(Paris Air Show, June 18, 2001) CMC Electronics has won the CP-140 Aurora Navigation and Flight Instruments Modernization Project for the Canadian Department of National Defence (DND). The Company will act as prime contractor, systems integrator and avionics management systems supplier for this CAN$58 million contract. As prime contractor, CMC Electronics will have total responsibility for a turnkey project that provides proven avionics equipment and significantly enhanced systems reliability, to support existing missions, while providing a clear growth path to meet future performance requirements and incremental system upgrades.

Jim Close, President and CEO, CMC Electronics, stated: "We are very proud that the Canadian Government has chosen our product as the most technically advanced and cost-effective solution. This selection will provide leverage for us in bidding other contracts worldwide dealing with P-3 (the CP-140 is a P-3 derivative) aircraft programs. The global P-3 upgrade market is estimated at over $1.0 billion. The Canadian CP-140 project award, coupled with our contract win to provide the U.S. Customs Service with our Flight Management System for their P-3 surveillance aircraft fleet, places us in a good, competitive position to secure an important share of the world market."

This DND program is a major initiative aimed at sustaining the CP-140's long-term capabilities. This long-range patrol aircraft must remain capable of supporting combined multinational missions as well as independent assignments in both domestic and international, civilian and military situations. The Canadian-designed system will provide DND with a solution that is both forward looking and ensures compatibility and interoperability with Canada's allies.

Close added: "As a result of this CP-140 award, about 60 person years of employment will be maintained and roughly 92 person years of employment will be created in Canada over the next two years, between CMC Electronics and our suppliers."

CMC Electronics has earned an international reputation for the design and production of innovative, highly reliable military and commercial electronic systems for use on land, at sea and in the air. Systems integration, advanced avionics, navigation and communications systems and human factors engineering services, are the basis for the company's long-standing relationship with the armed forces of Canada, the United States and a host of other countries.

Janka Dvornik
Public Relations Manager
CMC Electronics Inc.
Telephone : (514) 748-3113
Fax : (514) 748-3184
Janka.Dvornik@cmcelectronics.ca

Al Letcher 
Military Aviation Marketing Director
CMC Electronics Inc.
Telephone : (613) 592-7454
Al.Letcher@cmcelectronics.ca