Serge Morel
P.O. Box 17222 Sarasota, FL 34276-0222
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9/20/2000
Page 475 of 579
Canadian Marconi
CONTACT: Pascal E. Spothelfer
FOR IMMEDIATE RELEASE (403) 295-4597
April 6, 1998 Werner Gartner
(403) 295-4550
Canadian Marconi Acquires Majority Stake in NovAtel Inc.
NovAtel Also Announces Expected Decline in First Quarter Sales and Earnings
(Calgary, Alberta, Canada, April 6, 1998). NovAtel Inc. (NASDAQ: NGPSF) is pleased to announce that
Canadian Marconi Company (TSE, MSE, AMEX: CMW) has agreed today to acquire an equity position
in NovAtel Inc. Through private transactions with the two principal shareholders of NovAtel Inc.,
Canadian Marconi Company has agreed to acquire approximately 58% of the total shares outstanding
for a total purchase price of US$48.9 million or US$10.91 per share. The closing of the transaction is
expected on April 28, 1998 and is subject to standard conditions.
This acquisition by Canadian Marconi augments the strategic alliance with NovAtel announced last
October and supports our strategic focus on integrated communications/navigation systems.
NovAtel is the (GLS)GPS technology leader with excellent new products and market position, said
Gregg Fawkes, Vice President for Business Development and Strategic Planning at Canadian
Marconi. CMC intends to maintain NovAtels entrepreneurial independence, while collaborating on a
wide range of opportunities to benefit both companies.
Having Canadian Marconi as an active partner is sure to have a positive effect on our continuing
development, added Pascal Spothelfer, NovAtel President and CEO. The relationship should allow
us to collaborate in extending the OEM product line, in packaging and customization of end-user
products, and further strengthens both companies position in the aviation markets.
The market for high-end GPS products is projected by industry sources to continue to grow at 25-
30% per year, based on growth in the survey and geographic information system markets. In
addition, new applications are emerging in precision agriculture, machine control, marine and
aviation.
First Quarter Earnings Outlook While expressing general optimism about the prospects for NovAtel,
Spothelfer also noted today that the Companys financial performance would reflect a slowdown in
the first quarter.
Having closed our first quarter books, it is clear that our results will not be up to expectations, he
said. Our revenues have been hurt by fewer deliveries into the survey segment, where distribution
issues in Canada, the Asian slowdown and project delays experienced by OEM customers have
caused a significant shortfall. We expect revenues to come in between $4.6 and $4.8 million.