Raytheon Awards Follow-On Production Contract to Salvador Imaging, a Photon Dynamics Company

Salvador Imaging Receives Follow-On Production Contract for High-Resolution Surveillance Cameras for High-Profile Imaging Platform 


SAN JOSE, Calif., May 28  /PRNewswire-FirstCall/ -- Photon Dynamics, Inc. (NASDAQ:PHTN), today announced Raytheon Company (NYSE:RTN) has awarded a follow-on production contract to its wholly owned subsidiary Salvador Imaging, Inc. to continue supplying high-performance surveillance cameras for a combat- proven, multi-use imaging system. The contract marks Raytheon's second order for Salvador Imaging's high-resolution surveillance camera products, and represents a continuing relationship as a key supplier to Raytheon's high-end imaging platforms. The recent production contract will result in the delivery of roughly 100 additional imaging systems to Raytheon during 2008.

The surveillance system manufactured at Raytheon Space and Airborne Systems' (SAS) facility in McKinney, Texas offers sophisticated operational modes used for reconnaissance and tactical missions. Raytheon's surveillance system supports a variety of domestic and international rotary-wing, unmanned airborne systems, and fixed-wing platforms.

"We are very excited to receive the follow-on contract and to be selected as a preferred supplier to Raytheon for this high-end imaging platform," said David Gardner, president of Salvador Imaging. "We attribute the follow-on contract to the quality of product delivered over the past several months and our strong commitment to working closely with Raytheon."

Photon Dynamics' President and Chief Executive Officer, Jeffrey Hawthorne said, "Raytheon's follow-on contract for Salvador Imaging's cameras further attests to the execution of our strategy to leverage our core imaging and manufacturing knowledge into market opportunities beyond flat panel displays. We are committed to supporting Raytheon's expanding position in the large and growing global market for intelligence, surveillance and reconnaissance systems by providing the most advanced technology and full-cycle customer support."

About Photon Dynamics, Inc.

Photon Dynamics, Inc. (NASDAQ:PHTN) is a global supplier utilizing advanced digital imaging technology for market leading Liquid Crystal Display (LCD) flat panel display test and repair systems and for high performance digital imaging systems for defense, surveillance, industrial inspection and medical imaging applications.  For more information about Photon Dynamics, visit its website at http://www.photondynamics.com/.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995

This release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as PDI or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. Similarly, statements in this release that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements. These forward-looking statements are based on current expectations on the date of this press release and involve a number of uncertainties and risks including but not limited to: Our ability to sustain profitability through our outsourcing strategies, execution of our diversification strategy may not succeed, and  those risks and uncertainties described in the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations" under the caption "Factors Affecting Operating Results" in Photon Dynamics' Annual Report on Form 10-K for the year ended September 30, 2007 and the Quarterly Report on Form 10-Q for the quarter ended December 31, 2007 as filed with the Securities and Exchange Commission. As a result, actual results may differ substantially from expectations. Photon Dynamics undertakes no obligation to update or revise any forward-looking statements, whether as a result of new developments or otherwise. 

DATASOURCE: Photon Dynamics, Inc.



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