<TABLE>
<CAPTION>
  TRACOR
  COMPUTATION OF INCOME PER COMMON AND COMMON EQUIVALENT SHARE
  (in thousands, except per share amounts)
  
                                                              Three Months Ended     Nine Months Ended
                                                                 September 30,         September 30,
                                                              ------------------     -----------------
                                                               1996          1995    1996        1995
<S>                                                         <C>          <C>      <C>        <C>                       
  Primary:
  Net income                                                 $11,306      $ 7,669  $26,964    $20,722 
  
  Pro forma adjustments, net of income taxes:
     Interest expense                                             -           384      424      1,410 
     Investment income                                            -            -        -          -  
                                                            --------     -------- --------   -------- 
       Pro forma net income                                  $11,306      $ 8,053  $27,388    $22,132 
                                                            ========     ======== ========   ======== 
  Weighted average common shares outstanding                  24,345       13,932   18,062     12,919 
  
  Weighted average common share equivalents:
     Assumed exercise of warrants                              1,228       12,242    7,723     12,532 
     Assumed exercise of options                               1,719        1,179    1,645      1,059 
     Assumed purchase of common shares for treasury           (1,022)      (2,791)  (2,521)    (2,636)
                                                            --------     -------- --------   -------- 
     Net weighted average additional shares issuable           1,925       10,630    6,847     10,955 
                                                            --------     -------- --------   -------- 
        Common and common equivalent shares                   26,270       24,562   24,909     23,874 
                                                            ========     ======== ========   ======== 
  
  Income per common and common equivalent share                 $.43         $.33    $1.10       $.93 
                                                                ====         ====    =====       ==== 
  Fully diluted:
  
  Net income                                                 $11,306      $ 7,669  $26,964    $20,722 
  
  Pro forma adjustments, net of income taxes:
     Interest expense                                             -           371      360      1,087 
     Investment income                                            -            -         -         -  
                                                            --------     -------- --------   -------- 
     Pro forma net income                                    $11,306      $ 8,040  $27,324    $21,809 
                                                            ========     ======== ========   ======== 
  
  Weighted average common shares outstanding                  24,345       13,932   18,062     12,919 
  
  Weighted average common share equivalents:
     Assumed exercise of warrants                              1,228       12,242    7,723     12,532 
     Assumed exercise of options                               1,719        1,179    1,645      1,059 
     Assumed purchase of common shares for treasury             (929)      (2,791)  (2,490)    (2,636)
                                                            --------     -------- --------   -------- 
     Net weighted average additional shares issuable           2,018       10,630    6,878     10,955 
                                                            --------     -------- --------   -------- 
        Common and common equivalent shares                   26,363       24,562   24,940     23,874 
                                                            ========     ======== ========   ======== 
  
  Income per common and common equivalent share                 $.43         $.33    $1.09       $.91 
                                                                ====         ====    =====       ==== 
</TABLE>