Sarnoff Awarded $12 Million Contract Renewal for Design and Production of Replacement Integrated Circuits; Sarnoff Team Builds Upon Two Decades of Delivering Quality Reliable Components to Support the Warfighter

PRINCETON, N.J.--July 10, 2006--Sarnoff Corporation announced today a $12 million contract renewal with the Defense Logistics Agency (DLA) and the Defense Supply Center Columbus (DSCC) to continue research and development (R&D) and production of military quality microcircuits for equipment used by all branches of the U.S. Armed Forces. For this contract, Sarnoff will design and produce replacements for Integrated Circuits (IC) that are no longer in production by original manufacturers, but required for the operation of military systems.

For nearly 20 years, the Emulation Products and Technology division of Sarnoff has operated under the Generalized Emulation of Microcircuits (GEM) program, developed in partnership with DLA and DSCC as a supply solution for microcircuits in the Diminishing Manufacturer Sources and Material Shortages (DMSMS) market.

To address growing DMS issues caused by rapid advancement in IC technology, DLA is developing the next generation of microcircuit emulation capability through the Advanced Microcircuit Emulation (AME) program.

"The contract awards speak to Sarnoff's unwavering commitment to research, development and production of the highest quality parts for military platforms that are in production, sustainment or nearing the retirement phase of their life-cycle," said Jim Hengle, Sarnoff's managing director of Emulation Products and Technology. "We will continue to deliver on-demand, cost-effective products that adhere to the most demanding safety and performance requirements."

An example of a system that has benefited from the GEM program includes equipment such as the M2/M3 Bradley Fighting Vehicle. GEM provided more than 8,000 microcircuits for the turret control system, which enhances safety when operating with open hatches. The microcircuits were required for the Bradley Fighting Vehicles prior to being mobilized in Operation Iraqi Freedom.

New programs also use GEM components for low-volume, but time-critical production runs. Recently, the F-22 Raptor advanced tactical fighter aircraft used the GEM program for a limited order of ejector seat circuitry.

Sarnoff designs and manufactures GEM parts in its onsite DSCC Qualified Manufacturers Listing (QML) certified semiconductor foundry, allowing Sarnoff to support requirements through the system lifecycles. From initial production requirements through end-of-life sustainment needs, Sarnoff provides long-term availability and a continuing source of supply long after other sources have exhausted their inventories or discontinued manufacture. The added flexibility alleviates uncertainties associated with over- or under-procuring during Last Time Buys.

"The GEM program has provided DLA with procurement and inventory efficiency by providing only what it needs, and when it is needed to help keep defense systems operating reliably," said David Robinson, DSCC, DMSMS, IST and Emulation program manager.

Sarnoff is scheduled to exhibit its emulation technology products at the upcoming Department of Defense Diminishing Manufacturing Sources and Material Shortages (DMSMS) conference from July 10-13 at the Charlotte Convention Center in Charlotte, N.C.

Visit Sarnoff's GEM site at: www.gemes.com for more detailed information.

About Sarnoff Corporation

Sarnoff Corporation (www.sarnoff.com) produces innovations in electronic, biomedical and information technology that generate successful new products and services for clients worldwide. Founded in 1942 as RCA Laboratories, it develops breakthroughs in ICs, lasers, and imagers; drug discovery, manufacture and delivery; digital TV and video for security, surveillance, and entertainment; high-performance networking; and wireless communications. Sarnoff is a subsidiary of SRI International.