Communications & Power Industries, Inc. (CPI), a subsidiary of CPI International, Inc., a leading provider of microwave, radio frequency, power and control solutions for critical defense, communications, medical, scientific and other applications, has been selected by Raytheon Company and awarded an initial contract of more than $1 million to support the pre-production phase of the U.S. Navy's Multiband Terminal (NMT) program.

Through a competitive-bidding process, Raytheon Network Centric Systems selected CPI's high-power X-band SuperLinear™ traveling wave tube amplifier for the NMT military satellite communications (satcom) program. If all option years' production and spares are exercised, CPI expects the total cumulative value of the approximately four-year program to be in excess of $20 million.

Under a contract from the U.S. Navy, Raytheon Network Centric Systems developed and supports the NMT advanced satcom system, consisting of shipboard and shore-based communication terminals for the transformational communications component of the U.S. Navy's FORCEnet architecture. The NMT solution, which is expected to provide the next generation of satcom systems, replacing several existing satcom systems, adds significant new maritime communications capability to ships, submarines and shore stations.

"We are delighted by Raytheon's selection of CPI high-power amplifiers to support such a critical military satcom program," said Joe Caldarelli, chief executive officer of CPI. "CPI's high-power SuperLinear traveling wave tube amplifier provides exceptional power efficiency, extremely long life and advanced control and monitor capabilities while operating in a rugged environment, and we are proud to provide this advanced, state-of-the-art technology for the U.S. Navy's Multiband Terminals."

CPI's Satcom Division and Microwave Power Products Division will perform work on this contract. CPI expects to make the first shipments under this contract in the first half of fiscal 2009.

About CPI International, Inc.

CPI International, Inc., headquartered in Palo Alto, California, is the parent company of Communications & Power Industries, Inc., a leading provider of microwave, radio frequency, power and control solutions for critical defense, communications, medical, scientific and other applications. Communications & Power Industries, Inc. develops, manufactures and distributes products used to generate, amplify, transmit and receive high-power/high-frequency microwave and radio frequency signals and/or provide power and control for various applications.

End-use applications of these systems include the transmission of radar signals for navigation and location; transmission of deception signals for electronic countermeasures; transmission and amplification of voice, data and video signals for broadcasting, Internet and other types of commercial and military communications; providing power and control for medical diagnostic imaging; and generating microwave energy for radiation therapy in the treatment of cancer and for various industrial and scientific applications. For more information, visit www.cpii.com.