Telephonics Corporation, a wholly owned subsidiary of the Griffon Corporation (NYSE:GFF) announced today that it has received a contract modification from Boeing Integrated Defense Systems, Wichita, Kansas for the addition of an Internet Protocol advanced data controller function to the digital audio distribution system currently in development for the aircraft. This contract modification, which includes additional system development, is valued at $1.7 Million.

Telephonics' Boeing B-52H Combat Network Communications Technology (CONECT) program is scheduled to complete system design and development phase by December 2007. Under this contract, Telephonics will install a network interface module in its Secure Digital Intercommunication (SDI) system that will provide Internet Protocol data communications between the aircraft and ground stations over Beyond Line of Sight (BLOS) satellite communication radios. This will provide the crew with secure data messages, file transfer, e-mail and text chat capability. As part of its effort, Telephonics will qualify the module to the rigorous environmental and mission requirements of the B-52.

Designed to provide interfaces to both legacy radios as well as future network-centric Internet Protocol communications, the SDI system is currently deployed on a wide range of military platforms, including strategic, surveillance and tactical fixed wing aircraft as well as rotary wing aircraft and unmanned aerial vehicle ground control stations.

"This new capability will provide the Air Force and Boeing with a unique platform capability, providing unprecedented secure communication capability for the crew. This network centric data communication capability can now be made available to the many Government users of Telephonics communication management systems that are installed on strategic, tactical and transport platforms "said Phil Nicholas, President, Telephonics Communication Systems Division. Work on this program will be performed at the Telephonics facilities in Farmingdale, NY.