Lockheed Martin awards Héroux-Devtek additional contracts worth $26.5 million

Héroux-Devtek Inc. (TSX: HRX), a leading Canadian manufacturer of aerospace and industrial products, today announced that its Aerostructure Division has been awarded two additional contracts by Lockheed Martin Aeronautics Company for the F-35 Joint Strike Fighter (JSF) Program and for the F-16 Fighting Falcon.

The combined value of the new orders is $26.5 million. Progressive, Inc., Héroux-Devtek's business unit based in Arlington, Texas, will continue to perform manufacturing development and production of wing carry-through bulkheads, wing structural components, and numerous other complex machined parts for the Carrier Version (CV) of the Lockheed Martin F-35 Lightning II aircraft.

The contract includes production of the first 7 shipsets of component assemblies for the CV variant of the Lightning II. Deliveries of the first units will begin in the second quarter of calendar 2007 and are scheduled to be completed by early 2008. The second contract, for the Lockheed Martin F-16 Fighting Falcon, is for structural modification kits containing complex structural components, assemblies and hardware for specific aircraft configuration as part of the US Air Force and allied countries upgrade program. Deliveries are to begin this quarter, running through the first quarter of calendar 2008.

"We have come full circle with Lockheed Martin on the F-35 JSF program. Last summer we received an order for machined components and assemblies for the F-35 Short Take-off/Vertical Landing (STOVL) variant.

In January the Company was awarded additional business on the Conventional Take-Off and Landing (CTOL) aircraft. With today's additional win on the CV version, this means our Aerostructure Division will be working on all three models of the F-35 and clearly underlines the confidence Lockheed Martin places with Héroux-Devtek," stated Rick Rosenjack, Vice-President and General Manager of Héroux-Devtek's Aerostructure Division. Héroux-Devtek (TSX: HRX), a Canadian company, serves two main market segments: Aerospace and Industrial Products, specializing in the design, development, manufacture and repair of related systems and components. Héroux-Devtek supplies both the commercial and military sectors of the Aerospace segment with landing gear (including spare parts, repair and overhaul services) and airframe structural components. The Company also supplies the Industrial segment with large components for power generation equipment and precision components for other industrial applications. Over 70% of the Company's sales are outside Canada, mainly in the United States. The Company's head office is located in Longueuil, Québec with facilities in the Greater Montreal area (Longueuil, Dorval, Laval and Rivières-des-Prairies); Kitchener and Scarborough, Ontario; Arlington, Texas and Cincinnati, Ohio. Lockheed Martin The F-35 Joint Strike Fighter program is a United States-led multinational effort to build an affordable, next-generation, multi-role, supersonic fighter aircraft. Canada has been an active partner in the JSF program, participating in both the Concept Demonstration Phase and the System Development and Demonstration Phase, which has allowed DND and Canadian industry to be part of a cutting-edge, international military program.

The Government of Canada has contributed US $160 million to these first two phases and has entered into negotiations for participation in the third and final phase. According to DND's JSF Project Office, to date, 46 Canadian companies, universities and government facilities have won more than 140 contracts valued at more than US $380 million. Héroux-Devtek manufactures the nose and main landing gear for Lockheed Martin's C-130J Super Hercules tactical transport aircraft in Longueuil, Quebec.

A total of 180 C-130Js are on order, and 131 have been delivered to the U.S. Air Force, U.S. Marine Corps, U.S. Coast Guard, Royal Air Force, Royal Australian Air Force, Italian Air Force and the Royal Danish Air Force. Operators from around the world are flying the aircraft at a high tempo in combat and humanitarian relief operations, and are all experiencing the high reliability, range, speed and payload capabilities it was built to deliver.

The recent announcement by the Government of Canada to pursue the replacement of its oldest CC-130 Hercules presents additional opportunities for Héroux-Devtek should the C-130J-30 Super Hercules be selected for the Airlift Capabilities Project - Tactical.