Marconi Sells Military Comms Biz

LONDON -- Marconi plc (Nasdaq: MONI; London) today announced it has completed the sale of its Strategic Communications business (Marconi Mobile Holdings SpA) to Finmeccanica SpA (Milan: SIFI) for approximately 387 million pounds (614 million euros).The completed sale is not conditional on any approvals or consents. The proceeds, received today in the form of cash and in debt assumed by Finmeccanica, have had the effect of reducing Marconi's net debt.Mike Parton, Marconi chief executive, said: "We have achieved a very positive outcome for Marconi and for Strategic Communications. Finmeccanica will be an excellent home for the business, its customers, management and employees."Strategic Communications designs, manufactures and supplies communications and information systems, primarily for defense and security applications, including ground, naval, avionic communications/command and control systems. The company employs approximately 4,000 people in Italy, UK, Germany and Turkey and, in the financial year ended 31 March 2002, had sales of approximately 308 million pounds (502 million euros).In the year-ended 31 March 2002, the Strategic Communications business made an operating contribution to Marconi plc's profits, before exceptional items, of approximately 30 million pounds (49 million euros). At the same date the business had net assets of approximately 201 million pounds (328 million euros). The sale of Marconi Mobile Holdings SpA does not include Marconi's Public Mobile Radio and Private Mobile Radio business units, which were demerged from Marconi Mobile Holdings before today's sale.Marconi PLC