Government of Canada Invests in R&D Technology for Joint Strike Fighter Program

WINNIPEG, MANITOBA, Sep 02 (MARKET WIRE) --
The Honourable Vic Toews, Member of Parliament for Provencher (Manitoba),
on behalf of the Honourable Jim Prentice, Minister of Industry, today
announced support for a research and development (R&D) project that will
sustain Canada's participation in the multinational Joint Strike Fighter
(JSF) program. The project, undertaken by Bristol Aerospace Limited - a
division of Magellan Aerospace Limited of Mississauga, Ontario - will
create and maintain highly skilled jobs in Canada, while contributing to
an aerospace composite centre of excellence in Winnipeg.

"Prime Minister Harper and the government are working hard to maximize
business opportunities available to Canadian companies under the JSF
program," said MP Toews. "This project will build on Canada's strength in
the manufacturing of advanced composites and supports our commitment to
an international defence effort."

The R&D project, with an estimated total cost of up to $120 million, will
develop new processes for composite manufacturing and complex assemblies
that incorporate both composite and metallic components. The Government
of Canada will be contributing a repayable $43.4-million investment
towards the project.

This complicated and innovative technology will provide unparalleled
strength to the wing and tail of the F-35 aircraft. The company will
receive substantial technical and collaborative support from industry and
academia to achieve higher tolerances than previously seen on military or
civilian platforms.

"This investment allows Bristol to actively participate in achieving the
technical demands required for the development of the world's most
advanced fighter aircraft," said Jim Butyniec, President and CEO of
Magellan Aerospace Corporation. "Our partnership with the Government of
Canada supports next-generation composite manufacturing that will prove
to be the catalyst for future programs."

"Winnipeg's Composites Innovation Centre is pleased to collaborate in the
research and development needed for this international program," said
Sean McKay, Executive Director of the Composites Innovation Centre
Manitoba Inc. "This project builds on Canada's strength as a recognized
leader in aviation composites and stimulates economic growth in Winnipeg
and Western Canada."

This investment is being made through the Strategic Aerospace and Defence
Initiative (SADI), which supports strategic industrial research and
pre-competitive development projects in the aerospace, defence, space and
security industries. SADI is managed by the Industrial Technologies
Office, a special operating agency of Industry Canada with a mandate to
advance leading-edge R&D by Canadian industries.

The Government of Canada's participation in the JSF program makes it
eligible to benefit from preferential conditions and advantages reserved
for JSF partners; however, this participation does not commit it to
purchase the aircraft.

BACKGROUNDER

Government of Canada Invests in R&D Technology for Joint Strike Fighter
Program

The Government of Canada is investing $43.4-million in Bristol Aerospace
Limited of Winnipeg, Manitoba, for a research and development
manufacturing technologies project. The project will focus on developing
composite technologies for the multinational Joint Strike Fighter (JSF)
program.

The JSF program is a U.S.-led multinational effort to build an
affordable, multi-role, fifth-generation stealth fighter aircraft. In
February 2002, the Government of Canada signed a memorandum of
understanding with the United States Department of Defence, signalling
the beginning of Canadian participation in the JSF program and providing
the Canadian aerospace industry with access to the largest international
defence contract ever awarded. Through this involvement, Bristol has
secured business opportunities during the pre-production phase of the
F-35 aircraft.

The work Bristol is undertaking will generate many technological and
long-term economic benefits for Canadians. An extensive amount of
collaboration will occur with industry and research institutions,
including Winnipeg's Composites Innovation Centre. This project will
support a supply chain of Canadian companies, through direct and indirect
relationships. The resulting jobs will be high-technology and
knowledge-based focused, with a long-term project life span of 20 years
or more.

The project's real value lies in expanding Canada's existing strength in
aerospace and defence manufacturing technologies through the
leading-edge, highly automated, precision composite and metallic
technologies assemblies. The resulting expertise in advanced composite
materials will strengthen Winnipeg's position as an aerospace composite
centre of excellence. This proficiency can be leveraged to secure future
aerospace development work across commercial, defence and space sectors.

The Winnipeg region, home to the largest aerospace industry in Western
Canada, is the third largest provider of aerospace goods and services in
the country. Manitoba's aerospace industry boasts revenues in excess of
$1 billion annually and directly employs over 4000 people.

Bristol Aerospace Limited employs 650 people and is the largest division
of the Magellan Aerospace group of companies, which employs 3,700 in
operating divisions throughout North American and the United Kingdom.

BACKGROUNDER

Strategic Aerospace and Defence Initiative (SADI)

The Strategic Aerospace and Defence Initiative (SADI) supports strategic
industrial research and pre-competitive development projects in the
aerospace, defence, space and security industries.

Launched on April 2, 2007, this new initiative was developed with three
key objectives in mind:

- to encourage strategic research and development (R&D) that will result
in innovation and excellence in new products and services

- to enhance the competitiveness of Canadian aerospace and defence (A&D)
companies

- to foster collaboration among research institutes, universities,
colleges and the private sector

By investing in strategic R&D projects, SADI contributes to the
development of technologies that focus on next-generation products or
services, build on Canadian strengths, and enable Canadian companies to
participate in major platforms.

SADI is administered with high standards of transparency and
accountability by the Industrial Technologies Office. All project
applications undergo extensive evaluation using a clear and rigorous
process with published assessment criteria. These criteria include the
company's ability to achieve the stated objectives, the project's
technology benefits, and the expected social and economic benefits.

All Canadians receive value from SADI's contributions through the
technological and economic benefits that result from supported R&D
projects. These benefits include spinoffs in diverse sectors of the
economy, such as nanotechnology and information technology, as well as
the development of collaborative partnerships with universities, colleges
and research institutions. Contributions to R&D made through SADI will
also contribute to high-quality employment opportunities, strengthen
Canada's workforce with talented scientists, engineers and researchers,
and leverage private sector investments in R&D.

Canada's A&D industries are recognized around the world for producing
leading-edge products and services. Domestically, these industries are
important economic drivers in all regions of the country and are
collectively significant players in the development of Canada's
knowledge-based economy. Among the world leaders, Canada's A&D industries
offer competitive and innovative solutions and are backed by a highly
skilled workforce.

The Industrial Technologies Office is a special operating agency of
Industry Canada, with a mandate to advance leading-edge R&D by Canadian
industries.

Contacts:
Office of the Honourable Jim Prentice
Minister of Industry
Bill Rodgers
Director of Communications
613-995-9001

Industry Canada
Media Relations
613-943-2502

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