Pennant International Regulatory News (PEN)

17 September 2014

Pennant International Group plc

Contract win:

Initial two year contract term to September 2016 with maximum value of $CA 7.9 million;

Further annual extension options to 2019 giving maximum contract value of $CA 19.7 million

Pennant International Group plc ("Pennant" or the "Group"), the AIM quoted supplier of integrated logistic support solutions, products and services, principally to the defence, rail, aerospace and naval sectors and to Government Departments, is pleased to announce that Public Works and Government Services Canada ("PWGSC") has awarded a services consulting contract to Pennant Canada Limited in Ottawa, Ontario, Canada.

The contract calls for provision of a range of services to the Canadian Department of National Defence ("DND") to optimise the use and effectiveness of Pennant's OmegaPS suite of supportability software products in use throughout DND. The contract allows for services to be called upon an "as and when required basis" for an initial two year term through to the 14th of September 2016 and has a maximum value of $CA 7.9 million. In addition, there are three additional one year extension options in the contract, which if exercised will extend the period of the contract through to the 14th of September 2019 and raise the maximum value of the contract to $CA 19.7 million.

Under this contract Pennant Canada Limited will provide services to the Canadian DND which will include software development specific to DND customisation of OmegaPS software, software installation services, delivery of formal training courses to DND personnel on the OmegaPS software suite and provision of specialist consultant services to DND to optimise the use of the OmegaPS Suite of software products in the department. OmegaPS and OmegaPS Analyzer are the Logistic Support Analysis ("LSA") and Life Cycle Costing ("LCC") software products of choice for the Canadian DND and have been used extensively throughout the department since the early 1990s.

Chris Snook, Chief Executive of Pennant stated: "This contract once again serves as an important step in ensuring that the Department of National Defence derives maximum benefit from the use of the OmegaPS software suite. The length and value of the contract further solidifies Pennant's software and consultant services operations in Canada in both Government and industry and serves as an endorsement of the effectiveness of the software and services provided to date."

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