MacDonald Dettwiler To Acquire Space Robotics Division of Spar Aerospace

Brampton, Ontario Operations to Expand Company's Space Technology Business

Vancouver, B.C. MacDonald, Dettwiler and Associates today announced that it has entered into an agreement to purchase the Space Robotics Division of Spar Aerospace, located in Brampton, Ontario.

The Space Robotics Division is best known for the Canadarm for NASA's Space Shuttle and the Mobile Servicing System, Canada's contributions to the International Space Station. The division employs over 450 people in Brampton and generates an average $80 million in annual revenue. The Space Robotics Division is recognized as the world's leading supplier of space robotics technology, with a record of over 50 successful space missions in the 1980s and 1990s.

Daniel E. Friedmann, President and CEO of MacDonald Dettwiler said, "This agreement will see the amalgamation of Spar's world-class space robotics capabilities, with MDA's market-leading satellite ground systems, space software and space mission prime capabilities. Together, they will form an unparalleled space prime contractor capability which has the expertise to serve Canada's national interests. It will give our country a significant lead in the competitive international market for space systems and generate Canadian employment through increased high-technology export sales."

The Space Robotics Division will continue to operate in Brampton, Ontario under the existing management team headed by Vice President and General Manager Mag Iskander.

Mr. Friedmann emphasised the commitment of MacDonald Dettwiler to expanding the technology base and the market for the Space Robotics Division. "This is a world-class operation with highly-skilled people. We will continue to invest in the future growth of this business in Canada.", he said.

The acquisition is expected to be completed by the end of April, 1999, subject to customary closing conditions.

As part of the agreement, MacDonald Dettwiler will also acquire Spar's interest in RADARSAT International (RSI), the RADARSAT-1 data distributor, bringing the Company's ownership position of RSI to 85%. With headquarters in Richmond, B.C., RSI employs over 85 people and generates revenues of approximately $20 million per year. RSI is a key component of MacDonald Dettwiler's information business strategy.

MacDonald Dettwiler is one of Canada's leading information and technology companies, with a focus to become Canada's leading space company and to become a world-class provider of information, products and services. After the completion of the acquisition, MacDonald Dettwiler will employ about 1,400 people from coast to coast in Canada at several offices in British Columbia, Brampton, Ottawa and Halifax. The Company also maintains multiple foreign offices.