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Electronics Production | November 28, 2005

COM DEV to acquire elements of EMS space & technology division

Acquisition expands COM DEV`s participation in the strategically important government market.
COM DEV International Ltd. announced that it has reached an agreement with MacDonald, Dettwiler and Associates Ltd. of Richmond, B.C to purchase certain elements of the EMS Space & Technologies Division, as part of a transaction in which MDA is acquiring the assets of EMS Montreal from EMS Technologies of Atlanta, Georgia. The purchase price to be paid to MDA is $5.0 million CDN, plus an adjustment for working capital.

There is a provision in the agreement for an additional $1.0 million CDN 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 expects the acquired businesses to add about 10% to its revenue base, beginning in 2006, and to contribute to profitability in year one. The Company 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. The transaction is expected to close within the next 30 days at which time further details will be provided.

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