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News ReleaseNovAtel Inc. and AGCO Corporation Sign Component Supply Agreement for Next Generation AutoGuide Subsystem
(January 10, 2007)— NovAtel Inc. (NASDAQ: NGPS), a precise positioning technology company, has signed a long-term Component Supply Agreement with AGCO Corporation (AGCO), Duluth, Georgia, to deliver a new precision positioning subsystem for the Auto-Guide Satellite Navigation System (Auto-Guide) – AGCO’s advanced drive-by-wire machine guidance system. The next-generation AutoGuide is being introduced by AGCO in both Europe and North America on selected Fendt, Massey-Fergusson and Challenger series tractors. This supply agreement builds upon previous commercial arrangements between the two companies resulting in further penetration of NovAtel technology within the AGCO family of Brands and Products. Auto-Guide is AGCO’s hands-free, auto-steering agriculture solution that utilizes satellite navigation for a steer-assist feature that guides agriculture machines via a pre-determined Global Positioning System (GPS) path. In addition to fuel and economic efficiency, Auto-Guide reduces operator fatigue, lessens machine wear and contributes to environmental savings. NovAtel has begun delivery of a new class of integrated positioning subsystem which was specified by AGCO for this next-generation Auto-Guide system. The subsystem can be configured to support a range of positioning requirements from L1 WAAS through two centimeter precision Real Time Kinematic with support for OmniStar XP/HP satellite-based corrections, inertial augmentation and guidance software. This is all available in a rugged, environmentally sealed enclosure with a single connector interface that can be easily roof mounted on a growing number of AGCO agricultural machines. “AGCO developed this system using a partnership of key suppliers,” said Kevin Cobb, product manager for the AutoGuide system. “We believe that the integration of best-of-class suppliers of GPS technology, inertial sensors and guidance software makes AutoGuide a highly competitive solution for the precision farming market. AGCO chose NovAtel to develop this new product due to its industry leading price/performance and technical capability. We are very pleased to be working directly with NovAtel as our GPS and future GNSS technology supplier.” “AGCO is an industry leader, and we are extremely pleased to be the direct supplier of a precise positioning product to their many brands. We were selected by AGCO to develop a highly integrated, robust hardware product that takes advantage of NovAtel’s innovative, precise positioning components,” said Jon Ladd, President and CEO of NovAtel. “This new supply agreement with AGCO forms a cornerstone in our efforts to grow our sales into the precision agriculture market. This agreement further supports the commitment by both NovAtel and AGCO to continue to work together to provide the best solutions for AGCO’s precision farming customers.” “Although the precision agriculture market is a relatively small portion of our total business, the AGCO supply agreement is expected to contribute to NovAtel’s growth in the precision agriculture sector in 2007,” concluded Ladd. About AGCOFounded in 1990, AGCO Corporation (www.agcocorp.com) (NYSE: AG) is a leading global manufacturer of agricultural equipment and related replacement parts. AGCO offers a robust product line including tractors, combines, hay tools, sprayers, forage, tillage equipment and implements, which are distributed through more than 3,600 independent dealers and distributors in more than 140 countries worldwide. AGCO products include the following well-known brands: AGCO(R), Challenger(R), Fendt(R), Gleaner(R), Hesston(R), Massey Ferguson(R), New Idea(R), RoGator(R), Spra-Coupe(R), Sunflower(R), Terra-Gator(R), Valtra(R), and White(TM) Planters. AGCO provides retail financing through AGCO Finance. The company is headquartered in Duluth, Georgia, and in 2005, had net sales of $5.4 billion. About NovAtelNovAtel designs, markets and sells high-precision GPS and other positioning components and sub-systems used in a wide variety of commercial applications principally in the aviation, geomatics (surveying and mapping), mining, precision agriculture, marine and defence industries. NovAtel is also the principal supplier of reference receivers to national aviation ground networks in the US, Japan, Europe, China and India. NovAtel’s solutions combine hardware, such as receivers and antennas, with software to enable its customers to fully integrate the Company’s high-precision GPS technology into their respective products and systems. NovAtel, an ISO 9001 certified company, is focused on supplying core high-precision positioning technology to OEMs and system integrators who build systems for various end market applications. For more information, visit www.novatel.com. Certain statements in this news release, including those about the Company’s future plans and intentions, including levels of activity and growth prospects in the precision agriculture market, long-term growth prospects, levels of activity or other future events, are forward-looking statements. These forward-looking statements are not based on historical facts but rather on management’s current expectations regarding NovAtel’s future growth, results of operations, performance, future capital and other expenditures, competitive advantages, business prospects and opportunities. Wherever possible, words such as ‘‘anticipate’’, ‘‘believe’’, ‘‘expect’’, ‘‘may’’, ‘‘could’’, ‘‘will’’, ‘‘potential’’, ‘‘intend’’, ‘‘estimate’’, ‘‘should’’, ‘‘plan’’, ‘‘predict’’, “forecast” or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. Forward-looking statements involve significant known and unknown risks, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements, including operating results of the Company’s joint venture Point, Inc. (“Point”), impact and timing of large orders, U.S. dollar to Canadian dollar exchange rate fluctuations, establishing and maintaining effective distribution channels, certification and market acceptance of NovAtel’s new products, credit risks of customers and the Company’s joint venture Point, 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 products, product defects, the impact of industry consolidations, vulnerability to general economic, market and business conditions, competition, environmental and other actions by governmental authorities, reliance on key personnel and other factors described in the Company’s Form 20-F for the year ended December 31, 2005 and other SEC filings, many of which are beyond the control of NovAtel. These factors should be considered carefully and undue reliance should not be placed on the forward-looking statements. These forward-looking statements are made as of the date of this news release, and NovAtel assumes no obligation to update or revise them to reflect new events or circumstances. |
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