Textron Systems & SED Systems Sign Memorandum of Understanding for TAPV Project

SASKATOON, Saskatchewan – April 3, 2012 — Textron Systems Canada Inc., a Textron Inc. (NYSE:TXT) company, today announced that it has signed a memorandum of understanding (MoU) with SED Systems (SED), a division of Calian Ltd, for possible work on the Textron Tactical Armoured Patrol Vehicle (TAPV) for the Canadian Forces.  Textron has submitted a proposal to supply 500 vehicles to the Canadian Army, with an option for up to 100 additional TAPVs all outfitted with SED fabricated components.

SED, a new supplier to Textron, is a 250 employee business based in Saskatoon, Saskatchewan.  Established in 1965 and acquired by Calian in 1990, SED is a leading systems designer and integrator of communications and control solutions and a provider of specialized contract manufacturing services to defence and security customers.  SED would fabricate the enclosure assemblies, with an incorporated SED Systems USB adapter, on the power distribution panels on each Textron TAPV.  The MoU with Textron represents a substantial opportunity for SED to sustain and create employment, providing a positive effect on Saskatoon’s local economy.

 “The Government of Canada has stated it wants to procure the best possible equipment for the Canadian Army. We have engaged great suppliers like SED Systems to ensure that the Textron TAPV we propose to deliver will be the best option to protect Canadian soldiers,” said Neil Rutter, general manager of Textron Systems Canada. 

“SED is very pleased to have been selected by Textron for the manufacture of key electronic components of its TAPV vehicle solution,” stated Patrick Thera, president of SED, “We have a long history of providing manufacturing services for this type of technology, and this opportunity enables us to develop a growing relationship with another major supplier of military vehicles.”

The Textron TAPV is the most reliable and technologically advanced vehicle of its kind, and it draws on the company’s more than 45 years of experience in the design and production of armoured vehicles.  A technology readiness level 8 vehicle, the Textron TAPV will provide the Canadian Forces with the optimal balance of survivability, mobility and versatility, while delivering outstanding performance in the world’s most challenging environments. Extensively tested to confirm ballistic, blast, mobility and reliability levels, the Textron TAPV has been engineered to meet and exceed Canada’s requirements. 

If awarded the TAPV contact, Textron Systems Canada will become the prime contractor for the program; and through its Industrial and Regional Benefits obligations to Canada Textron expects to bring new opportunities to other Canadian companies. 

Textron currently employs more than 1,800 Canadians at its Textron Systems Canada, Bell Helicopter and Kautex facilities in Canada. Textron companies have procured more than $3.5 billion of materials manufactured by Canadian supplier companies in the past three years.

For additional Textron information, visit textrontapv.ca and textronmarineandland.com .

About Textron Systems

Textron Systems has been providing innovative solutions to the defense, homeland security and aerospace communities for more than 50 years. Headquartered in Wilmington, Mass., the company is known for its unmanned aircraft systems, advanced marine craft, armored vehicles, intelligent battlefield and surveillance systems, intelligence software solutions, precision smart weapons, piston engines, test and training systems, and total life cycle sustainment and operational services. Textron Systems includes AAI Logistics & Technical Services, AAI Test & Training, AAI Unmanned Aircraft Systems, Advanced Systems, Aerosonde, ESL Defence, Lycoming Engines, Medical Numerics, MillenWorks, Overwatch, Textron Defense Systems and Textron Marine & Land Systems. To serve Canadian customer requirements, the company established Ottawa-based Textron Systems Canada. More information is available at www.textronsystems.com .

About Textron Inc.

Textron Inc. is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Bell Helicopter, Cessna Aircraft Company, Jacobsen, Kautex, Lycoming, E-Z-GO, Greenlee, and Textron Systems. More information is available at www.textron.com .

About Calian

Calian employs over 2300 people with offices and projects that span Canada, U.S. and international markets.  The company’s capabilities include the provision of business and technology services to industry and government in the health, operations and maintenance, IT services and training domains as well as the design, manufacturing and maintenance of complex systems to the communications and defence sectors.  Our goal is to be the best company to work for, buy from and invest in.

Calian’s Systems Engineering Division (SED) is a leading systems designer and integrator of communications and control solutions and a provider of contract manufacturing services to defence and security customers.  SED designs robust embedded communications, control and monitoring products for the most demanding applications and environments and specializes in the contract manufacture of small to medium volume, highly reliable, difficult to build and test electronic, electro-mechanical and cable/harness assemblies typical in military vehicles.  The company has been delivering compelling long-term value and Industrial and Regional Benefits in the Canadian defence sector for approximately 30 years. 

For more information please visit www.sedsystems.ca and www.calian.com/

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Certain statements in this press release are forward-looking statements which may project revenues or describe strategies, goals, outlook or other non-historical matters; these statements speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements. These statements are subject to known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to, the risk that Textron’s TAPV proposal will not win the contract award; performance issues with key suppliers, subcontractors or business partners; changes in worldwide economic or political conditions that impact demand for our products, interest rates or foreign exchange rates; and changes in foreign military funding priorities or budget constraints and determinations, or changes in government regulations or policies on the export and import of military and commercial products.

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Textron Systems’ businesses develop and integrate products, services and support for aerospace and defense customers, as well as civil and commercial customers including those in law enforcement, security, border patrol and critical infrastructure protection around the globe. Harnessing agility and a broad base of expertise, Textron Systems’ innovative businesses design, manufacture, field and support comprehensive solutions that expand customer capabilities and deliver value.

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Photo Caption: Patrick Thera, president, SED Systems Saskatoon (left) and Neil Rutter, general manager of Textron Systems sign a memorandum of understanding for possible work on the Textron Tactical Armoured Patrol Vehicle (TAPV) for the Canadian Forces.
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