RMS.L Regulatory News (RMS)

Strat Aero plc / Index: AIM / TIDM: AERO / Sector: Support Services

9 November 2015

Strat Aero plc ("Strat Aero", the "Company" or the "Group")

Joins Autonomous and Unmanned Systems Cluster (AUSC) of south-eastern New Mexico, Creating New Business Opportunities in the Military & Civilian Markets

Strat Aero plc, the AIM listed international aerospace company focused on the rapidly emerging Unmanned Aerial Vehicle ("UAV") sector, is pleased to announce that it has become an affiliate member of the consortium of companies in the Autonomous and Unmanned Systems Cluster ('AUSC') of south-eastern New Mexico. Through this consortium, Strat Aero and its partners can match the full user needs of large Unmanned Aircraft System ('UAS') programmes globally, such as those required by large institutions, including the Military, Homeland Security, Agriculture, Oil & Gas entities and other infrastructure intensive organisations. Strat Aero will provide key unmanned system software, services, and training capabilities as part of its fully integrated UAV service offering.

The AUSC was founded by Cliff Hudson in partnership with the Otero County Economic Development Council and with the support of the City of Alamogordo, New Mexico as part of Emerging Technology Ventures, Inc. ('ETV') public-private business model. Operations have been established on a 47 acre campus in Alamogordo, close to the heartland of US Military & Homeland Security operations in central USA. The AUSC is now funded by the US Small Business Administration under their national Clusters Initiative programme. ETV specialises in bringing together and developing integrated technology solutions for both Military & Civilian Unmanned System market sectors.

The ETV partners have collectively already applied for significant military contracts worth a combined US$10m through the U.S. Navy's SeaPort-e procurement programme. SeaPort-e is the Navy's electronic platform for acquiring support services in 22 functional areas including Engineering, Financial Management, and Programme Management. ETV was awarded a SeaPort-e multi-year contract in April 2015 and is assembling its team members to compete for significant multi-year system engineering and technical assistance contracts scheduled for FY 2016.

In addition, ETV is collaborating with both government agencies and academic institutions to leverage and commercialise research into market solutions. This includes nationally recognised institutions such as Sandia National Labs (unmanned systems battery management) and New Mexico State University (autonomous technologies).

Tony Dunleavy, CEO of Strat Aero said, "I am absolutely delighted to align Strat Aero with ETV. We share a vision of the need to be able to provide full solutions in the new emerging UAS industry to add real long term value to the present and future clients of this industry. With an extensive background in military procurement, ETV's founder Cliff has a valuable skill set which we are confident will significantly benefit Strat Aero in its pursuit of US military contracts as part of AUSC. Furthermore, Cliff's vision to unite all the required elements to fulfil large contracts though a coalition of different businesses, each bringing their own unique abilities, is a perfect solution to enable Strat Aero to successfully compete for the large military, homeland security and other institutionalised contracts that are and will be available. Cliff only set up ETV in 2014 and it is remarkable to see how much progress has already been made. I have no doubt that our relationship will be mutually beneficial both for the partners of ETV itself as well as for the shareholders of Strat Aero."

Cliff Hudson, founder of ETV, said, "We are so pleased that Strat Aero, like ETV, has discovered the positive and supportive business climate that the State of New Mexico has established for growing industries. The strategic partnership with Strat Aero provides unparalleled access by AUSC small business members to the rapidly expanding worldwide unmanned systems markets including precision agriculture, defence, critical infrastructure protection, inspection, and public safety. Strat Aero's unique agility and expertise in software, training, operations, and support services enables the team to deliver a total life cycle unmanned solution to the customer from concept to fielding. This capability is normally enjoyed by only the largest system integrators."

Further Information

About ETV

ETV has a number of established members, each of whom play a key role in fulfilling parts of the large programmes and contracts secured by the group. These include:

· Bostan Research which develops highly advanced VTOL (Vertical Take Off & Landing) UAVs, which are capable of meeting mission specific US Army & Navy objectives as well as significantly increasing long term payload capabilities of UAVs for both Military & commercial users. Bostan Research has already demonstrated its technology through the Department of Defence Small Business Innovative Research programme (Phase I & II). The platform is now entering the transition and commercialisation phase.

· A family of unmanned ground vehicles for precision agriculture, public safety, and defence.

· Integrated command and control/mission planning for collaborative (air/ground) unmanned operations in precision agriculture, public safety, and defence.

This competitive range of technologies allows the provision of integrated, scalable unmanned system solutions across these worldwide markets.

About ETV Founder Cliff Hudson

The founder of ETV, Cliff Hudson has 32 years of experience with the Department of Defence ('DoD') in acquisition management, project management and technology transition, specialising in unmanned system programme management. Since retiring from the DoD he has continued to develop a unique public-private model, leveraging federal, state and local funding along with private investment for the development of emerging small businesses and sustainable regional economic development. He was recently appointed as the new District 6 City Commissioner of Alamogordo, where he has been a resident since July 2014, a role in which he hopes will better assist the development of both the City itself and technology businesses located in Alamogordo. Cliff has used his extensive experience in both Government, Military and State Funding organisations to bring together and fund coalitions of businesses, such as Strat Aero, which together can better match the full user needs of large UAS programmes, such as those required by large institutions such as the Military, Homeland Security, Agriculture, Oil & Gas entities and other Infrastructure intensive organisations.

**ENDS**

For further information please visit www.strat-aero.com or contact:

Notes:

Strat Aero plc is a multi-divisional international aerospace services company, focussed primarily on the provision of complete client solutions in the Unmanned Aerial System ('UAS' market), which is predicted to show exponential growth over the coming decade. Civilian, law enforcement and military applications in UASs are expected to be a dynamic growth sector in the aerospace industry over the next 10 years with the UAS market forecast to grow to more than US$82.1 billion between 2015 and 2025 (AUVSI Economic Report 2013) and the global airborne Intelligence, Surveillance and Reconnaissance ('ISR') market estimated to grow to US$19.23 billion by 2023.