Comtech Urges Stockholders to Vote Today on the BLUE Proxy Card for All of Comtech’s Nominees

MELVILLE, N.Y. –
December 13, 2021– Comtech Telecommunications Corp. (NASDAQ: CMTL), a leading global provider of next-generation 911 emergency systems and secure wireless communications technologies, today issued the below letter to shareholders reiterating its recommendation to vote the BLUE proxy card FOR Comtech’s highly qualified director nominees, Judy Chambers and Larry Waldman.

The full text of the letter follows:

PROTECT THE VALUE OF YOUR INVESTMENT BY VOTING THE ENCLOSED BLUE PROXY CARD TODAY FOR COMTECH’S HIGHLY QUALIFIED DIRECTORS

Dear Fellow Shareholder:

We are rapidly approaching the December 17 Annual Meeting and your vote is extremely important to Comtech’s future.

Our Board and management team, including our director nominees, Judy Chambers and Larry Waldman, are executing a highly successful, targeted strategy that is delivering results for shareholders. Our current Board has the right mix of skills, experience, diversity, and viewpoints to deliver on its strategy to create even greater shareholder value going forward.

In contrast, Outerbridge Capital Management has nominated two director candidates who lack the skills and experience necessary to create shareholder value and provide sound corporate governance. Indeed, only one of their candidates has relevant industry experience; however, he would threaten a number of our customer relationships – and our commercial success – given his position on the board of one of their competitors.

We urge you to vote the BLUE proxy card today for Comtech’s highly qualified director nominees and ignore any White proxy card you may receive from Outerbridge, considering the following:

Comtech has taken and continues to take transformative actions to enhance its leadership position in attractive growth markets and accelerate growth and profitability:

• Executed a thoughtful M&A strategy to reorient Comtech’s portfolio around two high-growth end markets – satellite communications and 911 public safety – that are at the beginning of a sustained investment and renewal cycle expected to persist for years.

• Drove significant new business wins across segments, including $200 million in multi-year next-generation 911 contracts and a new, large multi-year satellite technology contract with strong potential to generate hundreds of millions of dollars in incremental revenue over the next several years.

• Delivered five-year total shareholder returns of 126.7%, outperforming the S&P 600, which returned 99.7%, the NASDAQ Telecommunications Index, which returned 87.5%, and the appropriate peer set, who returned 36.7%.¹

• Secured a $100 million investment from current stockholder White Hat Capital Partners, LP and Magnetar Capital LLC, more than doubling Comtech’s accessible capital given limitations under existing credit facilities. The proceeds of this investment will fund Comtech’s next phase of growth, including additional capital investments to service recent contract wins across our next-generation 911 and satellite communications markets as well as attractive M&A opportunities.

• Completed a multiyear succession process with the announcement of new CEO Mike Porcelain, empowering the right leader with the operational and executional expertise necessary to drive Comtech’s next phase of growth forward. Armed with new oversight and new capital, Comtech is poised to capitalize on a generational tech-renewal cycle in its core satellite communications and next-generation 911 markets.

Comtech has refreshed its Board, and its nominees bring the right skills and experience to continue creating shareholder value:

• The Board accelerated a deliberate director refreshment process first initiated in 2015 that resulted in the appointment of four qualified new directors, the planned retirement of three longstanding directors, completion of a multi-year succession planning process, and Board declassification as part of the Company’s commitment to strong governance.

• Judy Chambers was appointed to our Board in August 2021 following a multi-month evaluation process, adding extensive experience interfacing with regulatory authorities as it relates to major infrastructure projects, addressing the interests and concerns of institutional investors, and providing fresh perspectives and leadership for ESG initiatives.

• Larry Waldman’s 35-plus years of experience in accounting, auditing, and internal controls provide our Board critical expertise in complex global accounting. He has been instrumental in transforming Comtech into an industry leader in NextGen 911 and satellite ground station technologies and continues to be critical to the Company’s long-term success. Since Mr. Waldman joined the Board in 2015, Comtech’s annual revenues have grown from $307 million to $582 million.

