Adacel signs $ 20,8 M contract with Lockheed Martin

Montreal January 14, 2002: Adacel Inc. announces the company has signed a US $ 20.8 million contract with U.S. aerospace giant Lockheed Martin Company.

The High Tech development company with offices in near Montreal will play a key role in the modernization of the international air traffic management system used in US controlled airspaces over the Pacific, Atlantic and Arctic oceans.

Adacel will provide Lockheed Martin with software which will increase air navigation efficiency and capacity in the vast airspaces between continents.

“Our system will revolutionize international air traffic management,” says William Lang, Adacel’s Vice President - Air Traffic Management. “This contract is important for us because it will launch our Company into the major leagues of the air traffic management industry for both oceanic and continental airspaces. The market is worth an estimated $ 1 billion over the next five years, with software development being a significant component – our field of specialization.”

The announcement comes on the heals of the decision taken by the Federal Aviation Administration (FAA), in the United States, to invest US $ 217 million in a program to improve its international air traffic management systems. Lockheed Martin has been chosen for the job of prime contractor. The first stage of this modernization plan will provide the US oceanic control centres in New York, Oakland and Anchorage with the latest technology available in air traffic management.

Successful experience in New Zealand

Adacel was able to demonstrate its expertise to Lockheed Martin and the FAA based on earlier successful implementation of the technology in New Zealand where Airways Corporation, which manages air traffic over a vast area of the South Pacific Ocean has been using the system since 1999.

“The technology provides significant benefits to its users,” explains Mr. Lang, including fuel savings for the airlines and shorter traveling times for passengers because of a better choice in traveling routes. Until now, air traffic control communications and tracking were based on voice reports given by pilots, which necessitated larger separation distances between aircraft. Under the new system, aircraft will be tracked directly using satellite and computer based communications.”

Adacel expects to work with Lockheed Martin to address similar project opportunities throughout the world. Both companies think that the FAA’s decision will prompt other countries to do the same and speed-up implementation of these advanced systems to harmonize international air traffic management.

“Being selected by the largest civil aviation authority in the world is an exceptional acknowledgement for Adacel technology. And since this application is so demanding, our success will have a favorable impact on other products we have developed.”

Job creation

Mr Lang indicated that the new mandate will further employment of new personnel in Saint-Laurent, where Adacel has concentrated its development activities for air traffic management.

Adacel is an entity of Adacel Technologies, an Australian public corporation and world leader in the design of advanced software and systems for aviation, telecommunications, defense and e-business.

Adacel was established in Canada in 1998, when Adacel Technologies acquired an exclusive license to the CAE developed oceanic air traffic management software and took over the trademarks and part of the assets of the bankrupt ATS Aérospatiale, a high-tech company located in Saint-Bruno, on the South Shore of Montreal. Last year, Adacel acquired its major American competitor for air traffic control simulators and now has production and marketing offices in the US.

The company has made substantial investments in research and development of advanced air traffic management systems and simulators for training air controllers which are its two main lines of activity. Currently, Adacel employs approximately 100 people in its two Montreal ares facilities.

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Further Information :

At Adacel Inc: Linda Martel (450) 672-3888, ext. 328

Press Relations: Communications Elizabeth Boileau (450) 653-0712

More about Adacel - http://www.adacel.com/

More about Lockheed Martin - http://www.lockheedmartin.com/