October 11, 2004
Contacts: Joel Littman
Communications & Power Industries, Inc.
COMMUNICATIONS & POWER INDUSTRIES COMPLETES ACQUISITION OF ECONCO
PALO ALTO, CA, AND WOODLAND, CA; OCTOBER 11, 2004 - Communications & Power
Industries, Inc. (CPI) today announced that it has completed its previously
announced acquisition of ECONCO Broadcast Service, Inc.
ECONCO is the world's leading provider of rebuilding services for vacuum
electron devices (VEDs), allowing broadcasters and other users of these critical
products to extend the life of their devices, at a cost that is lower than
buying a complete new VED. ECONCO was established in 1968, and in the
intervening 37 years has developed methods for rebuilding a vast array of VEDs
manufactured by most of the leading VED OEMs. ECONCO serves over 10,000
customers from all corners of the globe.
CPI is the nation's leading provider of vacuum electron devices (VEDs),
satellite communications amplifiers, medical imaging generators, and other
related equipment for defense and commercial applications. Since the founding of
its predecessor company (Varian) in the 1940s, CPI has established its
leadership position in VEDs, providing products and technology critical to
state-of-the-art defense, medical, communications, industrial and scientific
Headquartered in Palo Alto, CA, CPI's operations fall within five divisions:
Microwave Power Products, Satcom, Communications & Medical Products, EIMAC, and
Beverly Microwave Products. CPI maintains manufacturing facilities in the east
and west coasts of the United States, as well as Canada, and has a worldwide
sales, marketing and service network.
Communications & Power Industries, Inc. is a world leader in the development,
manufacture and distribution of products for systems used to generate, amplify
transmit high-power/ high-frequency microwave and radio frequency signals.
End-use applications of these systems include the transmission of radar signals
for navigation and location; transmission of false signals for electronic
countermeasures; and transmission and amplification of voice, data and video
signals for terrestrial and satellite broadcasting, internet and
telecommunications. CPI's products are also used in cancer therapy, medical
imaging, industrial processes, and high energy accelerators for scientific
The Cypress Group L.L.C., along with senior management, acquired CPI in January
2004, with a stated interest in stimulating internally generated growth, as well
as growth through carefully chosen acquisitions. ECONCO is the first such
acquisition. This acquisition was funded from internally generated funds, and
did not require an increase or drawdown of any of CPI's borrowing facilities.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: Statements in this press release regarding CPI's business which are not
historical facts are "forward-looking statements" that involve risks and
uncertainties. For a discussion of such risks and uncertainties, which could
cause actual results to differ from those contained in the forward-looking
statements, see "Risk Factors" in our Form 10-K for the most recently ended