Calian's SED Division Signs $8 Million Contract to Provide Two Earth Observation Antenna Systems to DND's Polar Epsilon 2 Project

OTTAWA, ONTARIO--(Marketwired - Sept. 27, 2016) - Calian Group Ltd. (TSX:CGY) is pleased to announce that its Systems Engineering Division (SED) has signed a contract to provide two Earth-observation antenna systems to MacDonald, Dettwiler and Associates Ltd. (MDA), in support of MDA's contract with the Canadian Department of National Defence's (DND) Polar Epsilon 2 project. The $8 million contract will start immediately for a four year period, with options for long term support.

Under the terms of this contract, SED will design, install and commission Radio Frequency (RF) antenna systems for MDA's ground systems to be installed in Nova Scotia and British Columbia for the dedicated reception of imagery from the RADARSAT Constellation satellite mission set to be launched in 2018. SED will also provide two years of in-service support post-installation.

"We are very pleased to be working with MDA and DND on this very critical program," said Patrick Thera, President of Calian's SED division, "this contract win reinforces SED's capability to develop high performance, critical access, antenna systems in support of Earth-observation missions."

"This project is an excellent example of the innovation being delivered by our SED division"," said Kevin Ford President and an CEO, "Evolution of our service lines is a key pillar of our growth strategy. Continuing to evolve our deep subject matter expertise in high performance antenna systems is critical to our ability to respond to future requirements in this sector."

About Polar Epsilon 2 (Source: www.news.gc.ca/web/article-en.do?nid=1086509)

The Polar Epsilon 2 project is part of a 'whole-of-government' effort to maintain and expand Canada's access to a domestic source of space-based Earth observation data. This project will provide mission continuity and deliver advanced capabilities beyond those delivered by the previous Polar Epsilon project. Polar Epsilon 2 will use data from the next generation of Canadian Earth-observation satellites, known as the RADARSAT Constellation Mission, set to be launched in 2018. The data obtained from the RADARSAT Constellation Mission will be used for various surveillance needs ranging from monitoring of ice flows within Canada's coastal waters, providing surveillance of Canada's ocean approaches; monitoring environmental conditions, such as floods and forest fires; and managing and mapping natural resources in Canada and around the world.

About MDA

MDA is a global communications and information company providing operational solutions to commercial and government organizations worldwide. MDA's business is focused on markets and customers with strong repeat business potential, primarily in the Communications sector and the Surveillance and Intelligence sector. In addition, the company conducts a significant amount of advanced technology development. MDA's established global customer base is served by more than 4,800 employees operating from 13 locations in the United States, Canada, and internationally. MDA is traded on the Toronto Stock Exchange under the symbol "MDA".

About Calian

Calian employs over 2,500 people with offices and projects that span Canada, U.S. and international markets. The company's capabilities are diverse with services delivered through two divisions. The Business and Technology Services (BTS) Division is headquartered in Ottawa and includes the provision of business and technology services to industry, public and government in the health, training, engineering and IT services domains. Calian's Systems Engineering Division (SED) located in Saskatoon plans, designs and implements complex communication systems for many of the world's space agencies and leading satellite manufacturers and operators. SED also provides contract manufacturing services for both private sector and military customers in North America.

(Source: www.news.gc.ca/web/article-en.do?nid=1086509)

For further information, please visit our website at www.calian.com, or contact us at ir@calian.com

DISCLAIMER

Certain information included in this press release 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. Such statements are generally accompanied by words such as "intend", "anticipate", "believe", "estimate", "expect" or similar statements. Factors which could cause results or events to differ from current expectations include, among other things: the impact of price competition; scarce number of qualified professionals; the impact of rapid technological and market change; loss of business or credit risk with major customers; technical risks on fixed price projects; general industry and market conditions and growth rates; international growth and global economic conditions, and including 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, please see the Company's most recent annual report and other 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.