Garda World Security Corporation
TSX : GW

Garda World Security Corporation

August 09, 2011 07:00 ET

Garda Awarded Largest Contract in Its History

5 year deal estimated at $650 million; Covers 15 Canadian airports including Pearson International

MONTREAL, QUEBEC--(Marketwire - Aug. 9, 2011) - Garda Security Group, Canada's premier security solutions provider and a subsidiary of Garda World Security Corporation (TSX:GW) announced today that The Canadian Air Transport Security Authority (CATSA) selected Garda to provide airport security screening services for the Central Region, which comprises 15 airports located throughout Ontario, including Toronto's Lester B. Pearson airport - the largest and busiest airport in Canada, handling close to 32 million passengers and 420,000 flights per year - and Canada's Capital, Ottawa's MacDonald Cartier Airport.

The five-year agreement valued in excess of $650 million is effective as of November 1, 2011 with an option to extend for up to an additional five years bringing the contract to 2022 with a potential value of $1.3 billion. More than 2,000 security screening officers will be employed under this contract.

"Since 2003, Garda has built with the Canadian Air Transport Security Authority a world class airport pre-board screening operation consistently delivering high quality service for the comfort and protection of the travelling public," said Chantal Baril, Garda's Vice-President of Screening Operations. "While contributing to National security, our position as the best operator in the industry enabled us to achieve the highest score in a very rigorous selection process to secure this contract."

"This five-year contract will provide Garda with a sustainable and predictable stream of long-term revenues with the potential to expand our screening services," said Marc-Andre Aube, COO, Security Solutions at Garda. "We will continue to build on our expertise and lead the way in a very dynamic environment while generating stronger cash flows and improved profit margins, more in line with our other private industry sector security contracts".

The new contract is expected to have a positive impact on the operating profit by Q4 of this year.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements in this press release may constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to Garda's future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be identified by terminology such as "may"; "will"; "should"; "expect"; "plan"; "anticipate"; "believe"; "intend"; "estimate"; "predict"; "potential"; "continue"; "foresee", "ensure" or other similar expressions concerning matters that are not historical facts. In particular, statements regarding the company's future operating results and operating profit and its objectives and strategies are forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, performance and business prospects and opportunities, which Garda believes are reasonable as of the current date. While management considers these assumptions to be reasonable based on information currently available to the company, they may prove to be incorrect. The company cautions the reader that the current adverse economic conditions make forward-looking information and the underlying assumptions subject to uncertainty and that, consequently, they may not materialize, or the results may differ from the company's expectations. Forward-looking information is also subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what Garda currently expects. These factors include the growth management, the market competition, the cost of financing, government regulations, the collective bargaining, currency fluctuations, the credit risk, the reputational risk and the financial covenants risk, many of which are beyond the company's control. Therefore, future events and results may vary significantly from what management currently foresees. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date.

ABOUT GARDA

Garda (TSX:GW) is a global provider of security solutions, cash logistics and global risk consulting. With headquarters in Montreal, Canada, the firm's 45,000 dedicated professionals, among the most highly qualified and best-trained in the industry, serve clients in countries throughout North America, Europe, Latin America, Africa, Asia, and the Middle East. Garda works with clients in a broad range of sectors and industries including financial institutions, retailers, manufacturers, insurance companies, governments, humanitarian relief organizations and the natural resources, construction and telecommunications. The company's decentralized management philosophy and structure encourages employees to be entrepreneurial and performance-driven in their approach to client service and the pursuit of excellence in all they do. Garda's global experts take the time to fully understand their clients' business goals and objectives in order to customize solutions with strong local engagement that meet their needs. As a result, clients can improve operational performance, meet their business obligations, and achieve their corporate objectives. With proven experience and a commitment to ensuring the highest ethical standards in everything the Corporation does, Garda has earned a reputation for integrity, leadership and uncompromising safety standards. Most importantly, businesses, governments, and individual clients place their trust in Garda. For more information, visit: www.gardaglobal.com, www.gardacashlogistics.com and www.garda-world.com.

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