DEW Engineering and Development Awarded CDN$29.4 Million Contract Award for Canadian M113 Long Term Support Contract

OTTOWA, Canada, December 21 - DEW Engineering and Development ULC of Ottawa, Ontario is pleased to
announce the award of a CDN$29.4 Million contract by the Department of
National Defence for the Long Term Engineering and Support Services to the
M113 Fleet.

This contract covers a period of four years with two one-year option
periods. The scope of work provides Technical Engineering and Maintenance
Services (TEMS), Integrated Logistics Support (ILS), Repair and Overhaul
(R&O) services and support spares, as well as Battle Damage Repair, on an
as-required-basis for the M113 Family of Vehicles (FOV).

"This is the corner stone of our strategic plan to work with OEMs to
provide long term support for military fleets in Canada in support of Canada
First Defence Strategy and policy" says DEW President, Timothy Dear.

BAE Systems Land & Armaments, the M113 vehicle OEM, and DEW have a
teaming agreement that designates DEW as the exclusive representative to sell
M113 FOV products and services for Canada. Both companies have been working
on the M113 Life Extension Program since 1996 through the Definition Contract
(1996 to 2001) and Production Support Contract (2000-2009). As part of the
Production Contract, a total of 274 vehicles have been upgraded from the
M113A2 version to the M113A3 FOV and MTV FOV in nine different variants. A
number of these vehicles are presently deployed in Afghanistan.

"BAE Systems is pleased to help DEW Engineering provide long term support
for Canada's M113s and MTVL fleet, and to help meet Canada's security
requirements, said Joe McCarthy, vice president and general manager, Heavy
Brigade Combat Team (HBCT) Systems for BAE Systems. "The M113A3 and MTVL are
proven systems in a wide variety of threat environments."

DEW was established in 1978 to provide a vehicle systems engineering and
manufacturing capability for DND and other government agencies. Today DEW is
a growth oriented company employing more than 400 people in Ottawa, Ontario
and Miramichi, New-Brunswick. In addition to providing platform
ugrade/re-role services and vehicle or shelter militarization, DEW is
respected globally for providing innovative armour designs and solutions for
vehicle OEMs.

For further information: Guy Carrier, Director Support Programs & M113LE
Program Manager, telephone +1-613-736- 5100 Ext 218 or visit our website at
www.dewengineering.com/

For further information: Guy Carrier, Director Support Programs & M113LE Program Manager, telephone +1-613-736- 5100 Ext 218