Electro Optic Systems Holdings Limited A.C.N. 092 708 364 Level 9, 185 Macquarie Street, Sydney NSW 2000 Tel 61 2 9233 3915 Fax 61 2 9232 3411 Email [email protected] http://www.eos-aus.com 4 July 2003 The Manager Company Announcements Office Australian Stock Exchange Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 Dear Sirs, EOS secures multi-million dollar Mt Stromlo contracts In January 2003 Electro Optic Systems Holdings Limited (“EOS) announced that the Mount Stromlo laser space tracking facilities of both Geoscience Australia and EOS had been completely destroyed in bushfires. EOS was the original provider of both facilities and also operated and maintained the Geoscience facility under contract to Geoscience. Recovery from the impact of the bushfires is now well under way. 1. Geoscience Australia Laser Tracking Facility EOS is pleased to announce that it has reached agreement with the Commonwealth of Australia, represented by Geoscience Australia, for the construction and subsequent operation and maintenance of a new Geoscience laser tracking facility at Mt Stromlo, Australia. The value of the agreements is approximately $10m and the reinstatement component is already in effect, with EOS eligible to invoice over $2m of completed work. EOS expects the new Geoscience Australia facility to be operational by late 2003 and to complete all prerequisite quality tests for the resumption of satellite data delivery for Commonwealth programs by early 2004. 2. EOS Space Tracking Facility EOS’ own fire losses were insured and EOS is working closely with its insurers and insurance claim consultants, PriceWaterhouseCoopers, to expedite the reinstatement of its facilities. EOS has lodged claims or claim notices exceeding $5m with its insurer and has received progress payments of $2m under these claims. EOS expects full reinstatement of its facilities in late 2003. The new EOS facilities will replace those lost in January 2003. Those facilities and associated technologies were developed by EOS over five years to demonstrate a unique capability for the accurate detection and tracking of small space debris. Commercial exploitation of this technology for protection of manned and unmanned space assets is expanding on schedule. Key lead customers in this market are engaged with EOS in the late stages of testing and demonstration. This effort will resume at Mount Stromlo in late 2003. 3. Demonstration and Test Facilities At Mount Stromlo, EOS had commenced development of a long-term test facility for major telescopes and astronomical equipment immediately prior to the fire. Although a few items were destroyed in the fires, this facility has been completed and is now operational. A 2m telescope and observatory system produced by EOS and owned by NASA is the first major system to be installed for long-term (12 month) testing. The facility will accommodate telescopes up to 4m and is designed to verify performance beyond the current state-of-the-art for the next generation of EOS optical telescopes. These telescopes address emerging market requirements for higher performance systems. [For pictures of the facility visit http://www.eos-aus.com/gallery_Stromlo_2m.htm] The EOS and Geoscience Australia facilities referred to above are unrelated to telescope and observatory facilities of the Mount Stromlo and Siding Springs Observatory (MSSSO), the principal occupant of the Mount Stromlo site. MSSSO has not yet announced any decision with respect to the replacement of its telescope and observatory facilities lost in the same fires. Also, Commonwealth funding attributed above to Geoscience Australia is unrelated to any Commonwealth funds announced in the 2003 budget for replacement of MSSSO astronomy facilities at Mount Stromlo. EOS is also currently in late-stage negotiations and legal documentation with other parties on several projects in both its space systems and weapon systems businesses. Yours faithfully, Dr Ben Greene Chief Executive Officer For information contact Ron Thompson [+61 2 6298 8008] or Ben Greene [+61 2 6298 8010]. For general information visit http://www.eos-aus.com.
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