COM DEV Begins Work Under New Long-Term Agreement with Major Customer

COM DEV International Ltd. (TSX:CDV), a leading manufacturer of space hardware subsystems, today announced that it has signed a long-term agreement (LTA) to supply satellite switch products to a major prime contractor. The contract assures COM DEV of $8.5 million of switch orders over the two-year duration of the agreement.

Under the LTA, COM DEV and its customer have agreed in advance on pricing, general requirements, and other general terms for switch orders anticipated over the contract period. For the customer, this arrangement secures an important aspect of its supply chain, offers favourable pricing and turnaround times, and enables efficiencies through the use of standardized components.

For COM DEV, the LTA facilitates production planning, improves the efficiency of the sales process, and assures the Company of a specified sales volume of switches, including its latest generation switch product.

“Today’s announcement is a recognition both of our leadership position in switches and the trust we have earned with this customer,” said Mike Williams, president of COM DEV’s products division. “We have been working to standardize key aspects of our product line wherever possible so that our customers can place orders like they are selecting from a catalogue. This approach benefits both parties in the areas of design, procurement, production and overall costs.”

About COM DEV

COM DEV International Ltd. (www.comdev.ca) is a leading global provider of space hardware and services. The Company has a staff of more than 1,250, annual revenues of over $200 million, and facilities in Canada, the United Kingdom, the United States, India and China. COM DEV designs, manufactures and integrates advanced products, subsystems and microsatellites that are sold to major satellite prime contractors, government agencies and satellite operators, for use in communications, space science, remote sensing and defence applications. The Company has won contracts to supply its equipment on over 950 spacecraft. COM DEV’s majority-owned subsidiary, exactEarth Ltd., provides satellite data services for global maritime surveillance.