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<strong>Credit</strong> <strong>Suisse</strong><br />
Aerospace and Defense Conference<br />
November 29, 2007<br />
Howard L. Lance<br />
Chairman, President and Chief Executive Officer
Forward looking statement<br />
Statements in this presentation that are not historical facts are forward-looking statements that reflect management's current<br />
expectations, assumptions, and estimates of future performance and economic conditions. Such statements are made in reliance<br />
upon the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of<br />
1934. Forward-looking statements in this presentation include but are not limited to: earnings guidance for fiscal 2008; the potential<br />
value of contract awards and potential contract awards; and statements regarding outlook, including expected revenue growth. The<br />
Company cautions investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results<br />
and future trends to differ materially from those matters expressed in or implied by such forward-looking statements. The<br />
Company's consolidated results and the forward-looking statements could be affected by many factors, including but not limited to:<br />
our participation in markets that are often subject to uncertain economic conditions which makes it difficult to estimate growth in our<br />
markets and, as a result, future income and expenditures; our dependence on the U.S. government for a significant portion of our<br />
revenues, as the loss of this relationship or a shift in U.S. government funding could have adverse consequences on our future<br />
business; potential changes in U.S. government or customer priorities due to program reviews or revisions to strategic objectives,<br />
including termination of or potential failure to fund U.S. government contracts; risks inherent with large long-term fixed-price<br />
contracts, particularly the ability to contain cost overruns; the performance of critical subcontractors or suppliers; financial and<br />
government and regulatory risks relating to international sales and operations, including fluctuations in foreign currency exchange<br />
rates and the effectiveness of our currency hedging program; our ability to continue to develop new products that achieve market<br />
acceptance; the consequences of future geo-political events, which may affect adversely the markets in which we operate, our<br />
ability to insure against risks, our operations or our profitability; strategic acquisitions and the risks and uncertainties related thereto,<br />
including our ability to manage and integrate acquired businesses; potential claims that we are infringing the intellectual property<br />
rights of third parties; the successful resolution of patent infringement claims and the ultimate outcome of other contingencies,<br />
litigation and legal matters; customer credit risk; the fair values of our portfolio of passive investments, which values are subject to<br />
significant price volatility or erosion; risks inherent in developing new technologies; changes in our effective tax rate that may have<br />
an adverse effect on our results of operations; the impact of the results of Harris Stratex Networks, which may vary significantly and<br />
may be difficult to forecast; the potential impact of natural disasters on our significant operations in Florida, California and other<br />
locations; general economic conditions in the markets in which we operate; changes in future business conditions that could cause<br />
business investments and/or recorded goodwill to become impaired; and our ability to attract and retain key employees. Further<br />
information relating to factors that may impact the Company's results and forward-looking statements are disclosed in the<br />
Company's filings with the SEC. Harris disclaims any intention or obligation, other than imposed by law, to update or revise any<br />
forward-looking statements, whether as a result of new information, future events, or otherwise.<br />
Overview, 2 <strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
Harris Corporation overview<br />
• Communications and technology company serving government<br />
and commercial markets with products, systems and services<br />
– Defense Communications & Electronics<br />
– Government Communications Systems<br />
– Broadcast Communications<br />
– Harris Stratex Networks (Microwave Communications)<br />
• Significant intellectual property and technology portfolio<br />
