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To: The Ox who wrote (169)	7/30/2008 4:54:27 PM
From: Rob Preuss	Respond to of 312

Ox, So I wonder whether the accounting problems were found within the old "Stratex Networks" portion of the business or the old "Harris Microwave Communications Division" side of the business. Amazing that they're just being discovered now, about 3-4 years after they started. Do you think the estimated cumulative hit to earnings ($18 to $25 million) takes into account the reduced taxes they will have to pay for those previous years. (I'm assuming they'll file amended tax returns for the company.) Please let me know what they say on the telecon as I may not be able to listen in. Rob

To: The Ox who wrote (169)	7/30/2008 6:10:05 PM
From: Rob Preuss	Respond to of 312

OK. So I listened to the call... Here are some notes: 1) Optus is a Tier 1 company and contributed to the 1.6 book-bill ratio, but the orders booked will be filled over the next 3 quarters. That's why they're saying $188M revenue in Q4 and only $175 to $185 million in Q1. 2) The accounting problem had to do with "system" issues that were active only in one location, but they had nothing to do specifically with that location. Hence Braun said that he would not identify that specific location. (The system handles their US manufacturing cost accounting. The location was a US manufacturing location. The system was scheduled to be migrated to another system and this migration has now been given higher priority.) [I think this points to the problem having been within the old Harris Microwave Comms Division and not within the old Stratex Networks.] 3) The $13-14 million charge was due mostly to sales commissions under the current 2-plan compensation structure. Braun doesn't like the current compensation structure and will be introducing a new unified plan globally that reflects his own ideas on proper compensation. Probably this will mean, in part, that commissions will not be due before revenue is recognized (thereby avoiding the issues we see here, where charges for commissions must be recognized several quarters before the revenue is recognized). 4) Industry growth if 6-8 % while growth in the IP-based segment is huge at 60+ %. As they accelerate their transition to IP-based products we should see revenue and earnings growth accelerate accordingly. Right now HSTX has about 31% of its revenue in IP-based products (up from 28% last quarter, on a TTM basis) and Braun wants this to be in the 60-70% range by 2011. Europe and Asia has adopted IP more than North America has, so far, but Braun expects North America to catch up. 5) Braun has reduced the number of his direct reports to about 9 although not all positions have been filled yet. (Note: I had a hard time counting as he quickly ran through his new executive team so this number might be off by a bit.) 6) Great customer feedback on the Eclipse platform and its a very very robust platform. Its also very power efficient (consumes less than a light bulb) which reduces their carbon footprint and customers like this. 7) Braun has made some hires for his business improvement project. In this project he's trying to consolidate processes and tools... he's also expecting this project to be 80-90% complete by the end of this year. 8) Order momentum is clearly building up. 9) The earnings call has been postponed to an unspecified future date which, hopefully, will be only weeks away.

To: The Ox who wrote (169)	8/4/2008 10:34:04 AM
From: Rob Preuss	Respond to of 312

Finkelstein Thompson LLP Investigates Harris Stratex Restatement Aug 1, 2008 12:51:15 (ET) WASHINGTON, Aug 1, 2008 (PrimeNewswire via COMTEX) -- Harris Stratex Networks, Inc. (HSTX, Trade ) (the "Company") announced it had discovered accounting errors which would require it to restate earnings over four fiscal years -- that is, for fiscal 2008, 2007, 2006, and 2005. The Company also stated higher costs would lead it to miss its previously stated earnings target for fiscal 2008. Harris Stratex's share price dropped on this news, losing as much as 35% of its value after the restatement was announced. Finkelstein Thompson LLP welcomes inquiries from Harris Stratex shareholders concerning their rights and interests in connection with this matter. Finkelstein Thompson LLP has spent almost three decades delivering outstanding representation to institutional and individual clients in connection with securities and other finance-related litigation, and has been appointed as lead or co-lead counsel in dozens of shareholder class actions. Indeed, in the past decade, the firm has served leadership roles in cases that have recovered over $1 billion for investors and consumers. Interested shareholders can reach Finkelstein Thompson's Washington, DC office at (877) 337-1050 or by email at contact@finkelsteinthompson.com. This news release was distributed by PrimeNewswire, www.primenewswire.com SOURCE: Finkelstein Thompson LLP Finkelstein Thompson LLP (877) 337-1050 contact@finkelsteinthompson.com

To: The Ox who wrote (169)	8/4/2008 10:34:21 AM
From: Rob Preuss	Respond to of 312

