Calian Technologies Ltd.
TSX : CTY

Calian Technologies Ltd.

March 31, 2009 08:02 ET

Calian Advised of Pending 5 Year $100 Million Contract Renewal With DND

(All amounts in this release are in Canadian Dollars)

KANATA, ONTARIO--(Marketwire - March 31, 2009) - Calian Technologies Ltd. (TSX:CTY) has been informed that approval has been granted by Treasury Board for the Department of National Defence (DND) to award Calian's BTS division a limitation of expenditure contract for the continued provision of Training and Capability Development Support Services for the Directorate of Land Synthetic Environments (DLSE), which is headquartered at CFB Kingston, Ontario and maintains satellite operations across Canada.

Subject to final reviews and adjustments, the initial five-year contract is expected to be valued at slightly over $100 million. The contract also contains a number of options for an additional four years for a potential total duration of nine years. This Contract will allow Calian to continue to provide constructive simulation training to the Army through DLSE, in a relationship that first began in 1995 and if used to its fullest extent, will represent a significant increase in Calian's current level of support to DLSE over its term. The new contract is expected to start in the coming quarter after finalization of outstanding logistical and administrative details and will replace the existing contract which had a remaining backlog of approximately $23 million with a current consumption profile of less than 2 years.

Under the terms of the expected contract, Calian will provide support to various groups and organizations within the Canadian Forces who require training in the planning and execution of both simple and complex military operations in cost effective synthetic environments at various simulation sites across Canada. These synthetic environments are frequently created using a variety of computer simulation systems. These simulations are also used in experiments and capability development activities that provide DND leadership with data and insights to assist in determining future force structures and defence capabilities. In the majority of cases, Calian staff assume responsibility for integrating the efforts of all parties to provide a complete and appropriate synthetic environment for the activity being supported.

About Calian

Calian sells technology services to industry and government in Canada and around the world. Calian provides customers with ready access to an exceptional team of engineers, telecommunications and technology professionals, health care professionals and other highly qualified staff. The Business and Technology Services Division augments customer workforces with flexible short and long-term placements, recruitment and outsourcing of engineering, health care professionals and other skilled professionals. The Systems Engineering Division plans, designs and implements solutions for many of the world's space agencies and leading communications satellite manufacturers and operators, as well as providing contract manufacturing services for customers in North America.

DISCLAIMER

Certain information included in press releases on this site is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the impact of price competition; the dependence on new product development; the impact of rapid technological and market change; the ability of Calian to integrate the operations and technologies of acquired businesses in an effective manner; general industry and market conditions and growth rates; international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; and the impact of consolidations in the business services industry. For additional information with respect to certain of these and other factors, see the reports filed by Calian with the Ontario Securities Commission. Calian disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. No assurance can be given that actual results, performance or achievement expressed in, or implied by, forward-looking statements within this disclosure will occur, or if they do, that any benefits may be derived from them.

Contact Information

  • Calian Technologies Ltd.
    Ray Basler
    President and Chief Executive Officer
    306-931-3425
    or
    Calian Technologies Ltd.
    Jacqueline Gauthier
    Chief Financial Officer
    613-599-8600
    ir@calian.com
    www.calian.com