$8 Million in new contract awards:
Subj: Maxwell Technologies' Systems Unit Announces Contract...
Date: 9/29/98 11:03:22 PM Central Daylight Time
From: AOL News
BCC: JerryCo
Maxwell Technologies' Systems Unit Announces Contract Awards With Total Value of Over $8 Million
SAN DIEGO--(BUSINESS WIRE)--Sept. 29, 1998--Maxwell Technologies, Inc. (Nasdaq/NMS:MXWL) announced today that its Systems business unit has received four contract awards with a multi-year value of more than $8 million.
Two of the awards involve contracts relating to space and satellite applications, a promising market for Systems with significant growth potential. The other two contracts, representing the bulk of the $8 million total value, are with the Defense Special Weapons Agency (DSWA) for work on programs involving high energy simulation testing.
In the commercial arena, the Systems operation received a preliminary contract to provide analysis of solar effects on satellites. The company expects this work to significantly enhance the effective operation of satellites in space, and is focusing on playing an increasing role in this large commercial market.
On the government side, the Systems operation won an Air Force contract which is part of a larger joint NASA/Air Force Spacecraft Charging Initiative. Maxwell's role will be to replace the original software for calculating solar effects in space, known as spacecraft charging, with new upgraded software versions.
"These commercial and government contracts are a welcome addition to our work in the area of space technology," said Walt Robertson, president of Maxwell Systems. "Spacecraft charging is a critical issue in current space programs and new models developed by Maxwell scientists are being used to determine the cause of solar array anomalies, identify the damage mechanisms, and provide design solutions for future missions.
"Having participated in over a dozen satellite programs, we expect Systems to play a significant role in the emerging commercial satellite market which is expected to grow to more than $18 billion over the next five years."
Noted Robertson, "The DSWA contracts involve x-ray generators that simulate nuclear weapons effects by generating intense x-rays at very high energies. The majority of the work on the larger, $6 million program, known as DECADE, will be accomplished in San Leandro, Calif. at Maxwell's Physics International operation, which was a recent Maxwell acquisition.
"Maxwell's role will involve the design, fabrication, installation and acceptance testing of a major modification to the DECADE machine that will expand its simulation capabilities. The other contract will further Maxwell's R & D efforts on the next generation of high-energy pulse power simulators.
"Maxwell, together with its Physics International operation, has the leading team of specialists in the world in the design, development and field support of nuclear weapons effects, and this latest contract is a logical application of their expertise."
"The Systems Division experienced strong, profitable growth in 1998, and we expect these new contracts to be a factor in our achieving even higher levels of sales in the coming year," Robertson added.
"We began fiscal 1998 with 175 Systems employees, and currently have 320, a gain of more than 80%. We expect future growth to be bolstered by new opportunities in the satellite market, including both commercial and government projects, leading to a significant expansion in space-based business for Systems."
Maxwell Technologies is a leader in pulsed power technologies, providing pulsed power based systems and components for a wide range of commercial applications and research and development for both commercial customers and the U.S. government. The company's advanced technology solutions address diverse markets such as utilities, telecommunications, medical equipment and products, food processing and packaging and transportation.
The company also offers industrial computers and subsystems, primarily to OEMs in computer telephony and other markets, and software products and services, both for government research and for various commercial applications.
Except for historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties, including continued funding of federal defense programs, manufacturing and product development based on new technologies, applications and acceptance of new products in major markets, the successful integration of acquired businesses, the impact of competitive products and pricing, and other risks detailed from time-to-time in the Company's SEC reports, including the report on Form 10-K for the year ended July 31. Actual results may differ materially from those projected. These forward-looking statements represent the Company's judgment as of the date of this release. The Company disclaims, however, any intent or obligation to update these forward-looking statements.
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CONTACT:
Maxwell Technologies
Tracy L. Perry, 619/576-7547 (Media)
Larry Selwitz, 949/645-8410 (Investor)
Eugene Anton, 714/426-0228 (Investor)
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