Rancho Santa Margarita, CA -- June 24, 2002 - Palomar Products, Inc. announced today that Thales Systems Canada has selected them to provide the Intercommunications Systems (ICS) for the Canadian CP140 Aurora Communications Management System (CMS) program.

Val Policky, Palomar Products' President, stated: "This is a very important program for our company. It represents a continuation of a long series of successful ICS programs for Palomar. We are anxious to add Thales to our long list of satisfied and dedicated customers."

The CP140 Aurora is a long-range maritime patrol aircraft. Eighteen CP140 Auroras are operated by the Canadian Forces for ASW, maritime surveillance, counter-drug, and search and rescue missions.

The CMS contract is part of the Canadian Department of National Defence (DND) Aurora Incremental Modernization Program (AIMP) in which many of the aircraft mission and avionics systems, along with the ground-based support systems, will be modernized.

Palomar Products, Inc. is a leading developer and manufacturer of secure audio and data distribution systems for military airborne and ground-based applications. Located in Rancho Santa Margarita, California, Palomar has provided TEMPEST qualified systems to customers throughout the world for over 30 years.

Thales is one of the world's largest defense electronics companies. The Thales Group employs 65,000 persons worldwide and has annual revenues of $9 billion (USD). In Canada, Thales has seven operating companies located in the Maritimes, Quebec, and Ontario.

Contact:
Palomar Products
Bob Lawson
Marketing Director
Voice (949) 766-5434
FAX (949) 766-5353
E-mail: rlawson@palpro.com