Pennant International Regulatory News (PEN)

13 March 2017

PENNANT INTERNATIONAL GROUP PLC

(AIM: PEN)

Canadian contract amendment adds further £2million to Order Book

Pennant International Group plc ("Pennant" or "the Group"), the AIM quoted supplier of integrated support solutions, products and services, principally to the defence, rail, aerospace and naval sectors and to Government Departments, is pleased to announce that Public Services and Procurement Canada ("PSPC") has amended a contract with Pennant Canada Limited in Ottawa, Ontario, Canada. The amendment adds an additional C$3.8 million (£2.3 million) in contract value to the existing services consulting contract to September 2018.

The contract allows for provision of a range of services to the Canadian Department of National Defence ("DND") to optimize the use and effectiveness of Pennant's OmegaPS suite of supportability software products in use throughout DND.

The contract amendment allows for additional services to "be called upon as and when required by the customer". The increased funding will predominantly impact performance in 2018 and increases the Group's order book by in excess of £2 million.

Philip Walker, Chief Executive of Pennant stated: "This increase in the contract ceiling serves as an important step in ensuring that the Department of National Defence derives maximum benefit from the use of the OmegaPS software suite."