JP_Morgan_Conference

JPMorgan Basics and Industrials Conference

June 11, 2007

Howard L. Lance

Chairman, President and Chief Executive Officer

Investor Briefing, 2 June 2007

Forward looking statements

Statements in this presentation that are not historical facts are forward-looking statements that reflect management's current expectations, assumptions, and estimates of future performance and economic conditions. Such statements are made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements in this presentation include but are not limited to: anticipated timing of the closing of the acquisition of Multimax and satisfaction or the conditions to closing, the impact of the acquisition on Harris fiscal 2008 earnings, earnings-per-share guidance for fiscal 2007 and 2008, and statements regarding revenue growth and outlook. The Company cautions investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements. The Company's consolidated results and the forward-looking statements could be affected by many factors, including but not limited to: our participation in markets that are often subject to uncertain economic conditions which makes it difficult to estimate growth in our markets and, as a result, future income and expenditures; our dependence on the U.S. government for a significant portion of our revenues, and the loss of this relationship or a shift in U.S. government funding could have adverse consequences on our future business; potential changes in U.S. government or customer priorities due to program reviews or revisions to strategic objectives, including termination of or potential failure to fund U.S. government contracts; risks inherent with large long-term fixed-price contracts, particularly the ability to contain cost overruns; the performance of critical subcontractors or suppliers; financial and government and regulatory risks relating to international sales and operations, including fluctuations in foreign currency exchange rates and the effectiveness of our currency hedging program; our ability to continue to develop new products that achieve market acceptance; the consequences of future geo- political events, which may affect adversely the markets in which we operate, our ability to insure against risks, our operations or our profitability; strategic acquisitions and the risks and uncertainties related thereto, including our ability to manage and integrate acquired businesses; potential claims that we are infringing the intellectual property rights of third parties; the successful resolution of patent infringement claims and the ultimate outcome of other contingencies, litigation and legal matters; customer credit risk; the fair values of our portfolio of passive investments, which values are subject to significant price volatility or erosion; risks inherent in developing new technologies; the potential impact of hurricanes on our operations in Florida and the potential impact of earthquakes on our operations in California; the impact of the results of Harris Stratex Networks, which may vary significantly and may be difficult to forecast; the ability to recruit and retain qualified personnel; and general economic conditions in the markets in which we operate. Further information relating to factors that may impact the Company's results and forward-looking statements are disclosed in the Company's filings with the SEC. Harris disclaims any intention or obligation, other than imposed by law, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.


Business segment revenue mix

Based on latest 12 months ended March 2007 pro forma revenue of $4.2B (including Harris Stratex Networks for the entire period). Reference non-GAAP reconciliation on Harris Investor Relations website

RF Communications

Harris StratexNetworks

BroadcastCommunications

GovernmentCommunicationsSystems

26%

14%

15%

45%


FY04 FY05 FY06 FY07* FY08*

$2,519

+16%

Revenue trends

($ in millions)

* Fiscal 2007 and 2008 guidance provided on May 31, 2007

$3,001+19%

+20%

$3,475

+18-22%

~$4,170

$4,900-$5,100

GovernmentCommSystems

RF Comm

Broadcast

Harris StratexNetworks


* Reference non-GAAP reconciliation on Harris Investor Relations website

GAAP EPS

Non-GAAPEPS*

FY04 FY05 FY06 FY07 FY08

$.96

$.92

$1.51

+57%

$1.46

$2.22+47%

Earnings per share trends

$3.39-3.43FY04 FY05 FY07**

** Fiscal 2007 and 2008 guidance provided on May 31, 2007

$1.71

FY06

$2.77-2.81

+26%$3.28-3.38

+19%

FY08**$3.21-3.31


FY04 FY05 FY06

$111$137

Engineering R&D investments

Internally Funded

$188

Fiscal 2006 – $814

Government Funded

$626

($ in millions)

$188


Major new product introductions

SecNet® 54 SecureWireless LAN

TRuepoint™ 6000Microwave radio

Falcon® IIIMB handheld

Falcon® III MBSINCGARS alternative

Falcon® III manpackand high-capacity

data radios

Falcon® SecurePersonal Role

Radio

Mobile TVtransmitterPlatinum router

NEXIO™ video server

FlexStar™ HDradio exciter

CENTRIO™ Multi-viewer

HD master control

MPEG-4 HD Encoder


Increasing new product revenue

Revenue Percent ofrevenue

New products defined as products introduced within past 3 years

ProjectedFiscal 2006 Fiscal 2007

Total product revenueNew product revenue

0

200

400

600

$800M

0

5

10

15

20

25

30

35

40%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

%


Current financial position

• Excellent liquidity– $523 million in cash, cash equivalents and short-term investments at end of

third quarter

– $525 million in unused credit facilities (Harris Stratex $25 million)

