Archive 2003

NovAtel Inc. and CMC Electronics sign an MOU for NovAtel’s acquisition of CMC’s GPS OEM product line

For Immediate Release	Marketing Contact	Farlin Halsey (403) 295-4970
	Investor Contact:	Sonia Ross (403) 295-4532

(Calgary, Alberta, Canada and Montreal, Quebec, Canada, February 11, 2003) - NovAtel Inc. (NASDAQ: NGPS), a precise positioning technology company, and CMC Electronics Inc. announced today the signing of a Memorandum of Understanding (MOU) towards NovAtel’s acquisition of CMC Electronics’ Global Positioning System (GPS) OEM product line. The target date for the actual transfer of the business is in early April 2003.

The new product line will extend NovAtel’s current high-performance, upgradeable L1 and L1/L2 product line into the mid-level L1 market. This will increase NovAtel’s total addressable market in core segments and also create entry points into new vertical markets, such as timing and marine. CMC’s existing GPS OEM customers will benefit from NovAtel’s broad product line, focused customer support and dedication to evolving precise positioning technologies.

CMC Electronics’ current GPS OEM product line consists of 3 single frequency board offerings - the Superstar I, Superstar II and Allstar. The product line also includes three different enclosures - the Starbox, Navistar and Smart Antenna series, along with development kits and various accessories. In addition to the hardware variants, the L1 product line offers software variations such as the ability to receive WAAS corrections, base stations, RTK solutions, timing applications and high quality L1 carrier phase output.

“NovAtel is excited about the opportunity to broaden our market access with a proven set of products and a strong established customer base,” said Jon Ladd, NovAtel’s President and CEO. “Furthermore, we intend to enhance the current L1 products using many of NovAtel’s patented technologies and core competencies, which will afford our OEM customers a faster time to market, earlier return on investment and greater flexibility and performance.”

“CMC Electronics is very pleased to have this growing product line placed under the management of our NovAtel subsidiary,” said Jim Close, President and CEO, CMC Electronics. “The transaction aligns well with CMC Electronics’ strategic thrust to focus on the Aerospace market sector. At the same time, we are convinced that the L1 OEM products and technology will flourish within the NovAtel organization. Our present customer base will be well supported as NovAtel will be bringing their great customer focus and innovative technologies to this part of the L1 market.”

The proposed acquisition of CMC Electronics' GPS OEM business by NovAtel is subject to approval by both NovAtel's and CMC Electronics' boards of directors.

About NovAtel Inc.
NovAtel Inc. is a leading provider of precise global positioning and augmentation technologies designed to afford our customers rapid integration and exceptional return on investment. The Company’s core technology is being applied in diversified positioning markets around the globe including agriculture, mining, marine, surveying, unmanned systems and machine control. NovAtel is also the prime supplier of GPS ground reference receivers to national satellite-based augmentation systems worldwide including the U.S. WAAS, Europe EGNOS, Japan MSAS and China SNAS. For more information, visit www.novatel.com .

About CMC Electronics
CMC Electronics designs and produces leading technology electronics products for the aviation, infrared sensing, global positioning and space electronics markets. Its principal locations are in Montreal, Quebec; Ottawa, Ontario; Cincinnati, Ohio; and Sugar Grove, Illinois. The company's capabilities are broadened by NovAtel Inc., its subsidiary in Calgary, Alberta. CMC Electronics is a private company controlled by an investor group led by ONCAP L.P. ONCAP is a CDN $400 million investment fund established by Onex Corporation and a number of leading Canadian financial institutions. Onex Corporation is a diversified company with annual consolidated revenues of approximately CDN $24 billion and consolidated assets of approximately CDN $23 billion. Onex is Canada's 5th largest company with global operations in service, manufacturing and technology industries.

Certain statements in this news release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, or developments in the Company's industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, operating results of subsidiaries and joint ventures, establishing and maintaining effective distribution channels, certification and market acceptance of the Company's new products, impact and timing of large orders, credit risks of customers and joint ventures, financing of joint ventures, pricing pressures in the market and other competitive factors, maintaining technological leadership, timing of revenue recognition in connection with certain contracts, the ability to maintain supply of products from subcontract manufacturers, the procurement of components to build product, product defects and the impact of industry consolidations, together with the other risks and uncertainties described in Management’s Discussion and Analysis of Financial Condition and Results of Operations herein and in the Company’s other filings with the United States Securities and Exchange Commission.