Com Dev to Acquire Elements of EMS' Space & Technology Division in Deal with MDA

CAMBRIDGE, ON, Nov. 28, 2005/Satnews Daily/ — Com Dev International Ltd. (TSX:CDV) has announced that it has reached an agreement with MacDonald, Dettwiler and Associates Ltd. (MDA) of Richmond, B.C to purchase certain elements of the EMS Space & Technologies Division.

The deal, according to Com Dev, is part of a transaction in which MDA is acquiring the assets of EMS Montreal from EMS Technologies of Atlanta, Georgia.

Con Dev said it is paying MDA $5.0 million CDN, plus an adjustment for working capital. Under the agreement, an additional $1.0 million CDN is to be paid to MDA if certain future conditions are met before January 1, 2007. Transaction fees are expected to add an additional $0.7 million to the total purchase price.

Com Dev said it expects the acquired businesses to add about 10 percent to its revenue base, beginning in 2006, and to contribute to profitability in year one. Com Dev intends to finance the purchase price through an acquisition line of credit or other bank debt.

The business elements included in the transaction include the Space Science and Optical Payload operations, based in Ottawa, and the Search and Rescue transponder product line.

“By enhancing our position in the civil space market, this acquisition provides an opportunity to diversify our revenue base while at the same time strengthening our core space business, and as a result, is aligned with our stated strategic direction,” said Com Dev CEO John Keating.

Com Dev said the transaction is expected to close within the next 30 days.

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