– Universal shelf in place with no limitations as to amounts we can raise

– Cash flow from operations for fiscal 2007 is expected to exceed $450 million

• Strong balance sheet– Total-debt-to-total-capital ratio of 27%

– Debt ratings at BBB+/Baa2

• Increased dividend– Quarterly dividend is currently $.11 per share

• $600 million stock repurchase announced May 1, 2007


Harris Government businesses

Aviation electronics

Intelligence, surveillance,and reconnaissance

Communications andinformation networks

Mission operations and support services

Space and groundSATCOM systems

Tactical radio communications


Diverse government customer base

Based on latest 12 months ended March 2007 revenue of $3B for the Harris Government businesses

Intelligenceagencies• NSA• NRO• NGA• Other

classified

Civil agencies• FAA• Census Bureau• NOAA• Gov’t Printing Office• Dept of Justice

TechnicalServices• NRO• Air Force• Naval Research Labs• Dept of State• Postal Service• Dept of Health & Human Services

Dept of Defense• Army• Navy• Marine Corps• Air Force• National Guard

Products

Systems

International• over 100 countries


Driving revenue growth and diversity in Government Communications Systems

DoD

Intelligenceagencies

Civil agencies

Technical Services

12 monthsended 3/30/02

$904M

12 monthsended 3/30/07

$1.9B

DoD

Intelligenceagencies

Civil agencies

Technical Services


Program diversity — over 300 programs

0

20

40

60

80

100

120

140

160

180

(LTM revenue $ in millions)

No single program represents more than 9% of revenue in Government Communications Systems

Department of DefenseIntelligence Agencies Civil Agencies Technical Services

Top 15 programs


* Down-select follows development phase.

Department of DefenseDepartment of DefenseF/A 35 Joint Strike Fighter (JSF);

F/A 22 Raptor; F/A 18 E/F Super Hornet

Multi-functional Information Distribution System (MIDS)

Large Aperture Multiband Deployable Antennas (LAMDA)

Multiple Launch Rocket System (MLRS)

Multi-band Shipboard SATCOM Terminal (MSSCT)

Advanced Extremely High Frequency Navy Multi-band Terminal (AEHF) *

Hawklink Common Data Link (LAMPS)

Intelligence Programs (classified)Intelligence Programs (classified)

CivilCivilFAA Telecommunications

Infrastructure (FTI); Mission Support; Satellite Network

FAA Voice Switching and Control System (VSCS)

FAA Weather and Radar Processing (WARP)

NGA mapping, imagery

U.S. Census Bureau databases (MAF/TIGER)

U.S. Census Bureau Field Data Collection Automation Program (FDCA)

Geostationary Operational Environmental Satellite System (GOES-R) *

Technical ServicesTechnical ServicesNational Reconnaissance Office

(NRO) operations, maintenance, and support (Patriot)

Air Force 50th Space Wing Operational Space Services and Support (OSSS)

Air Force 50th Space Wing Mission Communication Operations and Maintenance (MCOM)

DISA Crisis Management System (CMS)

U.S. Department of State, Bureau of Consular Affairs modernization and support

Government Communications Systems program diversity — over 300 programs


Growth strategies

• Build on success in core markets – avionics, data links, space antennas and electronics, communications networks, database and image processing, wireless products, mission IT services

• Continue customer diversification – leverage capabilities into new civilian agencies with secure communications and information technology needs

• Win major positions on key IDIQ contracts

• Leverage synergies with RF Communications – systems technologies and products for selective pursuits in international markets


Acquisition of Multimax — excellent financial rationale

• Acquiring Multimax for $400 million in cash; funded through existing $500M credit facility with long-term debt financing put into place post-closing; expected to close prior to Harris fiscal year end June 29, 2007

• Track record of strong revenue growth and excellent profitability– Latest 12 months pro forma revenue and EBIT of $315 million and

$55 million, respectively

• Contributes double-digit revenue growth at operating margins that are above the Government Communications Systems segment ROS

• Adds by $.08 per diluted share earnings accretion in fiscal year 2008, excluding acquisition-related charges

