New contract strengthens Simrad Optronics

Simrad Optronics ASA, the Norwegian defence products company, today announced a NOK 116 million contract with the Norwegian and Swedish armed forces.

Simrad Optronics ASA, the Norwegian defence products company, today announced a NOK 116 million contract with the Norwegian and Swedish armed forces. The contract includes product development and deliveries.
 
The contract is an extension of Simrad Optronics' forward observer system FOI2000 currently being delivered to the armed forces in the two countries. The company has now been retained to develop a laser target designator which will be integrated in the existing system. This is an additional feature allowing forward air controllers to guide missiles with increased precision to their targets.
 
In addition to the development program, the contract also includes deliveries of 30 units to the Norwegian armed forces, while the Swedish defence holds an option for 10 units. Also, Simrad Optronics has been awarded the operational support and maintenance of the advanced systems for both the Norwegian and Swedish armed forces for a minimum of five years.
 
"Further to the financial value, the contract is of strategic significance to Simrad Optronics. It will further reinforce our expertise and market position within the fields of laser technology and systems integration, areas in which we already are defence industry leaders. When our forward observation system FOI2000 is even more complete with a laser designator, it will be the world's most sophisticated product in its category," said Simrad Optronics' CEO Jon Asbjørn Bø.
 
Of the NOK 116 million contract, NOK 40 million will be booked in 2008 with additional NOK 30 million booked in 2009. NOK 35 million of revenue will be booked in 2010 and the remaining parts of the contract are to be booked in 2011 and 2012.

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