Optimal Geomatics Inc.

Optimal Geomatics Inc.

November 09, 2005 14:34 ET

Optimal Geomatics to Acquire MD Atlantic Technologies, Inc. Business for US$5.1 million

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 9, 2005) - Optimal Geomatics Inc., (TSX VENTURE:OPG) ("Optimal") a geomatics service and software provider to the power line and pipeline utility sector, announced today that the company has entered into an agreement with MacDonald, Dettwiler and Associates Corp. ("MDA") and its subsidiary MD Atlantic Technologies, Inc. ("ATI") to purchase certain non-core LiDAR assets at a purchase price of US$5.1 million, subject to adjustments.

ATI, located in Huntsville, Alabama, is a leading supplier of geospatial information, digital aerial mapping data, airborne laser survey (LiDAR) information, geospatial data, photogrammetrically engineered map products, and GIS data sets to numerous business and governmental organizations throughout the United States.

The acquisition is expected to close shortly. The purchase price will be funded by a 15 month US$3.0 million note payable to ATI and a CDN$2.0 million bridge loan provided by a private company owned by Greg Peet, a Director of Optimal, and from available cash. ATI's obligations are being guaranteed by MacDonald, Dettwiler and Associates Corp., a privately held U.S. corporation.

Commenting on behalf of Optimal Geomatics, Colum Caldwell, President & CEO, stated, "We project that this acquisition will result in additional revenues of CDN$6.0 million for Optimal in 2006, while reducing overall profitability by up to CDN$1.0 million this acquisition is strategic for the longer term, it is not expected to be accretive in 2006. It is further expected that it will take 18 to 24 months to fully integrate the ATI business with Optimal's existing business. The integration of our business models will allow Optimal to build upon its strategic objective of vertical integration, enabling it to focus on an enterprise wide business model encompassing surveying, remote sensing, mapping, and GIS."

"This acquisition is expected to bring our consolidated revenues for the group to over CDN$20 million keeping us on target to achieve increased revenues of CDN$14.0-15.0 million in our core Optimal Geomatics business in 2006 with core business comparable profits to that of 2005. MDA, ATI and Optimal have worked closely together for two years, sharing a common vision and strong business values. This acquisition reflects Optimal's open approach to the right opportunities."

Optimal Geomatics specializes in providing highly accurate geomatic services and software to a customer-base, which is primarily composed of Electric power line and Gas pipeline utilities. Geomatics is best described as the acquisition, storage, management, retrieval, manipulation, and distribution of spatial or geographically referenced data. Optimal employs a number of acquisition systems, including its proprietary technology, for aerial data acquisition, and applies innovative technology, techniques, and expertise for in-house processing. The Company's unique mapping products and services help utilities reduce cost, improve efficiency, and better-manage their assets by turning raw data into highly valuable geospatial information and engineering reports. Optimal's customers include many of the major utilities across North America and the United Kingdom.

This document may contain forward-looking statements. These statements present management's expectations, beliefs, plans, and objectives regarding future events and conditions and, as such, involve inherent risks and uncertainties. Actual results could be significantly different from those projected.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this new release.

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