• Global reach with offices and distributors in 150 countries<br />
• Market leadership in mission-critical communications applications<br />
– #1 supplier of HF and multi-band tactical radio systems<br />
– Leader in SATCOM terminal systems, satellite antennas, avionics<br />
– Design, deploy and manage high-reliability communications networks<br />
– #1 provider of HD (High-Definition) broadcast infrastructure<br />
– #1 microwave systems supplier in North America<br />
Overview, 3 <strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
Consistent track record of growth<br />
($ in millions)<br />
$2,519<br />
+ 19%<br />
$3,001<br />
+ 16%<br />
Strong revenue and earnings per share trends<br />
$3,475<br />
+ 22%<br />
$4,243<br />
21%<br />
$5,100<br />
FY04 FY05 FY06 FY07 FY08<br />
Guidance*<br />
* Midpoint of fiscal 2008 guidance provided on November 1, 2007.<br />
** Reference non-GAAP reconciliation on the Harris investor relations website.<br />
Non-GAAP<br />
EPS**<br />
FY04 FY05 FY06 FY07 FY08<br />
Guidance*<br />
GAAP EPS $.92 $1.46<br />
$1.71<br />
$3.43 $3.28 – $3.38<br />
Overview, 4 <strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007<br />
$.96<br />
+ 57%<br />
$1.51<br />
+ 47%<br />
$2.22<br />
+ 26%<br />
$2.80<br />
21%<br />
$3.35 – $3.45
Segment revenue trends<br />
($ in millions)<br />
$3,475<br />
$4,243<br />
$5,100<br />
FY06 FY07 FY08*<br />
* Midpoint of fiscal 2008 guidance provided on November 1, 2007.<br />
Harris Stratex<br />
Networks<br />
Broadcast<br />
Communications<br />
Defense<br />
Communications &<br />
Electronics<br />
Government<br />
Communications<br />
Systems<br />
Overview, 5 <strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
Engineering R&D investments<br />
Fiscal 2007 – $924 million<br />
Government<br />
Funded<br />
$689<br />
Internally<br />
Funded<br />
$235<br />
$111<br />
$137<br />
$198<br />
($ in millions)<br />
$235<br />
FY04 FY05 FY06 FY07<br />
Overview, 6 <strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
Increase in new product revenue<br />
($ in millions)<br />
Revenue<br />
$800<br />
600<br />
400<br />
200<br />
0<br />
Total product revenue<br />
New product revenue<br />
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4<br />
Fiscal year 2006 Fiscal year 2007<br />
New products defined as products introduced within past 3 years.<br />
Percent of<br />
revenue<br />
40<br />
Overview, 7 <strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007<br />
%<br />
35<br />
30<br />
25<br />
20<br />
15<br />
10<br />
5<br />
0
Robust new product releases<br />
Falcon ® Falcon III<br />
MB handheld<br />
® III<br />
MB handheld<br />
Falcon ® Falcon III MB<br />
SINCGARS alternative<br />
® III MB<br />
SINCGARS alternative<br />
NEXIO AMP<br />
advanced video server<br />
CENTRIO Multi-viewer<br />
Falcon ® Falcon III manpack<br />
and high-capacity<br />
data radios<br />
® III manpack<br />
and high-capacity<br />
data radios<br />
FlexStar HD<br />
radio exciter<br />
IconMaster<br />
HD master<br />
control<br />
NetVx NetVx MPEG-4 HD Encoder<br />
MPEG-4 HD Encoder<br />
Falcon ® Falcon Secure<br />
Personal Role<br />
Radio<br />
® Secure<br />
Personal Role<br />
Radio<br />
SecNet ® SecNet 54<br />
Secure<br />
Wireless LAN<br />
® TRuepoint 6000<br />
54<br />
Microwave radio<br />
Secure<br />
Wireless LAN<br />
Platinum router<br />
High-Capacity<br />
Line of Site<br />
radio<br />
(HCLOS)<br />
Mobile TV<br />
transmitter<br />
Overview, 8 <strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
Solid financial position<br />
• Excellent liquidity<br />
– $359 million in cash, cash equivalents and short-term investments<br />
– $525 million in credit facilities (Harris Stratex $25 million)<br />
• Expect to refinance the $400 million in commercial paper used to fund<br />
Multimax acquisition with longer-term, fixed-rate debt<br />
– $550 to $600 million in expected cash flow from operations for fiscal 2008<br />
• Strong balance sheet<br />
– Total-debt-to-total-capital ratio of 31%<br />
– Debt ratings at BBB+/Baa2<br />
• Increased dividend<br />
– $.15 per share quarterly dividend<br />
• $600 million stock repurchase program with $350 million remaining<br />
Fiscal 2008 guidance provided on November 1, 2007.<br />
Overview, 9 <strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
Defense Communications<br />
and Electronics<br />
Defense Communications and Electronics, 10 <strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
