Calian Technology Receives an $80 Million Letter of Intent From DND.

Business Editors

KANATA, Ontario--(BUSINESS WIRE)--Dec. 5, 2003

Calian Technology Ltd. (TSX:CTY) received today a letter of intent to contract by the Department of National Defence (DND) for the provision of professional services to prepare, co-ordinate, support and maintain Command and Control exercises and experimentation activities using computerized combat simulation systems across Canada.

The contract will have an estimated value of $80 million over an eight-year period and is a continuation of the services Calian has been providing in support of the Army Simulation Centre since 1995.

The DND Army Simulation Centre (ASC) is located at Canadian Forces Base Kingston, Ontario and its four satellite Simulation Centres are located at CFB Edmonton, Alberta; CFB Petawawa, Ontario; BFC Valcartier Quebec and CFB Gagetown, New Brunswick. The Calian team will continue to provide Army commanders and their staff technical and operational support in the training, planning and execution of complex combat exercises using advanced computer simulation systems. These simulation systems are also used in experiments that provide Army senior management with data, which can be used in determining future Army structures, doctrine and the related equipment needs.

"Calian is pleased to support ASC's mandate for the training of its field force and the conceptual development of its future capabilities. In awarding this contract to Calian, DND has once again recognized the value of the service and the expertise of our personnel," said Tom Coates, Vice President and General Manager, Business and Technology Services.

Helping DND apply advanced computerized combat simulation technology has been a growing business sector for Calian since 1995. This technology enables the Canadian Army to greatly improve the effectiveness of training and dramatically reduces the related expense of preparing Army officers and enlisted personnel for operational duties. Other applications of this technology include emergency preparedness training and other related homeland security training activities.

About Calian

Calian Technology Ltd. (TSX:CTY) sells technology services to industry and government in Canada and around the world. Calian provides customers with ready access to an exceptional team of engineers, telecommunications and technology professionals, and other highly qualified staff. The Business and Technology Services Division augments customer workforces with flexible short and long-term placements, recruitment and outsourcing of engineering and other skilled professionals. The Systems Engineering Division plans, designs and implements solutions for many of the world's space agencies and leading communications satellite manufacturers and operators, as well as providing contract manufacturing services for customers in North America.

DISCLAIMER

Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Such statements are generally accompanied by words such as "intend", "anticipate", "believe", "estimate", "expect" or similar statements. Factors which could cause results or events to differ from current expectations include, among other things: the impact of price competition; scarce number of qualified professionals; the impact of rapid technological and market change; loss of business or credit risk with major customers; technical risks on fixed price projects; general industry and market conditions and growth rates; international growth and global economic conditions, and including currency exchange rate fluctuations; and the impact of consolidations in the business services industry. For additional information with respect to certain of these and other factors, please see the Company's most recent annual report and other reports filed by Calian with the Ontario Securities Commission. Calian disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. No assurance can be given that actual results, performance or achievement expressed in, or implied by, forward-looking statements within this disclosure will occur, or if they do, that any benefits may be derived from them.