Rancho Santa Margarita, CA -- February 15, 2005 - Palomar Products, Inc. today announced that it has been awarded the contract to develop the Intercommunications Systems (ICS) for the U.S. Navy Multi-mission Aircraft (MMA) P-8 program from Boeing Integrated Defense Systems.

The new MMA ICS is a derivative of the systems being delivered for the Boeing 737 AEW&C airplanes. Palomar Products has been supplying secure Intercommunications systems to Boeing for AWACS and other airplanes since the 1970s, when the organization was part of Hughes Aircraft Company. In anticipation of the increasing demand requiring sophisticated digital communications capabilities, Palomar Products has developed a state-of-the-art audio / data distribution system - using the latest digital signal processing and networking technology. Val Policky, Palomar Products' President, stated: "We are very pleased with this award. Palomar's forecasted production orders for this platform are very significant in future years and it is gratifying to know that after three decades of being an award winning supplier to Boeing that we will be able to continue in the decades ahead." signal processing and networking technology. Val Policky, Palomar Products' President, stated: "This is a very important program for our company. The future production potential for this platform is significant."

"Palomar's legacy secure ICS, long recognized as an industry standard, complemented by our new digital system allows me to offer customers throughout the world fully compliant solutions to meet their secure communications needs", states Bob Lawson, Marketing Director of Palomar Products, Inc..

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.

A unit of The Boeing Company, Boeing Integrated Defense Systems is one of the world's largest space and defense businesses. Headquartered in St. Louis, Boeing Integrated Defense Systems is a $27 billion business. It provides network-centric system solutions to its global military, government, and commercial customers. It is a leading provider of intelligence, surveillance and reconnaissance systems; the world's largest military aircraft manufacturer; the world's largest satellite manufacturer and a leading provider of space-based communications; the primary systems integrator for U.S. missile defense and Department of Homeland Security; NASA's largest contractor; and a global leader in launch services.

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