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CHC Helicopter Corporation and Thales UK announce teaming agreement

17 July 2006

The UK Ministry of Defence (MoD) and the Department for Transport last month announced the formal launch of the Joint Search and Rescue - Helicopter (SAR-H) project to procure a harmonised service for the UK well into the 21st century.

Lord Drayson, Minister for Defence Procurement and Stephen Ladyman, the Minister with responsibility for shipping, have approved SAR-H going forward as a joint MoD/Maritime and Coastguard Agency (MCA) Private Finance Initiative (PFI) competition.

During the course of the competition CHC and Thales intend to work, through the competitive dialogue process, with the procuring agency to develop a winning solution that is innovative and fully integrated, and represents value for money.

Keith Mullett, European Managing Director of CHC, said: "We are delighted to have reached this agreement with Thales UK and now look forward to delivering a quality solution to this exciting opportunity. CHC operates an established - and growing - portfolio of Search and Rescue services around the world. We will contribute that experience, and our commitment to introducing new technology, as we seek to take a harmonised UK SAR service into a new era."

Justin Walker, Managing Director of the Thales UK services business, said: "Together the two partners bring to the programme complementary skills and an appropriate breadth of experience second to none. We are looking forward to providing the MoD and MCA with an innovative solution that builds on the strengths of the current SAR activities."

About CHC

CHC Helicopter Corporation (European HQ based in Aberdeen, Scotland) is the world's largest provider of helicopter services with core competences in the global offshore oil and gas industry and Search and Rescue activity. CHC has a modern fleet of approximately 220 aircraft operating in more than 30 countries around the world and with major operating units in Europe (UK, Norway, Denmark and Netherlands), South Africa, Australia and Canada. Demonstrating their commitment to SAR, CHC were awarded a five-year contract by the UK MCA to provide SAR helicopter services commencing July 1st, 2007. The contract operates from SAR bases at Sumburgh in the Shetland Islands, Stornoway in the Western Isles and Portland and Lee on Solent on the South Coast of England.

CHC currently provide Search and Rescue and emergency helicopter services in Africa, Australia and Norway and has recently been awarded the contract from the Irish Ministry for Transport for the continued provision of SAR services in Ireland at bases in Dublin, Waterford, Shannon and Sligo to run from July 2007 to July 2010.

About Thales

Thales is a leading international electronics and systems group, serving defence, aerospace and security markets worldwide, supported by a comprehensive services offering. The group's civil and military businesses develop in parallel to serve a single objective: the security of people, property and nations. Leveraging a global network of high-level researchers, Thales offers a capability unmatched in Europe to develop and deploy critical information systems. Thales employs 60,000 people in 50 countries and generated revenues of € 10.3 billion in 2005, with a record order book of over € 20 billion.

Thales employs 9000 staff in the UK with activities encompassing defence, aerospace, security and service delivery. In 2005, Thales UK's revenues were € 1.6 billion. The Thales UK organisation has an established prime contract capability as well as research, development, manufacturing and service delivery capabilities.

The Services division within the UK has a deep understanding of the PFI and PPP process through the development of appropriately risk transferred, value for money high technology solutions into both military and civil sectors. Currently Thales UK provides more than 50% of the ground based military flying training services to the UK MoD, has over 140 civilian facilities management sites across the UK and also provides both application and infrastructure IT solutions to the UK civilian sector.

Worldwide, Thales Service Division employs 10,000 people and generated revenues of €1.5 billion in 2005.