MDA to Divest Information Systems Business for $1.325 Billion



    COMPANY TO FOCUS EXCLUSIVELY ON INFORMATION PRODUCTS

    RICHMOND, BC, Jan. 8 /CNW/ - MacDonald, Dettwiler and Associates Ltd.
(TSX: MDA), a provider of essential information solutions, announced today
that the company has executed definitive agreements for the sale of its
Information Systems and Geospatial Services operations to Alliant Techsystems
(NYSE:   ATK) for $1.325 billion in cash. Going forward MDA will focus
exclusively on expanding its faster growing and more scalable Information
Products business.
    The transaction, which has been unanimously approved by each company's
Board of Directors, is expected to close early in the second quarter, and is
subject to MDA shareholder approval, regulatory approvals in Canada and the
U.S., and various other consents and approvals typical for this type of
transaction.
    After closing of this transaction MDA will have about 1,100 employees, in
Canada, the U.S., and Europe. MDA will fully retain its capability to build
new products and operating infrastructures for its Information Products
business, preserving the company's unique strength to deliver complex
information systems to serve its customers.
    MDA plans to use most of the proceeds from this transaction to invest in
acquisitions that are aligned with its strategic plan for Information Products
in the U.S., Europe, and Canada.
    MDA President and CEO, Daniel Friedmann said: 'This transaction will
enable us to focus our management and financial resources exclusively on our
rapidly growing Information Products business, where many opportunities are
waiting for us around the world. At the same time, the operations we divest
will have greater growth potential under a complementary U.S. owner who
recognizes its inherent value, and who is better positioned than we are to
unlock this value in the U.S. market.'
    The operations being divested will be led by MDA's Executive
Vice-President of Information Systems, Magued Iskander. Upon closing ATK will
create a separate business group, ATK Space Systems, which will include the
operations being acquired from MDA, as well as other synergistic business
assets of ATK in the U.S.
    ATK's Chairman and CEO, Dan Murphy stated: 'We will benefit greatly from
the addition of MDA's talented workforce, which like our own is known for its
innovative, lower cost, yet highly reliable accomplishments. The operations we
are acquiring are very complementary, and fully align with our strategic
objective to provide complete end-to-end content to our domestic and
international customers.
    Banc of America Securities Canada Co. has acted as financial advisor to
MDA in connection with the transaction. In addition BMO Capital Markets was
retained to provide financial advice and a fairness opinion to the Board of
Directors.'

    IMPORTANT NOTICE: WEBCAST AND CONFERENCE CALL TODAY

    MDA will host a webcast and teleconference today (Tuesday, January 8,
    2008) at 5:00 p.m. EST/ 2:00 p.m. PST, to present background information
    and to answer questions from investors and analysts. The webcast and
    teleconference can be accessed at
    http://www.mdacorporation.com/investor/events/shtml. The teleconference
    is also accessible at 416-406-6419 or at 1-888-575-8232.

    About MDA

    MDA provides advanced information solutions that capture and process vast
amounts of data, produce essential information, and improve the decision
making and operational performance of business and government organizations
worldwide.
    Focused on markets and customers with strong repeat business potential,
MDA delivers a broad spectrum of information solutions, ranging from complex
operational systems, to tailored information services, to electronic
information products.
    MDA employs more than 3,000 people in locations across the United States,
the United Kingdom, and Canada. The Company's common shares trade on the
Toronto Stock Exchange under the symbol TSX: MDA. For more information see
www.mdacorporation.com.

    About ATK

    Headquartered in Edina, Minnesota, ATK is a world leader providing small
satellites and large satellite sub-systems, hypersonic engines, rocket motors
for spacecraft launch and orbit transfer - programs critical to reaching new
space frontiers.
    With approximately 17,000 employees and annual revenues in excess of
$4.1 billion (USD), ATK is the world's largest producer of solid rocket motors
and the prime contractor for the first stage of ARES I, NASA's next-generation
launch vehicle. News and information can be found on the Internet at
www.atk.com.

    Related Websites:
    www.mdacorporation.com
    www.atk.com

    Forward-Looking Statements

    This release contains forward-looking statements and information, which
reflect the current view of MacDonald, Dettwiler and Associates Ltd. with
respect to future events and financial performance. Any such forward-looking
statements are subject to risks and uncertainties and MDA's actual results of
operations could differ materially from historical results or current
expectations.  Additional information on these and other potential factors
that could affect MDA's financial results are detailed in documents filed from
time to time with the applicable Canadian securities regulatory authorities.

    The Toronto Stock Exchange has neither approved nor disapproved the form
    or content of this release.

    %SEDAR: 00014148E




For further information:

For further information: Wendy Keyzer, MDA External Relations, (604)
231-2743, wendy@mdacorporation.com


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890