Enabling the U. S. Department of<br />
Defense Global Information Grid<br />
Defense Communications and Electronics, 11 <strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
Defense Programs<br />
Defense Programs, 12<br />
Defense Communications and Electronics<br />
Major Programs<br />
• F/A-35 Joint Strike Fighter (JSF);<br />
F/A-22 Raptor; F/A-18 E/F Super Hornet<br />
• Multi-functional Information Distribution<br />
System (MIDS)<br />
• Large Aperture Multi-band Deployable<br />
Antennas (LAMDA)<br />
• Multiple Launch Rocket System (MLRS)<br />
• Improved Fire Control Systems (IFCS)<br />
• Multi-band Shipboard SATCOM Terminal<br />
(MSSCT)<br />
• Hawklink Common Data Link (LAMPS)<br />
• Warfighter Information Network–Tactical<br />
(WIN–T)<br />
<strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
RF Communications Division<br />
RF Communications, 13<br />
Defense Communications and Electronics<br />
• Tactical radios<br />
– Interoperable Falcon ® II,<br />
software-defined tactical radios<br />
• HF, VHF, UHF, and multiband –<br />
manpack, handheld, vehicular<br />
– Falcon ® III multiband, multimission,<br />
JTRS SCA compliant tactical radios<br />
• Cryptographic solutions<br />
– NSA-recognized leaders in<br />
embedded encryption — Sierra , Citadel ®<br />
– Core differentiator and competitive barrier<br />
• Communications Security<br />
<strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
Global ground tactical radio<br />
systems market leadership<br />
Raytheon<br />
General Dynamics<br />
Rohde & Schwarz<br />
Tadiran<br />
RF Communications, 14<br />
Defense Communications and Electronics<br />
All Others<br />
Thales<br />
Harris<br />
33%<br />
Harris market share increased from 27% in CY2005<br />
to 33% in CY2006 in a market that grew 23%<br />
Harris market share estimates based on calendar year 2006 ground-based, global tactical radio market of $2.7B compared to $2.2B in the prior year.<br />
ITT<br />
<strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
Expanding the addressable market<br />
with new products<br />
Harris core tactical radio addressable market size<br />
Addressable market expansion – Falcon III<br />
Further addressable market expansion<br />
$1.6B<br />
VHF Other<br />
MB Manpack<br />
HF<br />
RF Communications, 15<br />
Defense Communications and Electronics<br />
UHF<br />
Addressable CY05<br />
$2.7B<br />
VHF<br />
SINCGARS<br />
MB Handheld<br />
VHF Other<br />
MB Manpack<br />
HF<br />
UHF<br />
Addressable CY06<br />
$6.0B<br />
International<br />
Systems<br />
& Programs<br />
Portable<br />
SATCOM<br />
COMSEC<br />
Terminals<br />
High-Capacity LOS<br />
Falcon Watch Sensor<br />
High-Capacity Data Radio<br />
Secure Personal Radio<br />
VHF<br />
SINCGARS<br />
MB Handheld<br />
VHF Other<br />
MB Manpack<br />
HF<br />
UHF<br />
Addressable potential<br />
<strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
RF Communications Division —<br />
Key differentiators<br />
RF Communications, 16<br />
Defense Communications and Electronics<br />
• Successful “commercial” business model<br />
– Anticipate market needs<br />
– Invest internal R&D resources to create<br />
leading-edge products designed to military<br />
standards<br />
– Provide ready-to-ship, off-the-shelf products<br />
• Technology leader<br />
• Global strength — domestic and<br />
international markets<br />
• World-class distribution channels<br />
supporting historically strong and<br />
growing international position<br />
• Outstanding field service and support<br />
<strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
Falcon® III — fulfilling tomorrow’s<br />
promise of JTRS today<br />
RF Communications, 17<br />
Defense Communications and Electronics<br />
• Builds on successful Falcon II family<br />
• Brings future capabilities to the customers now<br />
• Designed to meet tomorrow’s data networking<br />
requirements and transformation to true<br />
network-centric operations<br />
• Future-proof design via JTRS Software<br />
Communications Architecture (SCA)<br />
operating system<br />
• Significant marketplace endorsement — first to be<br />
JTRS-certified compliant without waivers<br />
• Advanced capabilities also include:<br />
– Extended frequency range from 512 MHz to 2 GHz<br />
– Significantly reduced weight and size<br />
– Wideband secure networking incorporated<br />
– Programmable and NSA certified encryption<br />
