Griffon Unit Acquires The Systems Engineering Group

Telephonics expands research, development, and professional support and services capabilities

3/9/2005  - 

Telephonics Corporation, a wholly owned subsidiary of the Griffon Corporation (NYSE: GFF), announced today that it has purchased The Systems Engineering Group (SEG), headquartered in Columbia, Maryland. SEG, with sales in excess of $8 million in 2004, will be operated as a wholly owned subsidiary of Telephonics Corporation and will remain within its existing facilities in Columbia, Maryland, Dahlgren, Virginia and Moorestown, New Jersey.

SEG’s capabilities include radar systems analysis, antenna systems engineering, sonar analysis and processing, high fidelity threat missile modeling, analysis and simulation, tactical missile defense analysis, and federal aviation administration support. SEG’s customer base includes amongst others: The United States Navy, The FAA, Johns Hopkins University - APL, Missile Defense Agency and the Veterans Administration.

"This acquisition will enhance Telephonics’ core business of providing electronic systems and sub-systems for critical defense applications by expanding the research and development and professional support services we offer our customers. We are very excited about combining SEG’s systems analysis, simulation and modeling expertise with Telephonics’ existing product lines", said Joseph J. Battaglia, President of Telephonics Corporation.

About Telephonics Corporation

A subsidiary of Griffon Corporation (NYSE: GFF), Telephonics' (www.telephonics.com) broad based, high-tech engineering capabilities provide integrated information and communication systems solutions to both domestic and international markets. The company is organized into two operating divisions: Communications Systems, specializing in aircraft intercommunications, mass transit communications, wireless and audio products; and Command Systems, specializing in traffic management systems, maritime surveillance radar and aerospace electronics; and one wholly-owned subsidiary, TLSI. Operating under the Telephonics umbrella, TLSI (www.tlsi.com) manufactures application-specific integrated circuits (ASIC) for the telecommunications, automotive and industrial security markets.

In addition to developing and manufacturing information and communication systems for government and commercial markets worldwide, Griffon Corporation is also a leader in the development and production of embossed and laminated specialty plastic films used in the baby diaper, feminine napkin, adult incontinent, surgical and patient care markets. Griffon Corporation is also a leading manufacturer and marketer of residential, commercial and industrial garage doors sold to professional installing dealers and major home center retail chains. Through a substantial network of operations located throughout the country, Griffon’s building products company also installs and services specialty building products, primarily garage doors, openers, fireplaces and cabinets for new construction markets.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: All statements other than statements of historical fact included in this release, including without limitation statements regarding the company's financial position, business strategy and the plans and objectives of the company's management for future operations, are forward-looking statements. When used in this release, words such as anticipate,believe, estimate, expect, intend, and similar expressions, as they relate to the company or its management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of the company's management, as well as assumptions made by and information currently available to the company's management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including but not limited to, business and economic conditions, competitive factors and pricing pressures, capacity and supply constraints. Such statements reflect the views of the company with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the company. Readers are cautioned not to place undue reliance on these forward-looking statements. The company does not undertake to release publicly any revisions to these forward-looking statements to reflect future events or circumstances or to reflect the occurrence of unanticipated events.

© 2005 Telephonics Corporation. 815 Broad Hollow Road, Farmingdale, NY 11735. All trademarks, trade names, service marks, and logos referenced herein belong to their respective companies.