Textron Systems, Rheinmetall Canada and Kongsberg Protech Systems Canada announce $100 Million Contract on Canadian Forces Tactical Armoured Patrol Vehicle Program

Textron Systems Canada Inc., a Textron Inc. (NYSE: TXT) company, Rheinmetall Canada Inc., and Kongsberg Protech Systems (KPS) Canada today announced a $100 million CAD contract for work to be performed by KPS Canada on the Canadian Forces Tactical Armoured Patrol Vehicle (TAPV) project. This is a sub-contract within the $205 million CAD contract between Textron Systems and Rheinmetall that was announced in October 2012.

This contract will help to sustain 16 jobs and create approximately 16 more jobs – doubling the workforce at KPS Canada’s London, Ontario production facility which opened just over a year ago in November 2011. The contract also fulfills a portion of Textron Systems’ participation in Canada’s Industrial and Regional Benefits (IRB) Policy arising from the government’s purchase of 500 Textron TAPVs.

This contract extends KPS Canada’s work with the Government of Canada and strengthens the company’s position as the world market leader for remotely controlled weapon stations. Since 2005, the company has been supplying the PROTECTOR M151 Remote Weapon Stations (RWS) to the Canadian Forces.  On the TAPV project, KPS Canada will deliver a new technological innovation with the Dual Remote Weapon Station (DRWS). This remote weapon station features two mounted weapons that can be operated by both the vehicle commander and gunner.  These capabilities provide additional safety and protection for soldiers in the field by allowing them to operate the DRWS from within the vehicle reducing their exposure to enemy fire.

“Participation in the TAPV project is of strategic importance to Kongsberg Protech Systems,” said KPS Canada’s President Jørn Buø. “Kongsberg Protech Systems production and participation in the TAPV program will strengthen London, Ontario as a Canadian contributor to the ground based defence industry. KPS Canada and KONGSBERG are already a large and reliable supplier in the region, the province and in Canada. This contract has created a unique opportunity for further growth locally.”

“We are extremely pleased to be working with Textron Systems and Kongsberg Protech Systems Canada,” said Rheinmetall Canada’s President and CEO, Dr. Andreas Knackstedt.  “Together we will deliver state of the art equipment to the Army, and provide value for taxpayers’ money, while creating highly skilled jobs in Canada.”

In June 2012, the Textron TAPV Team, led by Textron Systems, was selected to manufacture 500 Canadian Forces Tactical Armoured Patrol Vehicle (TAPV) with options for up to 100 more. The TAPV contract has a value of $603.4 million CAD, with an additional five-year in-service support contract of $105.4 million CAD.

Ottawa-based Textron Systems Canada, as prime contractor, will provide overall TAPV program and configuration management, act as design authority for change management, coordinate vehicle integration activities by Canadian subcontractors, and manage the In-Service Support contract.  Textron Systems Canada will also be implementing a Canadian Industrial and Regional Benefits program designed to bring employment to Canadians and new expertise and opportunities to Canadian companies.

“Kongsberg Protech Systems Canada’s DRWS is a key element in our TAPV. As a teammate in implementing the delivery of the TAPV to the Canadian Army, they will help bring economic benefits to Canada,” said Neil Rutter, general manager of Textron Systems Canada. “In the coming months, we will continue to sign agreements with other best-in-class Canadian suppliers who will help us deliver a fleet of Textron TAPVs that provide Canadian soldiers with unmatched performance and protection for decades.”

In addition to Rheinmetall Canada and KPS Canada, the Textron TAPV team includes EODC – Engineering Office Deisenroth Canada (Ottawa, ON).

The Textron TAPV is the most reliable and technologically advanced vehicle of its kind. It draws on the company’s more than 45 years of experience in the design and production of armoured vehicles.  The Textron TAPV will provide the Canadian Forces with the optimal balance of survivability, mobility and versatility, while delivering outstanding performance in the world’s most challenging environments. Extensively tested to confirm ballistic, blast, mobility and reliability levels, the Textron TAPV has been engineered to meet and exceed Canada’s requirements.

For additional information visit www.textrontapv.ca, www.kongsberg.com/en/kps, www.rheinmetall.ca and www.textronsystems.ca.

About Kongsberg Protech Systems

Kongsberg Protech Systems is the world’s leading supplier of Remote Weapon Stations (RWS). The PROTECTOR RWS, consisting of six different versions, has been chosen by 17 nations with more than 15, 000 systems sold worldwide. KPS is a business unit with the Kongsberg Group, an international, knowledge-based group that supplies high-technology systems and solutions to customers in the oil and gas industry, the merchant marine, and the defence and aerospace industries. With 6,800 employees in more than 25 countries, Kongsberg Group delivers extreme performance to customers operating under extreme conditions.

About Rheinmetall Canada

With engineering and production facilities in Saint-Jean-sur-Richelieu and a business development office in Ottawa, Rheinmetall Canada is renowned for its expertise in the design and manufacturing of defence electronics, weapon systems, and vehicle integration for both domestic and international customers. For the Canadian Forces, the company is the prime contractor on several key programs, including the repair and overhaul of the Leopard 2 A4 main battle tanks and the close area suppression weapon – the army’s digitized 40 mm grenade launcher. More information is available at www.rheinmetall.ca.

About Textron Systems

Textron Systems has been providing innovative solutions to the defense, homeland security and aerospace communities for more than 50 years. Headquartered in Providence, R.I., the company is known for its unmanned aircraft systems, advanced marine craft, armored vehicles, intelligent battlefield and surveillance systems, intelligence software solutions, precision smart weapons, piston engines, test and training systems, and total life cycle sustainment and operational services. Textron Systems includes AAI Logistics & Technical Services, AAI Test & Training, AAI Unmanned Aircraft Systems, Advanced Systems, Aerosonde, ESL Defence, Lycoming Engines, Medical Numerics, MillenWorks, Overwatch, Textron Defense Systems and Textron Marine & Land Systems. To serve Canadian customer requirements, the company established Ottawa-based Textron Systems Canada. More information is available at www.textronsystems.com.

About Textron

Textron Inc. is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Bell Helicopter, Cessna Aircraft Company, Jacobsen, Kautex, Lycoming, E-Z-GO, Greenlee, and Textron Systems. More information is available at www.textron.com.

Certain statements in this press release are forward-looking statements which may project revenues or describe strategies, goals, outlook or other non-historical matters; these statements speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements. These statements are subject to known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to, performance issues with key suppliers, subcontractors or business partners; our ability to perform as anticipated and to control costs under government contracts; changes in worldwide economic or political conditions that impact demand for our products, interest rates or foreign exchange rates; and changes in foreign military funding priorities or budget constraints and determinations, or changes in government regulations or policies on the export and import of military and commercial products.

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