Investor Overview

Corporate Overview

Frequency Electronics, Inc. (FEI) is a world leader in the design, development, and manufacture of high-precision timing, frequency control and synchronization products for satellite and terrestrial applications.

The Company's products are used in commercial, government and military systems, including satellite payloads, missiles, UAVs, piloted aircraft, GPS, secure radios, SCADA, energy exploration and wireline and wireless communication networks. FEI has received over 60 awards of excellence for achievements in providing high performance electronic assemblies in over 120 space programs.

Growth Opportunity
The total high precision time and frequency market is expected to grow substantially. FEI’s addressable market is projected to increase from today's under $500 million to over $1 billion per year, particularly for space related products. FEI's goal is to capture a larger share of this growing market.

Business Strategy
The Company's mission is to utilize its proprietary technologies to provide the most advanced products for control of frequency and time. Precise time and frequency are essential factors for synchronizing communication networks and for providing reference frequencies for certain terrestrial and space applications in military, commercial and scientific programs. Higher precision atomic clocks are key to protecting critical government systems, such as GPS, from jamming and spoofing.

The Company's recent initiatives are aimed at new, large market opportunities by broadening the Company's product offerings for atomic clocks and related technology.

FEI also continues to review opportunities to grow the Company by merger, acquisition, and strategic partnership.

Growth Drivers
Following are the key growth drivers for the high precision time and frequency industry and FEI's technologies and products.

• Increased synchronization requirements for government and commercial wireless networks as services are expanded to maximize spectrum utilization.
• Replacement of existing commercial satellites.
• Upgrade of US Government satellite systems to increase available bandwidth and provide better protection from jamming and spoofing.
• Secure radios for military applications.
• Improved guidance & navigation systems for advanced weapons systems and Unmanned Aerial Vehicles (UAVs).
• Increasing demand for electronic warfare systems in response to increasing geo-political threats

Product Pipeline
To address these growth areas, FEI has introduced a number of new products aimed at increasing its share of the high precision time and frequency market. These product initiatives are expected to generate substantial revenue and form the basis for continued revenue growth in future years.

• State-of-the-art master clocks, frequency generators and synthesizers, frequency converters and receivers for government and commercial satellite payloads.
• Unparalleled high performance and cost-effective Quartz oscillators for space and terrestrial applications.
• Precision oscillators and atomic clocks that apply FEI’s patented low gravitational-sensitivity ("low g") technology for large military applications as well as certain commercial programs.