Outerbridge does not understand our business and its candidates are unqualified to oversee Comtech’s strategic plan:

• Outerbridge has no value creation plan beyond writing public letters riddled with inaccuracies and misleading, unsubstantiated claims, seemingly to divert attention from significant flaws in its candidates.

• Sidney Fuchs’ role as Chairman of Eutelsat America Corp., a major competitor to several of our largest customers, presents a material and irreducible conflict of interest. On this topic, the only relevant opinions are those of Comtech’s key customers, a number of whom have already reached out to us to express grave concerns about their continued relationship with Comtech should Fuchs join our Board. This perception is not addressable through an Organizational Conflict of Interest (“OCI”) mitigation plan as Outerbridge has suggested. And assurances from Eutelsat’s General Counsel do nothing to assuage the concerns of Comtech’s customers. We reiterate, Mr. Fuchs’ election would significantly damage key customer relationships and negatively affect prospective business opportunities.

• Wendi Carpenter does not bring any relevant experience to Comtech’s business – whether industry, technical, financial, accounting, M&A, or for-profit operational – and has no prior background in our core markets. She sits on the Board of only one company, SkyWater Technology, whose share price fell 36% following disappointing third quarter earnings and whose principal accounting officer resigned without explanation.

In contrast, Comtech has a clear plan to create even more value for shareholders, including:

• Capitalizing on multi-year investment cycles across end markets: Executing on our $1.2 billion plus of revenue visibility as well as our new contract for customized next-generation satellite technology;

• Investing for growth: Committing more than $30 million in capital investments to complete the build-out of two new, state-of-the-art production facilities and deploying our recent $100 million strategic investment towards additional growth opportunities, including acquisitions;

• Increasing companywide collaboration: Leveraging our satellite relationships to further expand international penetration of our public safety trusted location product and to exploit additional emerging opportunities such as cyber training for state and local 911 agencies;

• Expanding our talent pool: Making strategic hires in key areas, such as bringing onboard a new Chief Operating Officer to further increase operating efficiency and Head of Investor Relations to enhance our communications with the investment community;

• Modernizing corporate branding: Consolidating multiple websites to maximize “Comtech” name brand awareness, refreshing our investor relations website, and expanding our social media presence; and

• Optimizing segment reporting structure: Finalizing our Board’s assessment of our segment reporting to highlight the value of our unique portfolio and revisiting non-GAAP reporting metrics.

We urge you to support your Board by using the enclosed BLUE proxy card to vote today FOR Comtech’s two highly qualified director nominees, Judy Chambers and Larry Waldman. Please do not return or otherwise vote using any White proxy card you may receive from Outerbridge.

Thank you for your support,

Board of Directors

Comtech Telecommunications Corp.

Acerca de Comtech

Comtech Telecommunications Corp. es un proveedor líder mundial de sistemas de emergencia 911 de última generación y tecnologías de comunicación inalámbrica segura para clientes comerciales y gubernamentales de todo el mundo. Con sede en Melville (Nueva York) y una gran pasión por el éxito de sus clientes, Comtech diseña, produce y comercializa soluciones inalámbricas avanzadas y seguras. Para más información, visite www.comtechtel.com.

