Atlantis completes acquisition of Eduplus, a leading aviation and naval e-learning provider



    Acquisition provides entry into the naval market with significant new
    business opportunities, brings a valuable LMS/LCMS system to Atlantis and
    increases backlog

    This news release may contain forward-looking statements. Reference
    should be made to "Forward-looking Statements" at the end of this news
    release. All amounts are stated in thousands of Canadian dollars except
    where otherwise noted.

    TORONTO, Sept. 27 /CNW/ - Atlantis Systems Corp. (TSX: AIQ), a globally
recognized training integrator in the military, commercial aviation and energy
markets, today announced that it has completed the acquisition of the Eduplus
Division ("Eduplus") of Tecsult Inc. ("Tecsult"), a Quebec-based engineering
firm. Eduplus, based in Halifax, is an e-learning provider to the aviation and
naval defence sectors. The agreement to purchase was originally announced in
May 2007.
    Atlantis acquired Learninglogics, Eduplus' learning management system
(LMS), learning content management system (LCMS) and related intellectual
property, as well as current contracts valued at approximately $10.0 million.
Eduplus will be managed as a separate Atlantis division. In addition, Atlantis
has entered into a five-year teaming agreement with Tecsult to pursue specific
business opportunities. The teaming agreement also includes a non-competition
covenant on all same and similar business conducted by Eduplus and a right of
first refusal on any non-similar training opportunity identified by Tecsult
for a period of five years from the date of the agreement. Consideration for
these assets included a cash payment of approximately $2.5 million and 1.29 
million common shares of Atlantis. The teaming agreement includes additional
payments for the successful closing of currently identified business
opportunities. The cash portion of the acquisition will be financed through a
$2.8 million senior debt funding arrangement with a major Canadian chartered
bank. The debt has a three-year term and will be amortized over five years.
    "This transaction is consistent with our strategy of expanding our
training capabilities and growing our business through acquisitions," said
Andrew Day, President and CEO of Atlantis. "Eduplus' strong brand, stellar
reputation with the Department of Defence, e-learning expertise, and its
SCORM-compliant LMS/LCMS provides us with a strong competitive advantage as we
pursue other significant opportunities related to the Maritime Helicopter
Program, the Air Force Integrated Information Learning Environment (AFIILE)
and an ever-growing list of naval projects. In addition, the LCMS software
will enhance Atlantis' productivity on future e-learning projects."

    About Atlantis Systems Corp.

    Headquartered near Toronto, Canada, Atlantis is a globally recognized
training integrator for customers in the military, commercial aviation sectors
and energy markets. Atlantis combines desktop and full-flight simulation,
knowledge management, learning management systems, flight training devices and
multimedia e-learning to provide integrated flight training and aircraft
maintenance training to a global list of customers. For more than 29 years,
Atlantis has drawn on its extensive engineering background and proprietary
technology to offer cost-efficient, state of the art alternatives to real-life
conditions and situations. Atlantis is registered under a number of quality
management programs including ISO 9001:2000, AS 9100:2004, CSA-Z299.1-1985,
Boeing BQMS D6-82479 and Rockwell Collins RC-9000, among others. To learn
more, please visit the Company's web site at www.atlantissi.com.

    Forward-Looking Statements

    Certain statements in this release are considered "forward-looking".
These forward-looking statements are based on current expectations and various
estimates, factors and assumptions and involve known and unknown risks,
uncertainties and other factors. The material factors and assumptions that
were applied in making the forward-looking statements in this release include
but are not limited to assumptions regarding: the proportion of in-house and
subcontractor work on the CFTS program and the ability of subcontractors to
meet deadlines on this program; the level of activity under the CFTS program;
the proportion of CFTS to non-CFS revenue; our ability to complete new and
existing projects on time and on budget; our ability to win new projects; the
performance of subcontractors generally; expected developments in the nuclear
and aerospace industry; ASA's capability to deliver e-learning and other
programs on time and on budget; the level of spending on the Company's direct
U.S.-market initiative; and matters relating to the agreement with Tecsult
Inc., including due diligence, achievement of board and regulatory approvals
and plans for an ongoing relationship with Tecsult Inc. Material factors that
could cause Atlantis' actual results to differ materially from the
forward-looking statements in this release include risks and uncertainties
relating to: our ability to convert sales and marketing pursuits into order
backlog; reliance on subcontractors; the Company's U.S. subsidiary, ASA;
reliance on key customers; the level of military expenditures and developments
in the nuclear and aerospace industry; relationships with existing U.S. prime
contractors; the availability of skilled personnel; and the agreement with
Tecsult Inc. Atlantis cannot provide any assurance that the predictions of
forward-looking statements will materialize. Atlantis assumes no obligation to
update or revise any forward-looking statement, whether as a result of new
information, future events or any other reason. Additional information
regarding risks and uncertainties that could affect Atlantis' business is
contained in the Business Risk Factors section of Atlantis's Annual MD&A and
the Description of the Business - Risk Factors section in Atlantis' Annual
Information Form, both of which are available on SEDAR at www.sedar.com.

    %SEDAR: 00002161E




For further information:

For further information: George Chiarucci, Chief Financial Officer, Tel:
(905) 792-1981, Email: gchiarucci@atlantissi.com

Organization Profile

ATLANTIS SYSTEMS CORP.

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