FLIR Awarded $19.8 Million Contract for Special Operations Forces.

Business Editors

PORTLAND, Ore.--(BUSINESS WIRE)--Oct. 14, 2003

FLIR Systems, Inc. (Nasdaq:FLIR) announced today that it has been awarded a firm fixed price supply contract from the U.S. Navy's Naval Surface Warfare Center, Crane Division valued at over $19.8 million for its enhanced targeting sights for use with the Special Operations Forces Laser Marker (SOFLAM). The enhanced targeting sight is a companion sight for the SOFLAM and is based on FLIR's MilCAM(TM) See Spot(TM) III thermal imaging camera. The MilCAM See Spot III produces high resolution thermal images for night vision, and simultaneously detects the repetitive laser pulses of a precision munitions guidance laser designating a target. The work will be performed at FLIR's facility in North Billerica, Mass., and deliveries are expected to begin in early 2004 and be completed by July 2005.

"This contract award is significant not only because of its size, but also because it represents an additional important application for our Imaging products. We are pleased to have this opportunity to support our Special Operations Forces," said Earl R. Lewis, President and CEO of FLIR Systems.

About FLIR Systems

FLIR Systems designs, manufactures and markets infrared imaging systems worldwide for a variety of applications. FLIR's imaging products are used in such diverse applications as public safety, defense, navigation, electronic newsgathering and search and rescue. Thermography products support such applications as condition monitoring, non-destructive testing, medical science, research and development, and manufacturing process control. For more information, please visit FLIR's Web site at www.FLIR.com.

Forward-Looking Statements

This release contains forward-looking statements, including the Company's expectations for deliveries under the firm fixed price supply contract and its expansion into a new product application for its Imaging Division products. These statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including the following: the availability of funding under the contract, the continuing ability to penetrate new market applications with the Imaging Division products, the federal funding levels of the Defense Department generally, the availability and timing of federal appropriated funds for procurement of thermal imaging systems, the Company's continuing eligibility to contract with the Federal Government, the Company's continued compliance with US export control laws, additional competition, the Company's ability to win larger delivery contracts, the impact of competitive products and pricing, constraints on supplies of critical components, excess or shortage of production capacity, actual purchases under purchase agreements including the delivery contract with the Naval Surface Warfare Center, Crane Division and other risks discussed from time to time in the Company's Securities and Exchange Commission filings and reports, including the Company's Annual Report on Form 10-K for the year ended December 31, 2002. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.