SL Ventures, Inc./Canadian Aerospace Group Ltd. Contracts with Major U.S. Aerospace Guidance System Company to Develop a Line of 'Unmanned Military Aircraft'.

BURLINGTON, Ontario--(BUSINESS WIRE)--Dec. 9, 1998--SL Ventures, Inc.(OTC Bulletin Board:SLVM - new) Canadian Aerospace Group Ltd. (CAG) is pleased to announce a newly formed Contractor Teaming Agreement with Micro Systems, Inc. of Fort Walton Beach, Florida.

Micro Systems, Inc. (Micro Systems) is a leading U.S. designer and manufacturer of guidance, command and control flight systems, for aerial target drones and unmanned air vehicles (UAVs). Micro Systems has provided logistics, flight test engineering, and depot support for Army and Air Force full and subscale aerial targets since 1976 and now provides control systems for the targets of all three military services.

By joining with CAG, Micro Systems has agreed to design a sophisticated guidance and flight control system specifically for conversion of CAG's state-of-the-art military jet aircraft, the Monitor, for unmanned flight missions. The variety of missions for which a UAV can be used, varies from passive surveillance, to threat simulation, to strike missions. More importantly, in today's world of decreasing defence budgets, the UAV can offer the military a very cost-effective alternative to those offered by manned aircraft.

There is a stated requirement by NATO and U.S. Armed Forces, for hundreds of aerial targets and UAVs each year. In fact, U.S. Armed Forces spend more than US$200 million annually on these. CAG and Micro Systems intend to jointly develop UAVs, aerial targets, as well as uninhabited combat air vehicles, for a number of these identified markets worldwide.

The Monitor, is composed entirely of advanced composites in its airframe. The use of this technology has many significant advantages that are of tremendous interest to the military. Not the least of which is the extremely low radar profile that a composite structure offers. This "stealth" feature has applications both in terms of the training it offers military personnel in terms of recognition and detection of stealth-type aircraft, and also in terms of the various missions it is capable of accomplishing.

CAG is a Canadian company, with its head office in Burlington, Ontario and a manufacturing facility in North Bay, Ontario. It is a group of companies, formed to exploit and develop specific market opportunities in military, commercial and civil aviation, with a focus on state of the art technology. The first three products that will be brought to market, are the Monitor military jet trainer, the Twin Panda 19-seat regional airline utility transport and the Windeagle general aviation aircraft. Canadian Aerospace Group Ltd., is a wholly owned subsidiary of SL Ventures, Inc., which trades on the NASD Over the Counter Bulletin Board in the U.S. under the symbol SLVM.