• Gaining significant market traction — 21,000 units<br />
already shipped!<br />
<strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
“Which would you rather carry?”<br />
RF Communications, 18<br />
Defense Communications and Electronics<br />
<strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
Falcon® III is changing the game<br />
from legacy . . .<br />
• SINCGARS radios that only provide<br />
single-mode, short-range, line-of-site<br />
communications<br />
RF Communications, 19<br />
Defense Communications and Electronics<br />
SINCGARS<br />
Legacy<br />
SINCGARS<br />
<strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
. . . to multiband, multimission JTRS<br />
radio systems<br />
• Provide multimode interoperability<br />
– Ground-to-ground SINCGARS<br />
– Ground-to-air<br />
– Long range tactical satellite<br />
– Easy vehicle dismount – mobility<br />
– Interoperability with legacy radios<br />
• Other advance capabilities<br />
– Extends frequency range — 512 MHz to 2 GHz<br />
– Significantly reduces weight and size<br />
– Incorporates secure wideband networking<br />
– Encryption programmable and NSA certified<br />
• Software upgradeable to incorporate new<br />
waveforms as developed<br />
– Already incorporates APCO P25<br />
first responder interoperability<br />
– Search and rescue functionality<br />
Falcon III addresses the full range of mission requirements today toda today y with the<br />
upgrade capability to address the requirements of the future<br />
RF Communications, 20<br />
Defense Communications and Electronics<br />
SINCGARS<br />
FALCON III<br />
AN/VRC-110<br />
Search & rescue<br />
Ground-to-air<br />
TACSAT<br />
First responders<br />
Easy<br />
dismount<br />
<strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
Competitive landscape<br />
HARRIS<br />
Falcon II<br />
Falcon III<br />
Thales<br />
ITT<br />
Raytheon<br />
Tadiran<br />
Selex<br />
Rohde &<br />
Schwarz<br />
HF<br />
MP<br />
VHF<br />
MP/HH<br />
�<br />
RF Communications, 21<br />
Defense Communications and Electronics<br />
Domestic<br />
Multiband<br />
MP HH<br />
�<br />
SPR<br />
HCDR HCLOS<br />
HF<br />
MP<br />
VHF<br />
MP/HH<br />
� �<br />
International<br />
Multiband<br />
MP HH<br />
SPR HCDR HCLOS<br />
� � � � �<br />
� � � � � � � � � � �<br />
�<br />
�<br />
� � �<br />
� �<br />
� �<br />
� � � � � �<br />
� �<br />
� � �<br />
�<br />
� �<br />
� � �<br />
<strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
Near-term U.S. DoD opportunities<br />
total more than $3B<br />
Mine Resistant Ambush Protected<br />
vehicle (MRAP) program<br />
JTRS Handheld Radio Program and TACP<br />
modernization for the U.S. Air Force<br />
RF Communications, 22<br />
Defense Communications and Electronics<br />
HF and multiband expansion,<br />
SINCGARS alternative for U.S. Army<br />
DoD-wide DoD wide HF radio procurement<br />
contract for the U.S. SOCOM<br />
HF and Multiband, Multimission Radio<br />
follow-on follow on (MBMMR) and tactical handheld<br />
radios for the Marine Corps<br />
DoD-wide DoD wide competitive procurement for<br />
JTRS handheld radios (CISCHR)<br />
<strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
Near-term international programs total<br />
more than $1.5B<br />
Europe<br />
•• UK UK MOD MOD<br />
•• Netherlands Army Army<br />
•• Netherlands Air Air Force Force<br />
•• Romania MOD MOD<br />
Latin Latin and and Central America<br />
•• Mexico Mexico Army Army<br />
•• Mexico Mexico Navy Navy<br />
•• Chile Chile Army Army<br />
•• Chile Chile Air Air Force Force<br />
•• Chile Chile SOF SOF<br />
RF Communications, 23<br />
Defense Communications and Electronics<br />
+<br />
Middle Middle East East and and Africa Africa<br />
••Algeria Algeria MND MND<br />
••Algeria Algeria Gendarmerie<br />
••UAE UAE SOC SOC<br />
••Saudi Saudi SANG SANG<br />
••Kenya Kenya MOD MOD<br />
••Iraq Iraq National Army Army<br />
Central Asia Asia<br />
•• Pakistan Army Army<br />
•• Pakistan Frontier Corps Corps<br />
•• Georgia MOD<br />
MOD<br />
+<br />
Asia Asia Pacific Pacific<br />
•• Philippines MOD MOD<br />
•• Australia Army Army<br />
•• Indonesia MOD MOD<br />
<strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
International systems opportunities<br />
Defense Communications and Electronics, 24 <strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
Harris “Security Shelter”<br />
Defense Communications and Electronics, 25 <strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
Government Communications Systems<br />
