COM DEV Announces Cost Overrun on Program

    CAMBRIDGE, ON, April 18 /CNW/ - COM DEV International Ltd. (TSX: CDV)
today announced that the Company has encountered an unanticipated problem on a
program that will require additional work to be done before a multiplexer
order can be shipped to the customer. The Company has completed a root cause
analysis and determined definitively that the problem is isolated to the one
    The Company is working closely with the customer to determine the extent
to which work must be redone in order to resolve the situation to the
customer's satisfaction. The overall financial impact to COM DEV is expected
to be up to $9 million, primarily comprised of an up-front recognition of
costs that will be incurred in coming months with no matching revenues. More
than 90% of the charge will be recognized in the fiscal second quarter ending
April 30, 2007, resulting in an expected net loss for the quarter of
approximately $4 million. The Company is maintaining its previously stated
guidance of 10% revenue growth for fiscal year 2007. Gross margin in the
second half of the year is expected to remain within the previously estimated
percentage range of mid-to-high 20s.
    "We are confident that we have identified and rectified the root cause of
this problem and we will take every action necessary to ensure that similar
issues do not recur," said Mike Pley, President of COM DEV. "The reliability
of our products is our number one priority, and it was our own rigorous
testing procedures that uncovered this problem. Outside of this issue our
business remains very solid. As expected, new orders have been robust in the
second quarter."

    About COM DEV

    COM DEV International Ltd. (, based in Cambridge, Ontario,
is the largest Canadian-based designer and manufacturer of space hardware
subsystems. With facilities in Canada, the United Kingdom and the United
States, COM DEV manufactures advanced products and subsystems that are sold to
major satellite prime contractors for use in communications, space science,
remote sensing and military satellites.

    COM DEV and COM DEV Space are registered trademarks of COM DEV
International Ltd. This news release may contain certain forward-looking
statements that involve risks and uncertainties. Actual results may differ
materially from results indicated in any forward-looking statements. The
Company cautions that, among other things, in view of the rapid changes in
communications markets and technologies, and other risks including the cost
and market acceptance of the Company's new products, the level of individual
customer procurements and competitive product offerings and pricing, and
general economic circumstances, the Company's business prospects may be
materially different from forward-looking statements made by the Company.

    %SEDAR: 00003673E

For further information:

For further information: Gary Calhoun, Chief Financial Officer, Tel:
(519) 622-2300 ext. 2826, Fax: (519) 622-2158,; Jeff
Codispodi, The Equicom Group, Tel: (416) 815-0700 ext. 261, Fax: (416)

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