MDA joins General Dynamics Canada Team to Deliver Halifax Class Modernization

Released on Monday, March 17, 2008

OTTAWA, Ontario � General Dynamics Canada today announced that Vancouver-based MacDonald, Dettwiler and Associates Ltd. (TSX: MDA) has joined the CSI Halifax Team that is bidding on the Canadian Navy's $1.1 billion Halifax Class Modernization - Combat Systems Integration (HCM-CSI) program to upgrade Canada's fleet of twelve frigates. Led by General Dynamics Canada, MDA is the latest addition to the team that also includes Thales, Raytheon Integrated Defense Systems and General Dynamics Advanced Information Systems.

As the Canadian Navy's existing prime contractor for the Naval Combat Operator Trainer, MDA has an intimate knowledge of the combat systems on both the HALIFAX and IROQUOIS class fleets. This experience will be leveraged to ensure the Canadian fleet has the ongoing tools and skills needed to maintain maximum operational availability during the modernization program and into the future. MDA will also utilize its current experience to maintain training-system currency and contribute to In-Service Support during the legacy period, and seamlessly transition the systems to the new Command and Control System (CCS) configuration.

With a coast-to-coast Canadian presence including facilities in Dartmouth, Nova Scotia; Sainte-Anne-de-Bellevue, Quebec; Aurora, Brampton and Ottawa, Ontario; and Vancouver and Victoria, B.C., MDA further strengthens the Canadian footprint of the CSI Halifax Team, which is leveraging the combined talents of more than 6,000 Canadian-based employees to offer the Navy a uniquely Canadian solution.

Canada's twelve HALIFAX Class frigates, which were commissioned between 1992 and 1996, form the backbone of the Canadian Navy's surface combat force. The ships are now in need of an upgrade to handle naval threats that today are faster and stealthier. The CSI program is critical to ensuring that Canada's Navy has the enhanced command and control capabilities to lead domestic and multi-national maritime operations. MDA's Maritime Command Operational Information Network (MCOIN), already operational with the Canadian Navy, will be integrated with the CSI Halifax Team's state-of-the-art customized CCS provided by Thales in a multi-level secure environment to provide a proven, flexible and scaleable capability.

As prime for HCM-CSI, General Dynamics Canada is leveraging 60 years of large scale Canadian program management, CMMI Level 5 systems engineering and integration expertise, and significant in-country resources�capabilities critical to successfully delivering the complex, multi-decade program to the Canadian Navy.

"The HCM-CSI program is a generational opportunity to ensure that the Canadian Navy can continue its proud tradition of providing for Canada's security at home and showcasing Canadian maritime leadership to the world into the 21st century," said John Watts, president of General Dynamics Canada. "With the addition of MDA we further strengthen the team by adding the training tools and Canadian expertise critical to implementing this change with continuity while ensuring ongoing operational fleet availability for the Canadian Navy."

"MDA believes that joining our world-class naval capabilities with the highly complementary capabilities offered by the CSI Halifax Team makes our combined solution more comprehensive," said David Hargreaves, vice-president of MDA's Integrated Information Solutions business unit. "MDA's team of software and systems engineers has been living with the existing combat systems for years, giving us the ability to understand the operational needs and develop solutions with the Canadian Navy. As part of the CSI Halifax Team, we are uniquely positioned to continue to provide that experience and expertise and to deliver this project to the Canadian Navy."

The Canadian government has issued a Request for Proposal (RFP) to upgrade the frigates, including the HCM-CSI program that will replace the Command and Control system and provide enhanced support to the Command Task Group (CTG) at sea. Bidding companies have 120 days to respond to the RFP.