Héroux-Devtek Inc. (TSX:HRX), a leading Canadian manufacturer of aerospace and industrial products, today announced that Lockheed Martin Aeronautics Company has awarded the aerostructure division of Héroux-Devtek (Progressive Inc.), another multi-year contract to manufacture complex structural machined parts and assemblies for the F-35 Lightning II aircraft (Joint Strike Fighter).

Under the terms of the agreement, Progressive, located in Arlington, Texas, will fabricate, assemble and deliver complex structural components and assemblies for the outer wing, inner wing, and forward fuselage for all three F-35 variants in support of Low Rate Initial Production (LRIP) lots 3 through 7 over the next five years. The F-35 aircraft quantity will ramp up throughout this period, with production rates currently planned to exceed 100 aircraft per year near the end of this contract.

This contract begins in the second half of 2009 and continues through the first half of 2014, at which time the F-35 program enters its first multi-year procurement phase. Based on best estimated quantity production rates, the value of the contract is estimated to be in excess of Cdn$50 million. This latest mandate is in addition to a Cdn$135 million, multi-year contract awarded in 2007 for forged aluminum bulkheads and other complex components.

Progressive opened a new 72,000 square feet facility in 2007 and subsequently invested in additional state of the art, high speed equipment to support this program and other military involvements. Since 2007, Héroux-Devtek has invested more than Cdn$28 million at Progressive and now has over 220,000 square feet of manufacturing space in Texas.

"Héroux-Devtek is proud to be increasingly involved in the F-35 program, which is considered to be the largest ongoing military program over the next 20 years," said Gilles Labbé, President and Chief Executive Officer of Héroux-Devtek. "This agreement confirms our status as the largest F-35 aerostructure supplier for Lockheed Martin and further highlights our solid business relationships and proven reputation for superior quality and customer service."

"The selection of Héroux-Devtek for these critical F-35 components shows the confidence of Lockheed Martin in our technology and our people," said Rick Rosenjack, Vice President and General Manager of the Aerostructure Division. "Our investment in manufacturing development and new technology for complex, monolithic components continues to receive interest from a number of OEMs. This particular contract was competed worldwide and we are very pleased that the Lockheed Martin team chose Héroux-Devtek's Aerostructure Division."

"Lockheed Martin is pleased to team up with Héroux-Devtek Inc., a key partner in the fabrication, assembly and delivery of complex structural components for all three F-35 variants," mentioned Tom Burbage, Executive Vice President and general manager of F-35 Program Integration. "Héroux-Devtek's participation in the program has been exemplary. We look forward to this next phase of production as we bring this only 5th generation multirole fighter to our nine partner nations."