On May 5, 2017, Harris Corporation (the “Company”) entered into a new fixed dollar accelerated share repurchase transaction agreement (the “ASR Agreement”) with Morgan Stanley & Co. LLC (“Morgan Stanley”) to repurchase shares of the Company’s common stock (“Common Stock”) for an initial payment of $250 million (the “Prepayment Amount”), as part of the Company’s Common Stock repurchase program.

Under the terms of the ASR Agreement, the Company will pay the Prepayment Amount to Morgan Stanley on May 5, 2017 and will receive on the same day an initial delivery of approximately 1,931,818 shares of Common Stock from Morgan Stanley, which is approximately 85% of the total number of shares of Common Stock expected to be repurchased under the ASR Agreement based on the $110.00 closing price of the Common Stock on May 4, 2017. The specific number of shares ultimately repurchased under the ASR Agreement will be based on the average of the daily volume-weighted average price per share of the Common Stock during the term of the transaction, less a discount and subject to adjustments to the terms and conditions of the ASR Agreement. At settlement, Morgan Stanley may be required to deliver additional shares of Common Stock to the Company, or under certain circumstances, the Company may be required to deliver shares of Common Stock or make a cash payment, at its election, to Morgan Stanley. The final settlement of the transaction under the ASR Agreement is expected to occur prior to the end of the first quarter of the Company’s fiscal 2018.

The ASR Agreement contains provisions customary for agreements of this type, including provisions for adjustments to the transaction terms, the circumstances generally under which the ASR Agreement may be accelerated, extended or terminated early by Morgan Stanley and various acknowledgments, representations and warranties made by the parties to one another.

The ASR Agreement is separate from the fixed dollar accelerated share repurchase transaction agreement the Company entered into with Morgan Stanley on February 6, 2017 to repurchase shares of the Company’s Common Stock for an initial payment of $350 million.

About HARRIS CORPORATION (NYSE:HRS)

Harris Corporation is a technology company that provides products, systems and services that have defense and civil government applications, as well as commercial applications. It offers its products and services to government and commercial customer. It operates in four segments: Communication Systems, which serves markets in tactical communications and defense, and public safety networks; Space and Intelligence Systems, which provides complete Earth observation, environmental, geospatial, space protection, and intelligence solutions from advanced sensors and payloads, as well as ground processing and information analytics; Electronic Systems, which offers a portfolio of solutions in electronic warfare, avionics, wireless and technology, among others, and Critical Networks, which provides managed services supporting air traffic management, energy and maritime communications, and ground network operation and sustainment, as well as information technology (IT) and engineering services.

HARRIS CORPORATION (NYSE:HRS) Recent Trading Information

HARRIS CORPORATION (NYSE:HRS) closed its last trading session 00.00 at 110.00 with 847,093 shares trading hands.