The Law Offices of Eric J. O'Bell, LLC Announce Initiation of Investigation Into Harris Stratex Networks, Inc. for Possible Securities Act Violations Aug 1, 2008 17:51:52 (ET) METAIRIE, La., Aug 1, 2008 (PrimeNewswire via COMTEX) -- The Law Offices of Eric J. O'Bell, LLC ("O'Bell") announce that it is commencing an investigation into Harris Stratex Networks, Inc. ("Harris Stratex" or the "Company") (HSTX, Trade ) to determine whether it has violated federal securities laws by issuing materially false and misleading statements to shareholders. Harris Stratex, an independent supplier of turnkey wireless transmission solutions, recently announced that the Company discovered accounting errors which would require it to restate earnings reports from 2005 through the present. The Company reported these errors will cut previously reported earnings by $18 million to $25 million. Upon publication of this news, shares of Harris Stratex declined to a new 52-week low. If you are a Harris Stratex shareholder, and/or have information that would assist in this ongoing investigation, or have other questions relating to a loss you've suffered in your investment, you may contact Eric J. O'Bell directly without obligation or cost to you at 504-456-8677; or by email to ejo@obelllawfirm.com. This news release was distributed by PrimeNewswire, www.primenewswire.com SOURCE: Law Offices of Eric J. O'Bell, L.L.C. Law Offices of Eric J. O'Bell, LLC Eric J. O'Bell 504-456-8677 Fax: 504-456-8624 ejo@obelllawfirm.com 3500 North Hullen Street Metairie, Louisiana 70002

To: The Ox who wrote (169)	8/4/2008 10:35:41 AM
From: Rob Preuss	Respond to of 312

Investor Notice: The Rosen Law Firm Announces Investigation of Securities Claims Against Harris Stratex Networks, Inc. Aug 1, 2008 20:46:59 (ET) NEW YORK, Aug 1, 2008 (PrimeNewswire via COMTEX) -- Attorney Advertising. The Rosen Law Firm announces that it is investigating potential civil securities claims against Harris Stratex Networks, Inc. ("Harris Stratex" or the "Company") (HSTX, Trade ) concerning allegations that Harris Stratex issued materially false and misleading statements about its financial condition prior to and following its formation in early 2007 through the date of the merger of Stratex and the Harris Microwave Communications Division. On July 30, 2008 the Company announced that it discovered accounting errors which rendered its previously issued financial statements to be incorrect. According to the announcement, the Company expects that the errors would cause previously reported pre-tax income to be reduced by $18 million to $25 million. Thus, the Company announced that its prior financial statements for the first three quarters of fiscal 2008 and the fiscal years 2005-2007 should no longer be relied upon. As a result of these adverse disclosures, the Rosen Law Firm is investigating potential claims against Harris Stratex for violation of the of the federal securities laws. If you purchased Harris Stratex stock anytime since it began trading in early 2007 through and including July 30, 2008; or became a shareholder of the Company by virtue of the merger of Stratex and the Harris Microwave Communications Division, and would like further information concerning your legal rights, please contact Laurence Rosen, Esq. or Phillip Kim, Esq. of The Rosen Law Firm toll free at 866-767-3653 or via e-mail at lrosen@rosenlegal.com or pkim@rosenlegal.com. You may access the website at rosenlegal.com to contact the Rosen Law Firm for additional information. Attorney advertising. Prior results do not guarantee a similar outcome. This news release was distributed by PrimeNewswire, www.primenewswire.com SOURCE: The Rosen Law Firm PA PC The Rosen Law Firm P.A. Laurence Rosen, Esq. lrosen@rosenlegal.com Phillip Kim, Esq. pkim@rosenlegal.com (212) 686-1060 Weekends Tel: (917) 797-4425 Toll Free: 1-866--767-3653 Fax: (212) 202-3827 www.rosenlegal.com 350 5th Avenue, Suite 5508 New York, New York 10118

To: The Ox who wrote (169)	8/4/2008 10:36:47 AM
From: Rob Preuss	Read Replies (1) \| Respond to of 312

Harris Stratex Puts '08 EPS Below View; Will Restate Fincls Jul 30, 2008 18:40:25 (ET) Harris Stratex Networks Inc. (HSTX) said fiscal 2008 earnings won't meet the company's previous estimate due to surging expenses as it also delayed the release of its results in order to focus on a restatement of its financials back to 2005. Shares fell 20% to $9.01 in after-hours trading. Although the wireless network services provider saw record bookings and expects strong revenue growth - to $188 million - in its fiscal fourth quarter ended June 27, it said expense levels increased by $13 million to $14 million from previous estimates, leading to the earnings shortfall. The company previously expected earnings of 82 cents for the year. The mean estimates of analysts polled by Thomson Reuters was for per-share earnings of 83 cents. Harris Stratex determined its financial statements for the first three quarters of the year and fiscal years 2005 to 2007 should no longer be upon due to accounting errors. The company expects its pretax income to be reduced by a total of $18 million to $25 million. Looking ahead, the company also said it expects additional restructuring and integration charges in fiscal 2009 for outsourcing activities. Harris Stratex expects fiscal first-quarter revenue of $175 million to $185 million, in line with analysts' view of $185 million. -By Lauren Pollock, Dow Jones Newswires; 201-938-5964; lauren.pollock@dowjones.com Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: djnewsplus.com. You can use this link on the day this article is published and the following day. (END) Dow Jones Newswires July 30, 2008 18:37 ET (22:37 GMT)