Flir Systems Awarded $17.0 Million in U.S. Navy, Marine Corps Contracts.

PORTLAND, Ore.--(BUSINESS WIRE)--Aug. 5, 1999--

MarFLIR Contract, Worth $12.0 Million, Meets

U.S. Navy's Exacting Functional, Maritime Environmental Standards

Marine Corps Awards FLIR $5.0 Million For Star SAFIRE Subsystems

FLIR Systems Inc. (Nasdaq:FLIR), a leader in the design and manufacture of thermal imaging equipment, Thursday announced that it has been awarded a multimillion dollar contract by the U.S. Navy to supply 61 thermal imaging systems, dubbed MarFLIR(TM), for its maritime applications.

The contract is an initial delivery order on a larger contract for up to 85 systems over five years.

MarFLIR, which was introduced in the second quarter of 1999, is an inverted stabilized 9-inch gimbal forward-looking infrared system designed specifically for the maritime environment and is one of the product benefits resulting from the merger with Inframetrics, which closed in March of this year. The MarFLIR, which can be mounted on a vessel's mast or wheelhouse and boasts full de-icing capabilities, features a 10x continuous zoom lens and high-sensitivity infrared detector, laser range finder and an auto tracker.

Additionally, the hermetically sealed gimbal meets the Navy's stringent vibration, shock and maritime environmental requirements. The Navy intends to use MarFLIR on a variety of craft, ranging from 28 to 171 feet.

"This contract with the U.S. Navy confirms that the government market is very healthy and demand for our systems is quite strong," said Ken Stringer, president and chief executive officer of FLIR Systems. "MarFLIR's ability to meet the Navy's tough maritime environmental standards is a testament to our engineering team and the design and quality of FLIR products. Furthermore, this contract award represents a new market opportunity not previously satisfied by any other existing products."

The Marine Corps contract award, valued at $5.0 million, calls for FLIR Systems to supply subsystems to the Marine Corps' inventory of FLIR's advanced airborne thermal imaging system, the Star SAFIRE(TM). The U.S. Marine Corps currently uses the Star SAFIRE on its fleet of UH-1N helicopters.

Star SAFIRE employs advanced thermal imaging (infrared) technology and three optical fields of view for long-range identification and image clarity in the most adverse climatic conditions. The Star SAFIRE's improved visual range combined with an eye-safe laser range finder will allow for faster identification of objects and quicker reaction times -- greatly enhancing navigation, surveillance, training safety and target recognition applications for the US Marine Corps.

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, and search and rescue. Commercial product applications include broadcast imaging, condition monitoring, non-destructive testing, research and development, and manufacturing process control. For more information, visit the company's Web site at www.flir.com.