Multimax is a leading provider of mission-critical communications and IT network systems and services for U.S. government


Acquisition of Multimax — excellent strategic rationale

• Capitalizes on U.S. government market trend for increased outsourcing of IT systems and communications networks support services

• Adds experienced management team and workforce– 1,100 employees; primarily located at customer sites, providing strong

relationships and access to new opportunities– Majority with IT technical certifications– 85% have security clearances– Excellent track record of meeting service-level commitments

• Complements existing Harris services business, providing greater scale– Creates $700 million revenue base and combined workforce of more than 3,000

• Broadens customer list– New DoD customers within Air Force, Army and Navy, including services to key

bases such as Wright Patterson AFB, Gunter AFB, and Ft. Monmouth Army base– Department of Homeland Security and Department of Veterans Affairs

• Provides excellent growth opportunities through Multimax’s prime positions on large Government-Wide Acquisition Contracts (GWACs)


Acquisition of Multimax – key contracts and customers

• The NETCENTS program for the U.S. Air Force, a procurement vehicle for network-centric information technology with a $9 billion ceiling (Prime contract)

• The ITES-2S program for the U.S. Army, a procurement vehicle for information technology enterprise solutions with a $20 billion ceiling (Prime contract)

• The EAGLE program for the Department of Homeland Security, a procurement vehicle for systems and services, with a $45 billion ceiling (Prime contract)

• The FirstSource program for the Department of Homeland Security, a procurement vehicle for products with a $3 billion ceiling (Prime contract)

• The Navy Marine Corps Intranet (NMCI) program providing a full range of network-based voice, video and data communications on a single, enterprise-wide Intranet (sub- contract to EDS)

• The Network Enterprise program for the U.S. General Services Administration (GSA), a procurement vehicle for over 135 government agencies (sub-contract to Level 3).

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http://images.google.com/imgres?imgurl=http://download.tsa.dhs.gov/fssa/training/images/DHS_Logo.gif&imgrefurl=http://download.tsa.dhs.gov/fssa/training/&h=246&w=246&sz=24&hl=en&start=1&tbnid=_nnu_6kcjoc0HM:&tbnh=110&tbnw=110&prev=/images%3Fq%3Ddhs%26gbv%3D2%26svnum%3D10%26hl%3Den


Acquisition of Multimax – locations

Alaska

Hawaii

Offices

Employees

Service areawith 4-hour maximum to respond

HQ

Network services support more than 800,000 users at 3,800 locatiNetwork services support more than 800,000 users at 3,800 locationsons


Principal products

• Tactical radios– Interoperable Falcon® II,

software-defined tactical radios• HF, VHF, UHF, and multiband –

manpack, handheld and vehicular– Falcon® III multiband, multi-mission

radios• JTRS SCA compliant multiband

handheld and manpack radios and secure personal radio with wideband networking capability

• Cryptographic solutions– NSA-recognized leaders in

embedded encryption• Sierra™, Citadel®

– Core differentiator and competitive barrier


Global ground tactical radio market leadership

Harris33%

ITTThales

Tadiran

Rohde & Schwarz

All Others

Harris market share estimates based on calendar year 2006 ground-based, global tactical radio market of $2.7B compared to $2.2B in the prior year.

General Dynamics

Raytheon

Harris market share increased from 27% in CY2005 to 33% in CY2006 in a market that grew 23%


Key differentiators

• Successful “commercial” business model– Anticipate market needs and design to

military standards– Ready-to-ship, off-the-shelf products for both U.S. and

international customers– Primarily use internal R&D resources to create leading-

edge products

• Technical leadership

• Outstanding field service and support

• World-class international distribution channels supporting historically strong and growing international position

• Global strength — strong positions in both U.S. and international markets


Ongoing growth drivers

• Modernization and expansion of tactical communications capability

– Expanded mobility– Broader command, control and communications

required at lower levels– DoD funding continues to place high priority

on investment in tactical communications

• Expanding International modernization opportunities

– Pakistan, Mexico, Algeria, Iraq, UAE, Australia

• Falcon III JTRS certified radios creating additional demand

– We are JTRS!

