Telephonics Corporation Signs Contract with Lockheed Martin Canada to Provide Combat System Component for Halifax Class Frigate Upgrade

$US16.3 million award is for Identification Friend or Foe (IFF) system

8/3/2009  -  Telephonics Corporation, a wholly owned subsidiary of Griffon Corporation (NYSE:GFF), announced today that it signed a contract with Lockheed Martin Canada (NYSE: LMT) to provide an Identification Friend or Foe (IFF) Interrogator as part of the Halifax Class Modernization Program. The initial award is for $US16.3 million with a projected value expected to exceed $US20 million. This contract represents Telephonics ' first entry into the shipboard IFF market for its all new Common Module ALL MODE interrogator system. Variants of this equipment are currently sold under the nomenclature AN/UPX-40, 40(V), 505, 505(V) and AN/UPX-43 (V).

"Telephonics has been in the worldwide shipboard IFF markets with our BTE-2000 IFF processor and on board U.S. Navy carriers with our AN/TPX-42 systems for many years. Now, together with Lockheed Martin Canada, we are preparing to meet the threat of increased littoral conflicts in this century and it is critical that IFF sensors such as ours have the automation and capability to rapidly and accurately identify friendly and neutral parties in dense platform environments in order to prevent fratricide," said Kevin McSweeney, President of Telephonics Radar and IFF Systems.

Lockheed Martin Canada is the prime contractor for the Halifax Class Modernization, and has been the combat systems integrator for the Halifax Class for the past two decades. The company hosts the Canadian Navy's integration lab at its facility in Montreal and employs dedicated teams in Esquimalt, BC, and Halifax, NS, to maintain and upgrade the combat systems, maintenance procedure trainers, and team trainers located there. The company is the original equipment manufacturer of the combat systems for the Halifax Class and is the in-service support provider for both the Halifax and Iroquois Class vessels.

About Telephonics
A subsidiary of Griffon Corporation, Telephonics' high-technology engineering and manufacturing capabilities provide integrated information, communication and sensor system solutions to military and commercial markets worldwide. Telephonics specializes in aircraft intercommunication systems, wireless communication systems, radars, identification friend or foe products, integrated security systems, air traffic management systems, aerospace electronics, and the performance of threat and radar system analyses.

About Griffon Corporation
Griffon Corporation is a diversified manufacturing company headquartered in Jericho, NY with operations in three business segments: Garage Doors; Specialty Plastic Films; and Electronic Information and Communication Systems.

Forward-Looking Statements
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Certain statements other than statements of historical fact included in this release are forward-looking statements. Such forward-looking statements are based on the beliefs of the company's management, as well as assumptions made by and information currently available to the company's management. Actual results could differ materially from those contemplated by the forward-looking statements. Information concerning risks and uncertainties that may impact the company's results and forward-looking statements are set forth in the company's filings with the SEC. The company does not undertake to release publicly any revisions to these forward-looking statements to reflect future events or circumstances or to reflect the occurrence of unanticipated events.