Stratex Networks Stockholders Approve Combination and Merger With Microwave Communications Division of Harris Corporation

Merger Creates Harris Stratex Networks, Largest Independent Provider of Wireless Transmission Network Solutions 


SAN JOSE, Calif., Jan. 25  /PRNewswire-FirstCall/ -- Stratex Networks (NASDAQ:STXN), announced that at today's special stockholders meeting, the stockholders of Stratex Networks, Inc. approved the combination with Harris Corporation's Microwave Communications Division and the other transactions contemplated by the Formation, Contribution and Merger Agreement previously entered into with Harris.  Voting in favor of the merger represented 99.4 percent of total shares voted and 69.7 percent of total shares outstanding. An affirmative vote of a majority of the outstanding shares of Stratex Networks common stock was required for the adoption of the combination agreement and approval of the transaction, which was announced on September 5, 2006.

"We appreciate the support of our stockholders as we take this next significant step in the development of our business.  Several years ago, we began the process of using innovation in products, channels, and business structure to dramatically advance our position and value.  Combining two industry leaders, Stratex Networks and the Microwave Communications Division of Harris, enhances that capability even more as we create a new enterprise with the scale and product leadership to provide increased value to all of our stakeholders," said Chuck Kissner, Chairman of Stratex Networks.  "The leadership team of Harris Stratex Networks will hit the ground running to execute on plans to expand our presence in the wireless transmission market worldwide, to provide innovative products and services to our customers, and to deliver strong financial performance.  As we move forward, I want to specifically thank the employees of Stratex Networks for their tremendous accomplishments that enabled us to take this momentous step."

Transaction Details

On September 5, 2006 Stratex Networks and Harris Corporation entered into a definitive agreement to combine the operations of Stratex Networks and the Microwave Communications Division of Harris to form a new company.  Under terms of the agreement, Harris Corporation will contribute its Microwave Communications Division, along with a specified cash amount.  Following the closing, Harris Corporation will own approximately 56 percent of the combined company.  Stratex Networks shareholders will exchange their existing stock on a tax-free basis for approximately 44 percent ownership in the combined company.  Concurrent with the close of the transaction, each share of outstanding Stratex Networks common stock will be converted into one-fourth of a share of Harris Stratex Networks class A common stock.  After the issuance of new shares to Harris Corporation in exchange for its Microwave Communications Division and cash, shares outstanding for Harris Stratex Networks will be approximately 58 million.   Harris Stratex Networks will have a fiscal year ending June 30.

The closing of the transaction is expected to be completed on Friday, January 26, 2007.

About Stratex Networks

Stratex Networks, Inc. is one of the world's leading providers of high-speed wireless transmission solutions.  Since it was founded in 1984, Stratex Networks has achieved international recognition for quality, innovation, and technical superiority in delivering data, voice, and video communication systems, including comprehensive service and support.  Stratex Networks, with its broad product offering and worldwide sales and support organization, is strategically positioned to serve its customers' needs in wireless, high-capacity transmission technology. 

DATASOURCE: Stratex Networks, Inc.



CONTACT:  Mary McGowan of Summit IR Group Inc., [phone], or

, for Stratex Networks, Inc.



Web site:  http://www.stratexnet.com/

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