS) for
initial production of ten Advanced
Army Airspace Command and Control the Virtual Imaging System for
Signal Data Computers (ASDC) for the
(A2C2) program, a tactical operations Approach and Landing (VISUAL) ini-
T-45 Goshawk trainer. Additionally, L-3
command post hosted on a UH-60 Black tiative. This system provides vital situa-
Targa Systems has developed an
Hawk helicopter. L-3 Display Systems tional awareness information to the
Ethernet Data Transfer System for the
also won awards for the AH-64 Apache, Landing Signal Officer during aircraft
X-45 Unmanned Combat Aerial Vehicle
C-130H Hercules, CH-46 Sea Knight, recovery operations on conventional air-
(UCAV) development program.
C-27J Spartan, C-17 Globemaster, craft carriers.
L-3 has the distinction of being
T-38C Talon, A/MH-6 SOF helicopters
involved in the creation of the world’s
and JAS-39 Gripen.
largest airborne observatory for NASA
In 2003, Display Systems
and the German space agency DLR. A
received Federal Aviation Adminis-
2.5-meter telescope assembly from
Germany was installed by L-3 IS aboard
the 747 aircraft that will serve as the
Stratospheric Observatory for Infrared
Astronomy (SOFIA).
Growing General Aviation Markets
In addition to providing compre-
hensive military aviation products and
services, L-3 offers the marketplace a
broad range of products for commercial
(above left to right) and general aviation. These include
Display Systems will be providing mission computer Display Units (DU) for the C-17
cockpit displays, collision avoidance
Globemaster III airlifter. These 4-inch by 3-inch active matrix liquid crystal displays feature
and proximity warning systems, flight
high-resolution, high-brightness performance and night vision goggle compatibility.
management systems and solid state
SkyWatch is the leading general aviation collision avoidance system, providing pilots with up
flight data and cockpit voice recorders
to the second traffic information anywhere in the world. Its active technology operates
and data transfer units.
independently of ground-based radar and easily integrates with most MFDs, Electronic Flight
In 2003, commercial air travel
Instrument Systems (EFIS) and radar indicators.
continued to be weak due to a combina-
(below left to right)
tion of economic recession, the presence
Display Systems was awarded a multi-year contract to provide cockpit displays for C-130J
of SARS in Asia and lingering air travel
aircraft for the US Air Force and KC-130J aircraft for the US Marines.
safety concerns. However, during the
The ACSS FAA-certified T2CAS is a unique safety avionics product that combines a Terrain
fourth quarter, there was an increase in
Awareness and Warning System (TAWS) with the industry's leading Traffic Alert and Collision
travel and many analysts believe that
Avoidance System, the TCAS 2000. T2CAS can be applied to any air transport, regional,
business or military aircraft and provides unique predictive warnings and cockpit displays. there will be a recovery in this industry
beginning in 2004.
Despite this environment, L-3
ACSS achieved some key milestones in
2003. Its next-generation TCAS was
selected by Dassault to be a standard
installation on the new Falcon 7X busi-
ness jet. T2CAS™, a combined TCAS
16