Harris Corporation Awarded $164 Million - US $110M - Canadian Military Contract.

CALGARY/OTTAWA, Ontario & MELBOURNE, Fla.--(BUSINESS WIRE)--July 22, 1999--

Harris Corporation has been awarded a $164 million (US $110M) contract - with options that could increase the value to $264 million (US $178M) -- to maintain and improve the avionics testing and repair process for the Canadian military's primary attack fighter jet.

The Canadian Department of National Defence named Harris' subsidiary, Harris Canada, Inc., as the prime contractor for the 10-year contract to provide portable adaptive test systems, hardware and software support and avionics repair service for the Canadian Department of National Defence's CF-18 aircraft. This work will take place in a new Consolidated Automatic Test Equipment Support Facility (CATEF) located in Calgary, Alberta.

The CATEF industry team is comprised of Florida-based Government Communications Systems Division of Harris Corporation and Raytheon Canada Services and Support Division, Calgary, AB. Both companies are recognized industry leaders in the development and manufacture of automatic test equipment and support for military aircraft avionics systems.

The CATEF is a centralized avionics maintenance facility dedicated to the Canadian Forces CF-18 aircraft (a variant of the U.S. Navy F/A-18 Hornet) with current operations at Canadian Forces Bases Cold Lake and Bagotville. The CATEF will be located in existing Harris Canada and Raytheon facilities and is expected to create approximately 54 new jobs in Calgary.

Harris Canada is currently under a separate contract to supply CF-18 portable avionics test equipment, as well as software support, for testing avionics systems on board the aircraft. The CATEF program expands the company's role to overall prime contractor of maintenance activities, as well as that of supplier of critical test systems expertise, software, and the hardware that is called for under the current contract.

Harris Canada and Raytheon have been working very closely with the Canadian DND to find alternative sources of delivery for non-core CF-18 avionics repair. This new approach will allow the military to concentrate on their core activities while continuing to meet their operational requirements. "We will continue this Integrated Product Team approach with the DND to ensure managed cost effectiveness of all CF-18 second and third level avionics maintenance requirements well into the 21st century," said Daniel R. Pearson, Vice President and General Manager, Government Communications Systems Division. "We view the CATEF project as a unique opportunity for industry and the Canadian DND to form an alliance that provides avionics support for the CF-18 aircraft."

Harris Canada, Incorporated, is a wholly owned subsidiary of Harris Corporation. The company employs 600 people and operates two high-technology facilities located in Dollard-des-Ormeaux, Quebec, and Calgary, Alberta, Canada. The company's primary role is to provide design, manufacture and distribution of microwave radio systems solutions for the wireless communications industry worldwide.

Harris Corporation (NYSE-HRS) is an international communications equipment company focused on providing product, system, and service solutions that take its customers to the next level. The company provides a wide range of products and services for commercial and government communications markets such as wireless, broadcast, government systems, and network support. The company has sales and service facilities in 90 countries.