EMS Technologies Writes Down NetSat-Related Assets in 2000 Financial Results

Charge Eliminates Balance Sheet Risk for Satellite Program and

Has No Effect on Earnings Expectations for 2001



Apr 17, 2001, 01:00 ET from EMS Technologies, Inc.

    ATLANTA, April 17 /PRNewswire/ -- EMS Technologies, Inc. (Nasdaq:   ELMG)
 today announced that it was writing down $2.9 million of receivables and
 inventory as of December 31, 2000, relating to the NetSat satellite
 communications initiative.
     In late 1999, EMS began supporting the NetSat initiative to offer
 broadband satellite communications services via a high-capacity geostationary
 satellite over the United States.  As a result of financing arrangements with
 a large investment firm, the Company had previously expected that the NetSat
 initiative would proceed on a timely basis and that the Company's assets would
 be fully realized.  However, due to recent changes in capital markets,
 NetSat's potential financing arrangements could not be completed prior to the
 issuance of EMS's financial statements for the year 2000.
     Excluding the NetSat charge, the Company's results of operations were
 unchanged from the previously announced results; however, with the NetSat
 charge, the Company's reported earnings for the year were $4.5 million, or
 $.50 per share for the year, as compared with previously announced earnings of
 $6.3 million, or $.71 per share.
     Alfred G. Hansen, president and chief executive officer, commented, "It is
 most important to note that the write-down of NetSat assets in the fourth
 quarter was unrelated to the Company's underlying performance in that period,
 when we had very good results across the board in all major business areas.
 The write down has also had no effect on our earnings expectations for 2001,
 either for the first quarter or the full year.  We still believe that our
 operating income for 2001 can reflect 35% growth over the $12.8 million
 originally reported for 2000.
     "We are disappointed, of course, that the anticipated initial financing
 for the NetSat initiative has not yet been completed.  But we are now
 optimistic about the outcome of the application pending before the FCC to
 reinstate the NetSat license, and also about the current status of
 arrangements with a major strategic partner.  We believe that the work that
 EMS has devoted to NetSat will ultimately be a valuable asset in the Company's
 future, and will complement the broadband work that we are already doing with
 SES Astra and others."
 
     EMS Technologies, Inc. is a leading provider of technology solutions to
 wireless and satellite markets.  The Company focuses on mobile information
 users, and increasingly on broadband applications.  The Company is
 headquartered in Atlanta, employs 2,000 people worldwide, and has
 manufacturing facilities in Atlanta, Montreal, Ottawa and Brazil.
     The company's Space and Technology Group serves markets for satellite
 communications, radar and other specialized applications.
     The Wireless Products Group comprises several product lines, including:
     *  wireless networks and system integration for logistics and other
        applications,
     *  base station antennas and related products for PCS/cellular
        telecommunications, and antennas
     *  and terminals for mobile communications via satellite (SATCOM).
 
     Statements contained in this press release regarding future revenues and
 financial results, the potential for various businesses and products, and the
 schedule for, and the operation and market potential of, various product and
 market initiatives are forward-looking statements.  Actual results could
 differ from those statements as a result of a wide variety of factors.  Such
 factors include, but are not limited to...
     *  the effects of general economic conditions on capital spending in the
        Company's principal markets;
     *  successful completion of technological development programs by the
        Company and the effects of technology that may be developed by
        competitors;
     *  successful transition of products from development stages to an
        efficient manufacturing environment;
     *  customer response to new products and services, and general conditions
        in our target markets (such as logistics, PCS/cellular telephony, and
        space-based communications);
     *  the availability of financing for satellite data communications systems
        and for expansion of terrestrial PCS/cellular phone systems;
     *  the extent to which competing terrestrial systems succeed in providing
        extensive broadband Internet access on a dependable and economical
        basis;
     *  the growth rate of demand for various mobile and high-speed data
        communications services;
     *  the outcome of efforts to participate with potential strategic partners
        in offering Ka-band high-speed data communications service via
        geostationary satellite;
     *  development of successful working relationships with local business
        people and governmental officials in connection with distribution and
        manufacture of products in  foreign countries;
     *  the Company's ability to attract and retain qualified personnel,
        particularly those with key technical skills; and
     *  the availability of sufficient additional credit or other financing, on
        acceptable terms, to support the Company's expected growth.
     Additional relevant factors and risks are identified in the Company's
 Annual Report on Form 10-K for the year ended December 31, 2000.
 
                             EMS Technologies, Inc.
 
                      Consolidated Statements of Earnings
                     (In thousands, except per-share data)
 
                                             As           As
                                           Revised      Reported
                                           Dec. 31      Dec. 31     Dec. 31
                                             2000         2000        1999
 
     Net sales                             $273,143     273,143      242,414
 
     Cost of sales                          181,937     181,937      167,118
 
     Selling, general and
      administrative expenses                50,635      50,635       45,211
 
     Research and development expenses       27,735      27,735       21,816
 
     Write down of NetSat assets              2,891         ---          ---
 
       Operating income                       9,945      12,836        8,269
 
     Non-operating income, net                  175         175        1,310
 
     Interest expense                       (4,326)     (4,326)      (2,827)
 
       Earnings before income taxes           5,794       8,685        6,752
 
     Income tax (expense) benefit           (1,303)     (2,402)      (1,912)
 
       Net earnings                          $4,491       6,283        4,840
 
 
     Net earnings per share:
       Basic                                   $.51         .72          .56
 
       Diluted                                  .50         .71          .55
 
 
     Weighted average number of shares:
       Common                                 8,766       8,766        8,703
 
       Common and dilutive
        common equivalent                     8,912       8,912        8,775
 
 
     Excluding the NetSat write down, the results are unchanged from those
 previously reported.  The Company's full Annual Report on Form 10-K for the
 year ended December 31, 2000, is available through the Company's website at
 www.ems-t.com .
 
