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Wescam Announces Sale of Non Core Business Assets.

FLAMBOROUGH, Ontario--(BUSINESS WIRE)--July 5, 1999--

(TSE:WSC.) Wescam Inc. announced today the sale of non core business assets to Primex Technologies, Inc. of St. Petersburg, Florida. The assets and supporting technology are related to the actuator and motion control systems designed and manufactured at one of Wescam's California subsidiaries, Versatron Corporation. The assets were sold for cash consideration of approximately C$9.5 million with an additional C$3.0 million contingent on future contract awards. Wescam will pay between C$3.0 million and C$4.0 million to the former Versatron shareholders, as part of the terms of the acquisition of Versatron in December 1995.

Wescam's acquisition of Versatron in 1995 was made to gain a strong foothold for electro-optic camera systems in the U.S. government/military marketplace, particularly in the unmanned aerial vehicle market. Versatron's primary business is the design and manufacture of the WESCAM?12 and WESCAM?14 camera systems. Wescam retains all assets related to its core electro-optic systems. The actuator and motion control business represented approximately 8% of Wescam's consolidated revenue in fiscal 1998.

"Our decision to sell the assets of the actuator business is consistent with our strategy of focusing on our core business as well as strengthening our balance sheet," said Mark Chamberlain, Wescam's President and Chief Executive Officer. "The net proceeds from the sale will be applied to working capital to assist in sustaining Wescam's strong growth going forward."

Wescam is a world leader in the design and manufacture of camera and microwave communications systems, mounted on a variety of moving platforms where capture and communication of a stable picture is essential. These platforms range from NASCAR motor vehicles, tracks, boats and cranes to aircraft, helicopters, airships and the Space Shuttle. Wescam products provide images and real time information for a broad range of government surveillance and commercial market segments around the globe. Wescam is traded on The Toronto Stock Exchange under the symbol "WSC".
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Publication:Business Wire
Geographic Code:1CANA
Date:Jul 5, 1999
Words:327
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