CALIAN WINS A $400 MILLION DND SUPPORT SERVICES CONTRACT
Kanata, Ontario, December 15, 2004:Calian Technology Ltd. (TSX: CTY) has been awarded a limitation of expenditure contract by the Department of National Defence (DND) for the provision and management of Health Service Providers to supplement DND resources in Canada. The initial five-year contract is valued at more than $400 million. The contract also contains options for an additional five-year period, which if exercised could more than double the total value of the contract.
Under the contract terms, Calian's Business and Technology Services Division will provide a Central Program Management Office in its Kanata facility and two Regional offices in Halifax and in Edmonton. These offices will manage and support Healthcare Service providers in approximately 36 different DND Bases across Canada. Calian will supply medical professionals including Physicians, Medical Specialists, Nurses, Dentists, Physiotherapists and Psychologists. Calian will be a key player in ensuring the continued provision of quality health services to members of the Canadian Forces.
"Calian is very excited about adding this new opportunity to support the Department of National Defence to the growing list of defence support services we have with DND. This new contract will allow Calian to complement and build upon the experience we have gained over the years in providing Program Management and Program Delivery Services to the Canadian Forces in projects like the Army Simulation Centre (press release dated December 17, 2003). In awarding this Contract to Calian, DND has once again recognized the value of our service and the expertise of our personnel," said Tom Coates, Vice-President and General Manager Business and Technology Services.
"This contract complements our growing list of support services provided to DND. When combined with our other long-term contracts, we now have a significant level of backlog that will provide for a stable base of revenues for years to come", stated Ray Basler, President and Chief Operating Officer. "I commend the Business and Technology Services Division team for their exceptional efforts in meeting the requirements and realizing this win."
"During the coming months Calian will focus on the successful transition of this contract, with full scale operations beginning thereafter" stated Jacqueline Gauthier, Chief Financial Officer. "Although margins on this contract are expected to be lower than traditional Business and Technology Services Division levels, this project will obviously have a significant long-term impact on both revenues and contribution. We will have to progress further in the transition phase to be able to determine the overall scale and the rate of implementation. At that time we will be in a better position to assess the impact on our previously issued guidance for Fiscal 2005."
Calian will hold a conference call at 10:00 AM today to answer questions regarding this contract. The follow-on press release will be issued providing the details of this conference call.
About Calian: Calian Technology Ltd. (TSX:CTY) sells technology services to industry and government in Canada and around the world. Calian provides customers with ready access to an exceptional team of engineers, telecommunications and technology professionals, and other highly qualified staff. The Business and Technology Services Division augments customer workforces with flexible short and long-term placements, recruitment and outsourcing of engineering and other skilled professionals. The Systems Engineering Division plans, designs and implements solutions for many of the world's space agencies and leading communications satellite manufacturers and operators, as well as providing contract manufacturing services for customers in North America.
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Larry O'Brien
Chief Executive Officer
613.599.8600
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