Andrew Corporation, a global leader in communications equipment and systems, has significantly expanded its strategic relationship with PCT International Inc. and its holding company, Andes Industries Inc., through an agreement that will combine the companies’ broadband cable assets and create the first global entity that provides complete last-mile cable connectivity solutions to the broadband industry.

Under terms of the agreement, Andrew will receive approximately $16 million in cash and short-term notes, and will convert an existing note from Andes into a 30 percent equity stake in Andes, a Gilbert, Arizona-based developer, manufacturer, and distributor of products for broadband communications networks. In addition, PCT will acquire Andrew’s broadband cable manufacturing operations in Yantai, China and all broadband cable inventories worldwide, and take operating responsibility for the combined business. The acquisition of the manufacturing operations in Yantai, China will be subject to the approval of the government authorities in the People’s Republic of China and other customary conditions.

“Our agreement with Andes will combine the complementary resources, capabilities, and product portfolios of two companies that serve the same cable television multiple system operators (MSOs),” said John DeSana, executive vice president and group president, Antenna and Cable Products Segment, Andrew Corporation. “It is the best way to accelerate the profitable growth of this business and to achieve the scale and scope necessary to serve our customers better.

“The broadband market is strategically important to Andrew and we have worked hard over the past few years to build a market presence and achieve type-approval for our cable products from major North American MSOs. Our partnership with Andes and its PCT subsidiary significantly advances our efforts, enabling our combined entities to deliver compelling end-to-end solutions to cable MSOs around the world.”

The approximately 465 people currently employed in Andrew’s North American and international broadband cable business will transfer to PCT upon closing of the transaction, expected to be prior to the end of Andrew’s fiscal second quarter 2007. PCT will continue to manufacture and market broadband cable in certain markets under the Andrew brand utilizing the design, intellectual property, and quality currently featured in Andrew’s broadband products.

“We are very excited about continuing and further strengthening our long-term relationship with Andrew,” said Steve Youtsey, president and chief executive officer, Andes Industries Inc. and PCT International Inc. “This transaction is an important step in further solidifying our position as a global leader in complete last-mile solutions for broadband communications networks. Andrew has developed tremendous expertise in transmission cable design and manufacturing, an important competency in delivering high quality products to our customers. We firmly believe our comprehensive offering of proprietary products, coupled with our value-added support and global reach, produce a compelling value proposition to our customers and shareholders alike.”

Andrew made a capital investment in Andes and its principal operating subsidiary, PCT International, as part of a strategic alliance formed in November 2003.

About Andrew Corporation

Andrew Corporation (NASDAQ:ANDW) designs, manufactures, and delivers innovative and essential equipment and solutions for the global communications infrastructure market. The company serves operators and equipment manufacturers from facilities in 35 countries. Andrew (www.andrew.com), headquartered in Westchester, IL, is an S&P MidCap 400 company founded in 1937.

About PCT International Inc. and Andes Industries Inc.

PCT International Inc. and its holding company, Andes Industries Inc., is a leading worldwide manufacturer of last-mile products for broadband communication networks. PCT focuses on innovative and cost-effective solutions that allow service providers to improve system integrity and expansion of their service offerings. PCT’s portfolio includes transmission and connectivity products for the broadband, CATV, satellite and structured wiring markets. PCT is headquartered in Gilbert, Arizona, and has over 1,000 employees. PCT maintains multi-international locations to support worldwide manufacturing, logistics, and distribution of its products and services. For more information, please visit www.pctinternational.com.

Forward-Looking Statements

Some of the statements in this news release are forward-looking statements and we caution our stockholders and others that these statements involve certain risks and uncertainties. Factors that may cause actual results to differ from expected results include fluctuations in commodity costs, the company's ability to integrate acquisitions and to realize the anticipated synergies and cost savings, the effects of competitive products and pricing, economic and political conditions that may impact customers' ability to fund purchases of our products and services, the company's ability to achieve the cost savings anticipated from cost reduction programs, fluctuations in foreign currency exchange rates, the timing of cash payments and receipts, end use demands for wireless communication services, the loss of one or more significant customers, and other business factors. Investors should also review other risks and uncertainties discussed in company documents filed with the Securities and Exchange Commission.

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Andrew Corporation
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Andrew Corporation
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Michelle Meng, +86 10-8518-9608