NovAtel Inc. and Raytheon Sign Contract for LAAS GPS Receiver Development.

Business Editors

CALGARY, Alberta--(BUSINESS WIRE)--Dec. 3, 2001

Raytheon Co. has awarded a long term, multi-phase development contract to NovAtel Inc. (NASDAQ: NGPS) for a Global Positioning System (GPS) receiver to be used in Raytheon's next generation satellite based landing system. The receiver is a key component in Raytheon's LAAS ground facility (LGF) being developed for the Federal Aviation Administration (FAA). This award follows NovAtel's successful completion of a three month Local Area Augmentation System (LAAS) receiver requirements definition and risk reduction program with Raytheon. The next phase, worth approximately US $400,000, is scheduled for completion in March 2002.

LAAS is the GPS based commercial precision approach and landing system being developed by Raytheon as part of a government industry partnership with the FAA. This precision landing system augments the available GPS signal to provide the high accuracy, reliability, integrity, and safety required for low visibility and all-weather precision approach and landing.

"This agreement, and a related agreement also in place, firmly establishes NovAtel in the aviation infrastructure business," said David Vaughn, NovAtel's President and Chief Executive Officer. "NovAtel technology brought Raytheon and us together on the satellite based navigation systems being developed for the United States (WAAS) and Japan (MSAS). This long standing relationship led to this new opportunity in LAAS."

"NovAtel will be working closely with Raytheon as their receiver partner on their FAA LGF Government Industry Partnership (GIP) program, and we look forward to working with Raytheon on other domestic and international programs," said Tony Murfin, Director, Aviation Group at NovAtel. "Our new OEM4 receiver is proving to be the baseline receiver for many key aviation applications."

"Raytheon selected NovAtel because of their leading technology, ability to satisfy the stringent requirements of LAAS, and their responsive approach to doing business," said Bruce Solomon, Program Manager, Raytheon Air Traffic Management Systems. "We look forward to a long-term business relationship with NovAtel on this exciting new program."

Raytheon Air Traffic Management Systems (ATMS) is a world leader in designing and building satellite-based navigation and landing solutions for civil and military applications. In addition to developing the Local Area Augmentation System (LAAS) and the Wide Area Augmentation System (WAAS) for the FAA, Raytheon is also developing the Joint Precision Approach and Landing System (JPALS) for the Department of Defense. LAAS and JPALS will provide an interoperable landing capability for military and civil applications. With headquarters in Lexington, Mass., Raytheon Company is a global technology leader in defense, government and commercial electronics, and business and special mission aircraft.

NovAtel Inc. is the principle supplier of reference receivers to WAAS ground networks around the world, and designs, markets and supports a broad range of products that determine precise geographic locations using the Global Positioning System (GPS). NovAtel's GPS products are used principally for applications in high-end markets such as the surveying, geographic information systems, aviation, marine, mining and machine control, agriculture and precise timing markets. For further information please visit our website at www.novatel.com.

Certain statements in this news release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, or developments in the Company's industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, operating results of subsidiaries and joint ventures, establishing and maintaining effective distribution channels, certification and market acceptance of the Company's new products, impact and timing of large orders, pricing pressures in the market and other competitive factors, maintaining technological leadership, timing of revenue recognition in connection with certain contracts, the ability to maintain supply of products from subcontract manufacturers, the procurement of components to build products, and the impact of industry consolidations, together with the other risks and uncertainties described in public filings.