Andrew Corporation, a global leader in communications systems and products, will retain its existing satellite communications production facility in Smithfield, N.C., after reaching a lease agreement in principle with the prospective new owner of the property.

Andrew will utilize a 235,000 square foot section of the 750,000 square foot building--about one-third of the space it now occupies--and will continue to operate stamping, molding, paint, and packaging operations for its global satellite communications business.

The facility is being purchased from the Channel Master bankruptcy estate by Industrial Realty Group, a Downey, California-based company. Andrew has extended its current lease through June 2007 and agreed in principle to long-term lease terms that will be executed when IRG closes on the facility purchase next month. Approval of economic development incentive grants also is required from Johnston County and the town of Smithfield.

Andrew plans to invest in certain new manufacturing equipment and facility improvements to improve workplace and operational efficiencies. "With this unexpected lease opportunity, we have been able to develop a long-term plan that enables us to meet our business objectives without relocating from our existing facility," said Jude Panetta, group president, Satellite Communications, Andrew Corporation. "This is very advantageous to our business and our employees since we will not face the disruption of starting an entirely new operation under a very aggressive schedule."

Andrew's existing lease was due to expire in December 2006 and, with the bankruptcy court sale of the building expected to lead to redevelopment into retail usage, the company explored options for relocation. In December 2005, Andrew announced plans to build a new smaller facility in nearby Wayne County, N.C., but the pending sale of the building to IRG and its plans to retain the building for industrial use created an unexpected and compelling option to lease a portion of the facility. By avoiding the high cost of equipment relocation and retaining the existing utilities infrastructure at the Smithfield facility, the business case for remaining in Smithfield became more attractive than relocation.

"Officials from Wayne County, the city of Goldsboro, and Wayne County Economic Development were extremely helpful and supportive during the last several months," Panetta said. "We know that this change in direction is a disappointment to them, but it is welcome news for many others, especially our employees, customers, and the Smithfield community. By staying in the same facility, we are able to make changes that are needed to keep our business competitive without the risks and complexity associated with a relocation of our manufacturing operations."

IRG has been active for several decades in the business of re-developing large industrial sites throughout the country. Among its many portfolio properties is the 10 million square foot, 4,000-acre former McClellan Air Force Base in Sacramento, CA.

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 500 company founded in 1937.

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
Rick Aspan (News Media), 708-236-6568
publicrelations@andrew.com
or
Scott Malchow (Investor), 708-236-6507