Derlan Industries Limited Announces New Contract.

TORONTO--(BUSINESS WIRE)--Sept. 1, 1999--

Derlan Industries Limited (TSE:DRL.) today announced that as a result of Team Cormorant's growing business relationships in Canada, Derlan Industries Limited has won, through its subsidiary, Derlan Aerospace Canada, a three-year, $25.2 million order for the supply of bolted main rotor heads for the GKN Westland Lynx helicopter.

The order, which will bring significant additional work to Derlan facilities in both Milton and Cambridge, forms part of the Industrial Regional Benefits generated by the Government of Canada's recent selection of the Cormorant Helicopter to fill demanding search and rescue requirements for the Department of National Defence.

"This latest order is excellent news for Derlan. Our relationship with Team Cormorant is paying dividends. We employ at least 50 people in connection with the main rotor head we provide for the Lynx helicopter and this new order will deliver security of work for the next three years," said Ken Beel, President of Derlan Aerospace Canada.

Derlan Aerospace Canada received a prestigious award as a "principal supplier" for GKN Westland Helicopters in 1997, recognizing the high level of quality control and complex machining of Derlan's titanium rotor heads, which are a critical assembly holding and rotating the main rotor blades of the Lynx helicopter.

GKN Westland has produced more than 335 Lynx multi-role helicopters for the United Kingdom and worldwide customers. The Lynx is the world leader in its class for operation from small frigates in demanding sea states and is also produced in an army configuration for land based operation.

Derlan is an industrial corporation, manufacturing products for the aerospace and pump industries. The Company has operations in Canada, the United States, Mexico and Germany. Its shares are listed on the Toronto Stock Exchange under the symbol DRL.