Ottawa Provides $27 Million Repayable Investment to Further Strengthen Héroux-Devtek's Landing Gear Division Research and Development Investments



    LONGUEUIL, QC, Sept. 3 /CNW Telbec/ - Héroux-Devtek Inc. (TSX: HRX), a
leading Canadian manufacturer of aerospace and industrial products today
announced that Industry Canada is making a $27-million repayable contribution
for the research and development of Héroux-Devtek's advanced landing gear
technologies. The funds will be used as part of the Company's $77-million
project to improve the reliability and performance of landing gear systems, as
well as reducing their impact on the environment. The investment will be over
a six year period. The contribution received will become gradually repayable
effective one year after the completion of the project.
    The $27 million investment is being made through the Government of
Canada's Strategic Aerospace and Defence Initiative (SADI), which supports
strategic industrial research and pre-competitive development projects in the
aerospace, defence, space, and security industries.
    The ambitious Héroux-Devtek project is multi-faceted. In addition to
exploring materials and manufacturing processes to improve the performance and
reduce the environmental footprint of landing gear, the Company will also
develop landing gear components for the next generation of aircraft, such as
in-flight monitoring and electronic systems. These technologies will make
landing gear more secure and reliable, and will help detect problems before
they occur.
    Gilles Labbé, President and CEO of Héroux-Devtek, stated that R&D is
crucial to the continued success of the Company. "We have committed about 4%
of our annual revenues to the development of new products and technologies.
This has helped us win three new major landing gear programs over the past
15 months alone. We welcome this opportunity to partner with the federal
government through SADI. This will enable us to enhance our design and
manufacturing capabilities in order to more efficiently integrate landing gear
components into complete systems. This will allow the Company to expand its
role as a supplier of fully integrated systems, in addition to being a
supplier of components."
    The project will have a positive economic impact on both the Metropolitan
Montreal and Kitchener, Ontario regions where Héroux-Devtek has manufacturing
facilities.

    About Héroux-Devtek

    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 systems (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.
Approximately 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
Rivière-des-Prairies); Kitchener and Toronto, Ontario; Arlington, Texas and
Cincinnati, Ohio.

    Forward-Looking Statement

    Except for historical information provided herein, this press release may
contain information and statements of a forward-looking nature concerning the
future performance of the Company. These statements are based on suppositions
and uncertainties as well as on management's best possible evaluation of
future events. Such factors may include, without excluding other
considerations, fluctuations in quarterly results, evolution in customer
demand for the Company's products and services, the impact of price pressures
exerted by competitors, and general market trends or economic changes. As a
result, readers are advised that actual results may differ from expected
results.




For further information:

For further information: Héroux-Devtek Inc.: Gilles Labbé, President and
Chief Executive Officer, (450) 679-3330; MaisonBrison: Martin Goulet, CFA,
(514) 731-0000

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