Civil Programs<br />
National Intelligence Programs<br />
Information Technology Services<br />
Government Communications Systems, 26 <strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
Government Communications Systems<br />
customer base<br />
Civil Programs<br />
• FAA<br />
• Census Bureau<br />
• NOAA<br />
• Gov’t Printing<br />
Office<br />
• Dept. of Justice<br />
IT Services Programs<br />
• NRO<br />
• US Air Force<br />
• US Navy<br />
• Dept. of State<br />
• Postal Service<br />
• Dept. of Health & Human Services<br />
National<br />
Intelligence<br />
Programs<br />
• NSA<br />
• NRO<br />
• NGA<br />
• Other<br />
classified<br />
Based on pro forma fiscal year ended June 2007 revenue of $1.8 billion for Government Communications Systems segment as if Multimax, Inc. had been<br />
acquired at the beginning of the fiscal year.<br />
Government Communications Systems, 27 <strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
Government Communications Systems<br />
Civil Programs<br />
FAA Telecommunications<br />
Infrastructure (FTI) Network<br />
FAA Voice Switching and Control<br />
System (VSCS)<br />
FAA Weather and Radar Processing<br />
(WARP)<br />
FAA Operational and Supportability<br />
Implementation (OASIS) for weather<br />
and flight planning<br />
U.S. Census Bureau databases<br />
(MAF/TIGER)<br />
U.S. Census Bureau Field Data<br />
Collection Automation Program<br />
(FDCA)<br />
U.S. Government Printing Office (GPO)<br />
digital catalog database conversion<br />
Information Technology<br />
Services<br />
Navy Marine Corps Intranet (NMCI)<br />
program<br />
Government-Wide Acquisition<br />
Contracts (GWACs) including:<br />
NETCENTS for the Air Force; ITES-<br />
2S for the Army; EAGLE for the<br />
Department of Homeland Security;<br />
Networks Enterprise for the General<br />
Services Administration<br />
National Reconnaissance Office (NRO)<br />
operations, maintenance, and<br />
support (Patriot)<br />
Air Force 50th Space Wing Operational<br />
Space Services and Support (OSSS)<br />
Air Force 50th Space Wing Mission<br />
Communication Operations and<br />
Maintenance (MCOM)<br />
DISA Crisis Management System<br />
(CMS)<br />
U.S. Department of State, Bureau of<br />
Consular Affairs modernization and<br />
support<br />
National Intelligence<br />
Programs<br />
CLASSIFIED<br />
Government Communications Systems, 28 <strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
Broadcast Communications<br />
• Video Infrastructure &<br />
Digital Media including<br />
routers, master control,<br />
networking, test and<br />
measurement, servers, graphics<br />
and news editing<br />
• Software Solutions to<br />
manage digital media workflow,<br />
including sales, traffic & billing,<br />
scheduling, video asset<br />
management, and<br />
play-out automation<br />
• Transmission Systems for<br />
over-the-air TV and radio stations<br />
Broadcast Communications, 29 <strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
Capabilities across the entire Broadcast<br />
workflow value chain<br />
Harris solutions can take you<br />
from start to finish<br />
Automation<br />
Control & monitoring<br />
Channel release<br />
Test & measurement<br />
Core processing<br />
Networking & routing<br />
Broadcast graphics<br />
Newsrooms & editing<br />
Media management<br />
Ingest<br />
Scheduling<br />
Sales<br />
Transmission<br />
Broadcast Communications, 30 <strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
New HD consumer services . . .<br />
Global HDTV households by service<br />
$ in millions<br />
30<br />
25<br />
20<br />
15<br />
10<br />
5<br />
0<br />
2007 2008 2009 2010<br />
Satellite TV Cable TV Telco TV Terrestrial TV<br />
Source: In-Stat<br />
Broadcast Communications, 31 <strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
. . . drive technology spending . . .<br />
Global broadcast technology revenue projections<br />
$ in billions<br />
8<br />
7<br />
6<br />
5<br />
4<br />
3<br />
2<br />
1<br />
0<br />
2007 2008 2009 2010<br />
Americas EMEA APAC<br />
Source: IABM<br />
Broadcast Communications, 32 <strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
. . . in which we participate fully<br />
Global broadcast technology market by segment<br />
3%<br />
7%<br />
11%<br />
5%<br />
4%<br />
13%<br />
4%<br />
1%<br />
$12B total market<br />
$5.8B Harris addressable market<br />
Source: IABM<br />
Broadcast Communications, 33 <strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007<br />
