Military SDR Technologies Demonstrates World's First Wireless Base Station with VOIP Ability

Functionality offers significant cost savings & technical advantages for 3G networks; New functionality demonstrates dynamic flexibility of SpectruCell middleware


IRVINE, Calif., Dec. 17, 2003 -- Military Communications Technologies, Inc. (OTCBB:MLTA) today announced that its partially-owned Australian affiliate, Military SDR Technologies Pty Ltd, has successfully demonstrated Voice over Internet Protocol. (VOIP) termination at a mobile wireless base-station. Military SDR's engineers terminated a CDMA call utilizing a VOIP core network over the Company's proprietary SpectruCell(r) multiple protocol software defined radio ("SDR").

Right Technology, Right Time

"This is an important step forward in the commercialization of the SpectruCell technology. Many network operators worldwide are migrating their conventional fixed core networks to an IP architecture for cost saving reasons. This is the first wireless base-station with Voice-Over-IP ability, eliminating the need for conventional network infrastructure such as fiber optic, wire, and cable, between base stations. A Voice-Over-IP SpectruCell base station can seamlessly sit on any existing Internet network," commented Mr. Kevin Graham, CEO and Director of International Business Development for Military SDR Technologies.

Mr. Roger May, Chairman of Military Communications Technologies added, "This significant technology milestone reached by our Australian affiliate further enhances our SpectruCell product and makes it all the more attractive to the North American-based defense and commercial telcos we have been in discussions with. We believe that SpectruCell's VOIP functionality is a key selling point in an industry that is increasingly turning to VOIP to meet its infrastructure upgrade needs."

No Fiber Connections For Mobile Base Stations -- World First!

The functionality demonstrated by this VOIP achievement is traditionally implemented in the Base Station Controller ("BSC") and offers significant cost savings and technical advantages to network operators rolling out 3G networks. Military SDR's Melbourne-based engineering team has extended the functionality of SpectruCell's software defined CDMA base-station application by including a VOIP codec in the base-station. This allows a commercial IS95 (CDMA) handset to establish a phone call to a VOIP equipped base-station. The engineering team delivered this milestone as demonstration of the dynamic flexibility of the SpectruCell middleware to add and control new software modules and to establish new data/voice channels without the need for major re-engineering of the software application or hardware platform. The original VOIP functionality was first demonstrated in January 2003.

Currently, network providers are beginning the migration to 3G high-speed data networks. The number and concentration of cell sites required increases dramatically to 3 to 4 times the number of cells required for a current mobile network architecture. A major hurdle in roll out these new 3G networks has been the issue of how to connect all of these new base stations to the rest of the network with conventional fiber/wire infrastructure. Traditional mobile network architecture, as dictated by the usual Mobile Switching Center and BSC structure, does not provide any flexibility and is dramatically more expensive to establish and maintain, than an Internet (IP) connection wireless solution. By using an IP connection instead of the traditional approach network operators can further utilize existing dark fiber and other traditional transmission infrastructure to provide a full, flexible, and cost effective total digital wireless solution as they implement the migration to high speed 3G networks. This milestone shows that it is now possible to terminate data and voice connections directly to a base-station via VOIP. Many major network operators worldwide have recognized the flexibility and cost savings of a core IP network and are redeploying their conventional core infrastructure in this fashion. The implantation of VOIP in the SpectruCell suite of technologies brings this cost effective and flexible VOIP migration into the mobile wireless network realm for the first time.

About Military Communications Technologies

Military Communications Technologies, Inc. is a technology company involved in the development and distribution of proprietary software defined radio (SDR) commercial and military mobile wireless network applications. The Company's core product, PC4 is specifically targeted to the demands of the Military and Homeland Defense agencies for large-scale defense grade reconfigurable wireless communications systems. PC4, which stands for Programmable, Command, Control, Compute, and Communicate, is a next-generation SDR framework and proprietary operating system uniquely designed for interoperable, lightweight and mobile military communications systems. The PC4 framework is also especially suitable for radar and high-speed digital RF and GSM surveillance systems. The Company's proprietary SpectruCell(tm) technology offers commercial wireless providers a cost-effective, software-based method to upgrade systems to next-generation standards and makes networks interoperable with most wireless protocols.

Statements in this release, which relate to other than strictly historical facts, including statements about the Company's plans and strategies, as well as management's expectations and new and existing products, technologies and opportunities, market growth, demand for acceptance of new and existing products, are forward-looking statements. The words, "believe," "expect," "anticipate," "estimate," "project," and similar expressions identify forward-looking statements that speak only as the date hereof. This press release contains certain forward-looking statements regarding Military Communications Technologies, Inc. ("MLTA"), its business prospects and results of operations that are subject to certain risks and uncertainties posed by many factors and events that could cause MLTA's actual business, prospects and results of operations to differ materiality from those that may be anticipated by such forward-looking statements. Readers are urged to carefully review and consider the various disclosures made by MLTA in this news release and other reports filed with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect MLTA's business.



            

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