Textron Systems & EVRAZ North America Sign Memorandum of Understanding for TAPV Project

REGINA, 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 EVRAZ North America (EVRAZ) of Regina, Saskatchewan 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 to be outfitted with Textron’s proprietary armour steel alloy supplied from EVRAZ.

As a proven supplier to Textron, EVRAZ would be an important Canadian supplier for the Textron TAPV program.  EVRAZ manufactures slab at its Regina facility that is used to produce Textron’s proprietary armour steel alloy. Textron Systems is also intending to use EVRAZ as a slab supplier for additional orders under the Armoured Security Vehicle and Afghanistan National Army vehicle programs. This arrangement would likely result in EVRAZ seeing additional orders from Textron over the next few years.

“The Government of Canada has stated it wants to procure the best possible equipment for the Canadian Army. We have engaged great suppliers like EVRAZ in Regina 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. 

“EVRAZ is proud to manufacture armour products in Canada for the upcoming TAPV program,” said Don Hunter, vice president, sales – EVRAZ Flat Products Group.  “We make unique materials that allow our customers to produce vehicles that are lighter weight, and have improved ballistic properties.”

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 EVRAZ

EVRAZ North America is a leading steel manufacturer built on the pedigree of successful steel companies – Oregon Steel, Claymont Steel and IPSCO. In North America, EVRAZ produces more than five million tons annually of flat, long, and tubular steel products for major markets including infrastructure, defense, energy and rail. Its manufacturing facilities are located in Portland, Ore.; Regina, Saskatchewan; Pueblo, Colo.; Claymont, Del.; Calgary, Camrose and Red Deer, Alberta; and Surrey, British Columbia. EVRAZ in North America is the number one producer of large diameter pipe, the second largest producer of steel plate and the largest producer of rail. EVRAZ North America is a wholly owned subsidiary of EVRAZ, one of the largest vertically integrated steel and mining businesses in the world. Additional information is available at www.evrazna.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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