Declaraciones prospectivas

Determinada información contenida en esta carta contiene afirmaciones de carácter prospectivo y entraña ciertos riesgos e incertidumbres significativos, como los relativos a nuestra trayectoria empresarial, los ingresos y ventas futuros, la estrategia de adquisiciones, los cambios en la dirección y la gestión, y el crecimiento. Los resultados reales podrían diferir materialmente de dicha información prospectiva. Los riesgos e incertidumbres que podrían afectar a estas declaraciones prospectivas incluyen: la posibilidad de que las sinergias y beneficios esperados de las recientes adquisiciones no se materialicen plenamente, o no se materialicen en los plazos previstos; el riesgo de que los negocios adquiridos no se integren con éxito en la Sociedad; la posibilidad de que las recientes adquisiciones provoquen trastornos que dificulten el mantenimiento de las relaciones comerciales y operativas o la retención del personal clave; el riesgo de que la empresa no consiga llevar a cabo un cambio táctico en su segmento de Soluciones Gubernamentales y deje de licitar para grandes contratos de servicios básicos en favor de contratos para sus productos nicho con márgenes más elevados; la naturaleza y el calendario de la recepción de pedidos nuevos o existentes y el rendimiento de la empresa en los mismos, que pueden causar fluctuaciones significativas en las ventas netas y los resultados operativos; el calendario y la financiación de los contratos gubernamentales; los ajustes de los beneficios brutos de los contratos a largo plazo; los riesgos asociados a las ventas internacionales; los rápidos cambios tecnológicos; la evolución de las normas del sector; los anuncios y mejoras de nuevos productos; los cambios en las demandas de los clientes y/o en las estrategias de adquisición; los cambios en las condiciones económicas y políticas imperantes; los cambios en el precio del petróleo en los mercados mundiales; los cambios en los tipos de cambio de divisas; los riesgos asociados a los procedimientos legales de la empresa, las demandas de indemnización de los clientes y otros asuntos similares; los riesgos asociados a las obligaciones de la empresa en virtud de su línea de crédito; los riesgos asociados a los grandes contratos de la empresa; los riesgos asociados a la pandemia COVID-19 y las interrupciones de la cadena de suministro relacionadas; y otros factores descritos en este documento y en otros documentos presentados por la empresa ante la Comisión del Mercado de Valores. No asumimos ninguna obligación ni tenemos intención de actualizar estas declaraciones prospectivas ni de ajustarlas a los resultados reales o a los cambios en nuestras expectativas.

Información adicional y dónde encontrarla

Comtech ha presentado ante la Securities and Exchange Commission ("SEC") y ha enviado por correo a los accionistas de la empresa una declaración de representación definitiva, un informe adjunto y un folleto informativo. AZUL y otros documentos relevantes en relación con la Junta Anual de Accionistas de la Sociedad para el ejercicio fiscal 2021 (la "Junta Anual 2021"). SE INSTA A LOS ACCIONISTAS DE LA SOCIEDAD A QUE LEAN LA DECLARACIÓN DE REPRESENTACIÓN, LA TARJETA DE REPRESENTACIÓN AZUL Y CUALESQUIERA OTROS DOCUMENTOS QUE SE PRESENTEN ANTE LA SEC EN RELACIÓN CON LA JUNTA ANUAL DE 2021 DE LA SOCIEDAD O QUE SE INCORPOREN POR REFERENCIA A LA DECLARACIÓN DE REPRESENTACIÓN, YA QUE CONTENDRÁN INFORMACIÓN IMPORTANTE SOBRE LA JUNTA ANUAL DE 2021 DE LA SOCIEDAD Y LAS PARTES RELACIONADAS CON LA MISMA. Los accionistas de la empresa pueden obtener una copia gratuita de los documentos presentados ante la SEC en el sitio web de la SEC en https://www.sec.gov o en el sitio web de la empresa en www.ComtechCreates.com.

Participantes en la convocatoria

La Sociedad, sus consejeros y algunos de sus directivos son, y algunos otros miembros de la dirección y empleados de la Sociedad pueden ser considerados, "participantes" en la solicitud de poderes a los accionistas en relación con los asuntos que se considerarán en la Junta Anual de 2021. La información relativa a los intereses directos e indirectos, por tenencia de valores o de otro modo, en la Sociedad de las personas que son o pueden ser, en virtud de las normas de la SEC, consideradas participantes en la solicitud a los accionistas de la Sociedad en relación con la Junta Anual de 2021 de la Sociedad se establece en la declaración de representación definitiva de la Sociedad presentada en relación con la Junta Anual de 2021 de la Sociedad y en otros documentos pertinentes presentados ante la SEC. También puede encontrar información sobre los directivos y consejeros ejecutivos de la Empresa en el Informe Anual de la Empresa en el Formulario 10-K para el ejercicio fiscal finalizado el 31 de julio de 2021, los demás documentos presentados por la Empresa y dichas personas ante la SEC.

PCMTL

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1</sup> Source: Bloomberg market data as of October 29, 2021. Peers selected are global communications solutions and services providers with both commercial and government customers; limited to entities with market capitalization under $10 billion. Selected peers consist of Elbit, Gilat, KVH Industries, ST Engineering, and Viasat. Total stockholder returns assume dividends are reinvested at the risk free rate.

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