• Doubling addressable markets to $6B by entering into new growth areas with new products


Near-term U.S. DoD opportunities total more than $3B

JTRS Handheld Radio Program and TACP modernization for the U.S. Air Force

HF and multiband expansion, SINCGARS alternative for U.S. Army

Mine Resistant Ambush Protected vehicle (MRAP) program

HF and Multiband, Multimission Radio follow-on (MBMMR) and tactical handheld

radios for the Marine Corps

DoD-wide competitive procurement for JTRS handheld radios (CISCHR)

DoD-wide HF radio procurement contract for the U.S. SOCOM


+

+

Near-term international opportunities total more than $1.5B

Europe• UK MOD• Netherlands Army • Netherlands Air Force• Romania MOD

Middle East and Africa• Algeria MND• Algeria Gendarmerie• UAE SOC• Saudi SANG• Kenya MOD• Iraq National Army

Latin and Central America• Mexico Army• Mexico Navy• Chile Army• Chile Air Force• Chile SOF

Asia Pacific• Philippines MOD• Australia Army• Indonesia MOD

Central Asia• Pakistan Army • Pakistan Frontier Corps• Georgia MOD


Falcon III

• Builds on the success of Falcon II and fulfills tomorrow’s promise of JTRS today• Next-generation multiband, multimission platform • Handheld, manpack, vehicular, high-capacity data radio, soldier radio • Designed for today’s legacy interoperability needs and tomorrow’s

data networking requirements• Supports transformation to true network-centric operations• Certified by the JTRS Joint Program Executive Office (JPEO),

a significant endorsement in the marketplace• Gaining significant market traction!

– AN/PRC-152 multiband handheld and vehicular AN/VRC-110 version are in high volume production

– Fielded with great success – over 15,000 units shipped– In service with U.S. Army, Air Force, Navy, other

government agencies, Australia and NATO countries– Demonstrated ease of upgradeability with new waveforms– Successful manpack and international soldier radio

product launches– Networked soldier radio prototype demonstrated

• Advanced capability– JTRS SCA compliant architecture– Extends frequency range from 512 MHz to 2 GHz– Significant reduction in weight and size– Adds wideband secure networking– Secure interoperability with First Responders– Programmable encryption – NSA certified


Domestic International

HFMP

VHFMP/HH

MultibandMP HH SPR HCDR HCLOS HF

MPVHF

MP/HHMultiband

MP HH SPR HCDR HCLOS

HARRIS Falcon II Falcon III

Thales

ITT

Raytheon

Tadiran

Selex

Rohde & Schwarz

Tactical radio products competitive landscape


Falcon III “Which would you rather carry?”


Falcon III is changing the game

• Legacy SINCGARS radios only provide single-mode, short-range, line-of-site communications

SINCGARS

Legacy SINCGARS


Falcon III addresses the full range of mission requirements today with the upgrade capability to address the requirements of the future

Falcon III is changing the game – Multiband, Multimission

• Legacy SINCGARS radios support only a single mode

• Falcon III multiband, multimission radios provide multimode interoperability:

– Ground-to-ground SINCGARS– Ground-to-air– Long range tactical satellite– Easy vehicle dismount – mobility– Interoperability to legacy radios

• Software upgradeable to incorporate new waveforms as developed

– Examples:• APCO P25 first responder

interoperability• Search & rescue functionality• Other wideband networking

waveforms

SINCGARSEasy

dismount

TACSAT

First responders

FALCON III AN/VRC-110

Ground-to-air

Search & rescue


Expanding the addressable market

Harris core tactical radio addressable market size

HF

MB Manpack

VHF Other

$1.6B

UHF

Addressable CY05

Addressable market expansion – Falcon III

HF

MB Manpack

MB Handheld

VHFSINCGARS

VHF Other

$2.7B

UHF

Addressable CY06

Further addressable market expansion

UHF

HF

MB Handheld

MB Manpack

VHFSINCGARS

VHF Other

Secure Personal RadioHigh-Capacity Data Radio

Falcon Watch SensorHigh-Capacity LOS

COMSECTerminals

PortableSATCOM

InternationalSystems

& Programs

$6.0B

Addressable potential


Harris Stratex Networks

• Provider of wireless transmission network solutions

– Transport, access, and carrier-grade Ethernet microwave systems

– Nodal processors– Network management solutions– Turnkey field services

• Global customer base– Mobile & fixed wireless operators

(cellular, GSM, 3G/UMTS, WiMAX)– Government agencies– Public utility and transportation companies– State and local government and public

safety providers– Wireline operators– Enterprise networks


Combination offers compelling strategic and financial rationale

• Creates significantly greater scale — the largest independent provider of wireless transmission network solutions

– #4 globally and #1 in North America

• Delivers complementary global distribution channels and significantly expanded customer footprint

