Petards Regulatory News (PEG)

PETARDS GROUP PLC ("Petards" or the "Group")

Contract Wins

Petards, the AIM quoted developer of advanced security systems is pleased to announce that it has been awarded two significant contracts totalling £1.5 million in value.

The Ministry of Defence (MOD) has awarded the company a contract for £1.0 million for the delivery of an Emulator that will enable Petards ALE-47 Threat Adaptive Countermeasures Dispenser System (TACDS) to be used more effectively, thereby enhancing the survivability of aircraft and crew. The ALE-47 TACDS equipment is installed on the UK's large transport aircraft including rotorcraft/helicopters. Deliveries on the project to our customer are due to commence during the second half of 2017 with a completion date of mid 2018.

The Company has also been awarded a contract by Leonardo MW (previously Agusta-Westland) for £0.5 million for the continuing upgrade of the Merlin Mk.4 under its Merlin Life Sustainment Programme. The contract award is the third consecutive contact award to Petards for the supply of ALE-47 TACDS Equipment and is scheduled for delivery during the first half of 2018.

The board is also pleased to announce that the MOD has exercised its option to extend by one year to September 2018 the Group's existing enabling contract to supply it with private mobile radio equipment, ancillaries and engineering services.

The contract, whose annual revenues are anticipated to be in excess of £0.5 million, uses Petards' design engineering skills to identify and supply solutions to complex military communications requirements.

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