FOR IMMEDIATE RELEASE                                         CIV
TUESDAY, DECEMBER 6, 1994                          (202) 616-2765
                                                         TDD (202) 514-1888

                                     
                      U.S. SETTLES FALSE CLAIMS CASE
                     INVOLVING TELEDYNE FOR $500,000 


     WASHINGTON, D.C. - - Teledyne Industries Inc. of Los
Angeles, California, will pay the United States $500,000 to
settle allegations that its subsidiary substituted parts and
failed to perform required tests on 180 UPM-137 radar test sets
it built for the Navy, the Department of Justice said today.
     Assistant Attorney General Frank Hunger of the Civil
Division said the units were manufactured at Teledyne Electronics
in Newbury Park, California, a Teledyne unit, during the 1980's
and were used by the Navy to calibrate and maintain
interrogators, transponders, coder-decoders, video display
systems, and automatic data systems for friend or foe
identification systems used aboard ship.  
     Teledyne told the Inspector General of the Department of
Defense in November 1991 of production irregularities in the UPM-
137 program under DOD's Voluntary Disclosure Program.    
     A subsequent investigation by the government concluded that
Teledyne substituted non-conforming parts in the equipment and
fraudulently performed burn-in, quality, and performance tests on
the radar test sets.
     Hunger said today's settlement is an example of the
Department's determination to insure that the government is
compensated for contractual irregularities. In July 1993,
Teledyne paid the government $10 million to settle a dispute
concerning defective friend or foe identification equipment used
in the Army's Stinger missile system.  
     The case was investigated by the FBI's Ventura, California,
office, the Naval Criminal Investigative Service's Regional Fraud
Unit at Upland, California, the Defense Criminal Investigative
Service's office at Van Nuys, California, and the Army's Criminal
Investigative Command's Fraud Field Office at Laguna Niguel,
California.  
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94-683