Ottawa, Ontario May 31, 2010 - Calian Technologies Ltd. (TSX:CTY) is pleased to report that its Business and Technology Services division has been notified that it has been selected to deliver maintenance services in support of the Department of National Defence's (DND) activities at five main Canadian Forces Army bases across Canada in Edmonton, Alberta; Shilo, Manitoba; Petawawa, Ontario; Valcartier, Quebec and Gagetown, New Brunswick. Calian will carry out the full range of maintenance services on Class "B" vehicles under a single contractual arrangement. This requirement will be for a two-year period plus a one-year option and encompasses all maintenance, mandated modifications and inspections, as well as preservation of equipment across the Army. The details of the contract should be finalized this week and we expect to begin delivering the services this August.
The base two-year contract is estimated to be worth $15 million, with the overall value increasing to $24 million if the option year is exercised. Under the contract, Calian will augment military vehicle technicians through the provision of vehicle and trailer maintenance services. Calian will plan, hire and deploy technicians to deliver the various vehicle and trailer maintenance services at these five main Army bases.
"This requirement is in addition to the work that Calian staff are already providing in Wainwright on Class 'B' vehicles and goes hand in hand with the Leopard Tank maintenance work we are currently performing in Edmonton, and the Light Armoured Vehicle (LAV) maintenance we have previously performed in Wainwright. We appreciate DND's confidence in our abilities as well as the opportunity to expand our maintenance services across Canada" said Tom Coates, Vice President and General Manager, Business and Technology Services.