Press Release

NovAtel Inc. Achieves Galileo Full Contract Award Program Milestone

By SpaceRef Editor
October 3, 2007
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CALGARY, ALBERTA– – NovAtel Inc. (NASDAQ:NGPS), a precise positioning technology company, has achieved a Galileo program milestone through the award of a contract worth EUR 6.3M (US$8.6M) by Thales Alenia Space Italia (TAS-I) for the continued development of the Ground Reception Chain (GRC) reference receiver for Galileo, Europe’s state-of-the-art Global Navigation Satellite System (GNSS). TAS-I, NovAtel and Space Engineering were initially selected by the European Space Agency (ESA)/ESNIS/Thales Alenia Space France (TAS-F) and began work on the program in June 2005. Since then, NovAtel has been developing technology under preliminary authorizations and has already generated EUR 2.1 million (US$2.7 million) in revenue between Q3 2005 and Q2 2007.

The contract award is a program milestone achievement worth EUR 441 thousand (US$600 thousand). Following this contract award, NovAtel also has the opportunity to achieve two other milestones in the second half of 2007 valued at EUR 760 thousand (US$1,034 thousand). Galileo is expected to be fully operable from 2012 with up to 30 satellites orbiting the earth. It is designed for both civilian and government purposes and will be controlled and operated by civil management.

According to Tony Murfin, NovAtel’s Vice President, Business Development, “We are extremely pleased to have negotiated the final terms with TAS-I on this fixed price contract, given that we have been working on interim funding for over two years. NovAtel will now be able to better manage this project on a long-term basis. The funded Galileo ground reference receiver technology we are developing is a key strategic advantage for NovAtel, as demand for Galileo ground infrastructure expands to other regions worldwide. We anticipate that a new, firm basis will soon be established in Europe to allow the Galileo system to move forward to full deployment.”

The ground reference receiver, for which NovAtel continues to develop receiver components, forms part of the GRC, which is being supplied by TAS-I to TAS-F, ESNIS and ESA for use in the Galileo Ground Mission Segment (GMS). The program calls for the development, qualification and delivery of 25 production GRC equipment groups to support the In Orbit Validation (IOV) phase of the European satellite navigation system. The objective of the IOV phase is to verify the proper functioning of the overall navigation system before full deployment.

NovAtel has been working on the development and qualification of two digital receiver sections and an I/O Master card, and will supply an off-the-shelf dual frequency GPS receiver – all for installation in a NovAtel 19 inch rack enclosure. These receiver components are being provided to TAS-I, who will add radio frequency and other digital receiver components and system qualification to complete the GRC reference receiver.

Thales Alenia Space Italia will also provide an external antenna supplied by Space Engineering and an external commercial atomic clock and will deliver the GRC equipment group to TAS-F and ESNIS. ESNIS was established in 2000 as a joint venture of leading European space companies to act as industrial prime to develop and deliver the European satellite navigation system infrastructure.

About NovAtel Inc.

NovAtel Inc. (NASDAQ:NGPS) is a leading provider of precision Global Navigation Satellite System (GNSS) components and subsystems that afford its customers rapid integration of precise positioning technology. The Company’s mission is to provide exceptional return on investment and outstanding service to our customers. An ISO 9001 certified company, NovAtel is focused on developing quality OEM products including receivers, antennas, enclosures and firmware that are integrated into high precision positioning applications worldwide. These applications include surveying, Geographical Information System (GIS) mapping, precision agriculture machine guidance, port automation, mining, marine and defence industries. NovAtel’s reference receivers are also at the core of national aviation ground networks in the USA, Japan, Europe, China and India. The Company is committed to providing its customers with advanced positioning technology through significant R&D investment focusing on the modernized Global Positioning System (GPS), the revitalized Russian GLONASS and the emerging European Galileo satellite systems, as well as the integration of additional complementary technologies such as Inertial Measurement Units (IMUs). For more information, visit

Certain statements in this news release, including those about the Company’s prospects for additional European satellite navigation system projects, future plans and intentions, long-term growth prospects, levels of activity or other future events, are forward-looking statements. These forward-looking statements are not based on historical facts but rather on management’s current expectations regarding NovAtel’s future growth, results of operations, performance, future capital and other expenditures, competitive advantages, business prospects and opportunities. Wherever possible, words such as “anticipate”, “believe”, “expect”, “may”, “could”, “potential”, “intend”, “estimate”, “should”, “plan”, “predict”, “forecast” or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. Forward-looking statements involve significant known and unknown risks, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements, including operating results of the Company’s joint venture Point, Inc. (“Point”), U.S. dollar to Canadian dollar exchange rate fluctuations, establishing and maintaining effective distribution channels, certification and market acceptance of NovAtel’s new products, the impact and timing of large orders, dependence on key customers, credit risks of customers and the Company’s joint venture Point, pricing pressures in the market and other competitive factors, maintaining technological leadership, timing of revenue recognition in connection with certain contracts, the ability to maintain supply of products from subcontract manufacturers, the procurement of components to build products, product defects, the impact of industry consolidations, including the proposed merger between Sokkia Co. Ltd. and Topcon Corp., vulnerability to general economic, market and business conditions, competition, environmental and other actions by governmental authorities, reliance on key personnel and other factors described in the Company’s Form 20-F for the year ended December 31, 2006 and other SEC filings, many of which are beyond the control of NovAtel. These factors should be considered carefully and undue reliance should not be placed on the forward-looking statements. These forward-looking statements are made as of the date of this news release, and NovAtel assumes no obligation to update or revise them to reflect new events or circumstances.

SpaceRef staff editor.