• Serves a large market with expected strong growth over next five years• Offers customers an unmatched end-to-end product portfolio• Offers expected annual savings of approximately $35M through

product costs and operating expenses• Creates a larger, highly relevant, and more competitive company

– Stronger financial performance potential– Greater financial capacity– Product leadership– Ability to serve adjacent markets

Positioned to deliver double-digit growth and margin expansion


Harris Stratex 15%

Ericsso n 23%N o kia-Siemens 16%

N EC 13%

A lcatel 17%

Eltek-N era 7%

F ujitsu 1% Others 8%

Market leadership

Others 7%

N ec 12%

T adiran 4%

C erago n 5%

A lcatel 26%

Harris Stratex 48%

North American market

Global market

World’s largest independent supplier of wireless transmission network solutions

NEC

Alcatel

CeragonTadiran

OthersHarris Stratex 48%

Harris Stratex 15%Others

Alcatel

NEC

Nokia-SiemensEricsson

Eltek-Nera

Fujitsu


Africa$199

Asia/Pacific$57

Latin America$41

Europe/Middle East /Russia$141North America

$210

Revenue by region

• #1 in North America• #2 in Middle East and Africa• #4 Globally

Based on revenue of $656 million for the 12 months ended March 2007

($ in millions)


Growth strategies

• Focus on execution of the business plan – deliver cost reduction synergies, focus on customers, stabilize the organization

• Capitalize on North America leadership position – exploit Federal and state recapitalization opportunities, 2GHz spectrum relocation, and increasing capacity requirements by operators

• Increase international penetration – leverage new products and expanded sales channels to penetrate major regional players

• Increase turn-key solutions offering –network design, engineering services, deployment and implementation


Broadcast Communications

Video Infrastructure & Digital Media(Leitch, Aastra) – servers, graphics, test & measurement, routing, networking

Software Solutions to manage broadcast and media workflow (Encoda, OSi) – traffic, billing, automation and video asset management

Transmission –Combination of TV and radio businesses


Harris workflow capabilities

Harris workflow can take you from start to finish

SalesScheduling

IngestMedia management

Newsrooms & editingBroadcast graphics

Networking & routingCore processing

Test & measurementChannel release

Control & monitoring

Automation

Transmission


ONEONE company along the broadcast chain — Harris complete approach


TV & Radio TransmittersSoftware

Video & NetworkingDigital Media

Omnibus

Evertz

Miranda

Sony Broadcast

Tektronix

Thomson Grass

Valley/Thales

Avid/Pinnacle

Harris

Manage/ IngestAutomationTrafficSignal

Mgmt/T&MVideo

ProcessingVideo

DistributionStorage/ Servers

Branding/ Graphics

News Post- Production

Broadest offering in the market

Video Distribution Systems


Revenue mix

Fiscal 04 12 months ended March 2007

$287M

$606M

Infrastructure

Digital Media

Software

Transmission

Infrastructure

Transmission

Software


New consumer services…

Global HDTV households by serviceIn millions

25

20

15

10

5


drive technology spending…

Global broadcast technology revenue projections

$8

$7

$6

$5

$4

$3

$2

$1

In billions


in which we participate fully…

Global broadcast technology revenue by segment

Total market size: $12B Available to Broadcast Communications: $5.8B

Source IABM


Software

Hardware

0

1

2

3

$4M

HD Master Control

OtherHD tape machinery

Systems integrationEncoder upgrade

Automation/TrafficHD playout server

Switches/Routers/Monitoring

$1.3M

HD Production Studio

OtherMonitoring/distribution

Production/routingswitcher

HD production server &graphics

Non-linear editing

Cameras

Systems

$3.3M

Example 1: HD conversion costs for typical station in the U.S.

and capitalize through ONE company ONE company approachapproach……

Available toBroadcast Communications

Stations HD capable$0.9M

<15%

$1.8M≈

10%


ONE supplier of integrated workflow solutions

ONE supplier of integrated signal flow solutions

Technology innovation Services innovation

ONE face to the customer

ONE approach for order fulfillment

ONE number to call for service and support

ONE resource for technical expertise and envisioning


• Exploit Digital & HD leadership – end-to-end new product solutions for production studio, master control, infrastructure and digital media investments, mobile TV, IPTV, HD Radio

• Deploy next-generation workflow software – replace legacy applications with integrated traffic, billing, scheduling, and advertising applications across an open platform architecture

• Integrate content delivery solutions – offer HD content transport and digital video asset management solutions

Growth strategies

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