14%<br />
32%<br />
Playout and delivery<br />
Acquisition and capture<br />
Storage<br />
Services<br />
Production and post<br />
Content infrastructure<br />
Test, QC and monitoring<br />
Automation and control<br />
Audio<br />
DRM, DAM, and library
Broadest offering in the market<br />
Harris<br />
Avid<br />
Thomson<br />
Grass Valley<br />
Tektronix<br />
Sony Broadcast<br />
Miranda<br />
Evertz<br />
Omnibus<br />
News Post-<br />
Production<br />
�<br />
Digital Media<br />
Branding/<br />
Graphics<br />
Video Distribution Systems<br />
Storage/<br />
Servers<br />
Video<br />
Distribution<br />
Video & Networking<br />
Video<br />
Processing<br />
� � �<br />
� � � �<br />
Signal<br />
Mgmt/T&M<br />
Software<br />
Automation<br />
Manage/<br />
Ingest<br />
TV & Radio<br />
Transmitters<br />
Broadcast Communications, 34 <strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007<br />
Traffic<br />
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One source for HD solutions<br />
Technology innovation<br />
ONE supplier of integrated<br />
workflow solutions<br />
ONE supplier of integrated<br />
signal flow solutions<br />
Services innovation<br />
ONE face to the customer<br />
ONE approach for order fulfillment<br />
ONE number to call for<br />
service and support<br />
ONE resource for technical<br />
expertise and envisioning<br />
Broadcast Communications, 35 <strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
Harris Stratex Networks<br />
• Combination of Harris Microwave<br />
Division and Stratex Networks, Inc.<br />
(NASDAQ: HSTX)<br />
– Harris owns ~56% of shares and<br />
consolidates financial results<br />
• Provider of secure wireless<br />
transmission network solutions<br />
– Traditional backhaul, last-mile access,<br />
long-haul trunking, carrier-grade Ethernet<br />
– New high-growth markets such as nodal<br />
networking, IP transport;<br />
– Network management solutions;<br />
– Comprehensive engineering and services<br />
• Global customer base<br />
– Mobile and fixed wireless operators,<br />
WiMAX networks, private enterprise<br />
– Public safety networks for police, fire,<br />
emergency medical, homeland security<br />
– Government and defense agencies<br />
Harris Stratex Networks, 36 <strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
Combination offers compelling<br />
strategic and financial rationale<br />
• Greater economies of scale<br />
• Complementary global<br />
distribution channels and<br />
expanded customer footprint<br />
• Serving a large and growing<br />
market with broadest offering<br />
• Both brands recognized for<br />
technology innovation and<br />
best-in-class wireless<br />
solutions<br />
• Expected cost synergies of<br />
approximately $35M<br />
Harris Stratex Networks, 37 <strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
Tadiran<br />
Ceragon<br />
NEC<br />
Market leadership<br />
North American market Global market<br />
Others<br />
Alcatel<br />
Harris Stratex Harris Stratex<br />
Nokia-Siemens<br />
Alcatel<br />
Ericsson<br />
World’s World World’s s largest independent supplier of<br />
wireless transmission network solutions<br />
Others<br />
Harris Stratex Networks, 38 <strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007<br />
NEC<br />
Eltek-Nera<br />
Fujitsu
Revenue by region<br />
($ in millions)<br />
North America<br />
$238<br />
Latin America<br />
$50<br />
Africa<br />
$172<br />
Based on pro forma revenue of $665 million for the 12 months ended September 2007.<br />
Europe/Middle East/Russia<br />
$156<br />
Asia/Pacific<br />
$49<br />
#1 North America<br />
#3 Middle East/Africa<br />
Harris Stratex Networks, 39 <strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
Global wireless momentum —<br />
more demand, greater bandwidth<br />
• Mobile subscriber growth<br />
– More than doubled from 1B<br />
subscribers in 2004 to 2.5B<br />
subscribers by end of 2007<br />
– Mobile networks to cover 90% of<br />
world population by 2010<br />
– Capital cost of providing mobile<br />
coverage is one-tenth of a fixed<br />
connection<br />
– Existing and new network growth<br />
• Transition to an IP infrastructure<br />
• 3G build-outs<br />
• First signs of WiMAX, spurring<br />
more wireless demand<br />
Harris Stratex Networks, 40 <strong>Credit</strong> <strong>Suisse</strong> Aerospace and Defense Conference<br />
November 29, 2007
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