 

SOURCE EMS Technologies, Inc.
    ATLANTA, April 17 /PRNewswire/ -- EMS Technologies, Inc. (Nasdaq:   ELMG)
 today announced that it was writing down $2.9 million of receivables and
 inventory as of December 31, 2000, relating to the NetSat satellite
 communications initiative.
     In late 1999, EMS began supporting the NetSat initiative to offer
 broadband satellite communications services via a high-capacity geostationary
 satellite over the United States.  As a result of financing arrangements with
 a large investment firm, the Company had previously expected that the NetSat
 initiative would proceed on a timely basis and that the Company's assets would
 be fully realized.  However, due to recent changes in capital markets,
 NetSat's potential financing arrangements could not be completed prior to the
 issuance of EMS's financial statements for the year 2000.
     Excluding the NetSat charge, the Company's results of operations were
 unchanged from the previously announced results; however, with the NetSat
 charge, the Company's reported earnings for the year were $4.5 million, or
 $.50 per share for the year, as compared with previously announced earnings of
 $6.3 million, or $.71 per share.
     Alfred G. Hansen, president and chief executive officer, commented, "It is
 most important to note that the write-down of NetSat assets in the fourth
 quarter was unrelated to the Company's underlying performance in that period,
 when we had very good results across the board in all major business areas.
 The write down has also had no effect on our earnings expectations for 2001,
 either for the first quarter or the full year.  We still believe that our
 operating income for 2001 can reflect 35% growth over the $12.8 million
 originally reported for 2000.
     "We are disappointed, of course, that the anticipated initial financing
 for the NetSat initiative has not yet been completed.  But we are now
 optimistic about the outcome of the application pending before the FCC to
 reinstate the NetSat license, and also about the current status of
 arrangements with a major strategic partner.  We believe that the work that
 EMS has devoted to NetSat will ultimately be a valuable asset in the Company's
 future, and will complement the broadband work that we are already doing with
 SES Astra and others."
 
     EMS Technologies, Inc. is a leading provider of technology solutions to
 wireless and satellite markets.  The Company focuses on mobile information
 users, and increasingly on broadband applications.  The Company is
 headquartered in Atlanta, employs 2,000 people worldwide, and has
 manufacturing facilities in Atlanta, Montreal, Ottawa and Brazil.
     The company's Space and Technology Group serves markets for satellite
 communications, radar and other specialized applications.
     The Wireless Products Group comprises several product lines, including:
     *  wireless networks and system integration for logistics and other
        applications,
     *  base station antennas and related products for PCS/cellular
        telecommunications, and antennas
     *  and terminals for mobile communications via satellite (SATCOM).
 
     Statements contained in this press release regarding future revenues and
 financial results, the potential for various businesses and products, and the
 schedule for, and the operation and market potential of, various product and
 market initiatives are forward-looking statements.  Actual results could
 differ from those statements as a result of a wide variety of factors.  Such
 factors include, but are not limited to...
     *  the effects of general economic conditions on capital spending in the
        Company's principal markets;
     *  successful completion of technological development programs by the
        Company and the effects of technology that may be developed by
        competitors;
     *  successful transition of products from development stages to an
        efficient manufacturing environment;
     *  customer response to new products and services, and general conditions
        in our target markets (such as logistics, PCS/cellular telephony, and
        space-based communications);
     *  the availability of financing for satellite data communications systems
        and for expansion of terrestrial PCS/cellular phone systems;
     *  the extent to which competing terrestrial systems succeed in providing
        extensive broadband Internet access on a dependable and economical
        basis;
     *  the growth rate of demand for various mobile and high-speed data
        communications services;
     *  the outcome of efforts to participate with potential strategic partners
        in offering Ka-band high-speed data communications service via
        geostationary satellite;
     *  development of successful working relationships with local business
        people and governmental officials in connection with distribution and
        manufacture of products in  foreign countries;
     *  the Company's ability to attract and retain qualified personnel,
        particularly those with key technical skills; and
     *  the availability of sufficient additional credit or other financing, on
        acceptable terms, to support the Company's expected growth.
     Additional relevant factors and risks are identified in the Company's
 Annual Report on Form 10-K for the year ended December 31, 2000.
 
                             EMS Technologies, Inc.
 
                      Consolidated Statements of Earnings
                     (In thousands, except per-share data)
 
                                             As           As
                                           Revised      Reported
                                           Dec. 31      Dec. 31     Dec. 31
                                             2000         2000        1999
 
     Net sales                             $273,143     273,143      242,414
 
     Cost of sales                          181,937     181,937      167,118
 
     Selling, general and
      administrative expenses                50,635      50,635       45,211
 
     Research and development expenses       27,735      27,735       21,816
 
     Write down of NetSat assets              2,891         ---          ---
 
       Operating income                       9,945      12,836        8,269
 
     Non-operating income, net                  175         175        1,310
 
     Interest expense                       (4,326)     (4,326)      (2,827)
 
       Earnings before income taxes           5,794       8,685        6,752
 
     Income tax (expense) benefit           (1,303)     (2,402)      (1,912)
 
       Net earnings                          $4,491       6,283        4,840
 
 
     Net earnings per share:
       Basic                                   $.51         .72          .56
 
       Diluted                                  .50         .71          .55
 
 
     Weighted average number of shares:
       Common                                 8,766       8,766        8,703
 
       Common and dilutive
        common equivalent                     8,912       8,912        8,775
 
 
     Excluding the NetSat write down, the results are unchanged from those
 previously reported.  The Company's full Annual Report on Form 10-K for the
 year ended December 31, 2000, is available through the Company's website at
 www.ems-t.com .
 
 SOURCE  EMS Technologies, Inc.