SIM.L Regulatory News (SIM)

1 May 2012

SimiGon Ltd

("SimiGon" or "the Company")

TAISR Group awards significant contract to SimiGon

SimiGon to support the Joint Close Air Support (JCAS) and manned/unmanned Intelligence, Surveillance and Reconnaissance (ISR) community

SimiGon (LSE: SIM), a global leader in modeling, simulation & training solutions, is pleased to announce that it has signed an agreement with TAISR Group LLC (TAISR), a US-based organization that provides critical skills training, to deliver advanced training and simulation solutions to support the Joint Close Air Support (JCAS) and manned/unmanned Intelligence, Surveillance and Reconnaissance (ISR) community. JCAS and ISR technology seeks to improve mission success rates and the survival potential of those who operate in hostile environments.

This agreement demonstrates that SimiGon is the partner of choice for simulated training in the defence sector as it expands the Company's reach into the ISR market, a new, fast growing and substantial market for the Company, valued at US$17.3bn in 2011 by Visiongain, a UK-based independent business information provider. The value of the agreement to SimiGon is US$430,000, expected to be recognized entirely in the course of 2012, under which SimiGon will provide SIMbox-based advanced training and simulation solutions to support the JCAS and ISR community. The revenue contribution from this contract is already factored into management's expectations for the year ended 31 December 2012.

William Burgum, TAISR CEO, said: "With our vast combat experience as JCAS Controllers and ISR sensor operators, we understand the shortcomings of current training practices. When we met SimiGon last year, we immediately realized how this technology can help us close the training gap. This alliance will result in a paradigm shift in how training is perceived and performed in the JCAS & ISR world."

SimiGon President & CEO, Ami Vizer, said: "We are excited to work with a market leader such as TAISR. The JCAS and ISR market segment is growing rapidly in size and importance and will lead to numerous growth opportunities. The partnership with TAISR further validates the value our technology brings to our partners. We see this contract as a first step in a long term, mutually beneficial relationship for both parties."

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