Swedish CybAero lands order for unmanned helicopters worth SEK 700-800 million to China

First North-listed CybAero, which develops and sells unmanned helicopters, has
received an order guarantee worth SEK 700-800 million through an eight-year
framework agreement. The order has been placed by a company in the Chinese AVIC
group, one of the world’s largest companies which develops and manufactures
aircraft and various types of flying vehicles and has over 400,000 employees.
The order is dependent on an export permit being issued by the Swedish Agency
for Non-Proliferation and Export Controls (ISP).

The order is linked to a framework agreement, through which AVIC has committed
to purchasing at least 20 helicopter systems during the first three years and at
least a further 50 systems during the following five years. This gives a total
order value of SEK 700-800 million, depending on the final design of the
systems. Each system includes helicopters, ground stations and data links. The
agreement also covers training and support.

“This represents a breakthrough in the market for the civil application of
unmanned helicopters. Our goal is to become the global market leader with at
least 30 percent of the global market. Through this order, which is our biggest
to date, we’ve taken a significant step towards achieving this goal,” says
Mikael Hult, CybAero’s CEO.

To be used by customs, coastguard services and agriculture
CybAero will establish a joint company with AVIC in order to gain access to its
volumes and production expertise. In the long-term, the company may carry out
some production locally in China for the Asiatic market. CybAero expects to
achieve economies of scale through the joint company, which among other things
will result in the further streamlining of operations and the potential to
operate closer to the local Asiatic market.

Through the joint company, AVIC will entirely target the civil and commercial
markets, e.g. customs and coastguard services, the energy sector, agriculture,
mapping and rescue services, etc.

“The order is the largest ever anywhere in the world in the product segment
within which CybAero operates, i.e. vertical take-off and landing unmanned
aerial vehicles weighing less than 200kg. This order will be worth nearly SEK
100 million a year if we can turn out the orders over the eight years covered by
the agreement. This will provide a stable basis for our entire business for many
years to come,” says Mikael Hult, and continues:

“A condition of the order for AVIC is the granting of a permit by the Swedish
Agency for Non-Proliferation and Export Controls, but we don’t anticipate there
being any problem with this at present. We received an order from the Chinese
customs authorities in January worth SEK 50 million, and we have been granted an
export permit for this order, which is more complex and technologically
advanced. The equipment for which we have now received an order is part of our
standard system,” says Mikael Hult.

The agreement and order will not give rise to any further financing requirements
for CybAero. Payments will be made by AVIC on an ongoing basis as deliveries
take place.

Linköping – a global centre for unmanned helicopters
CybAero, which is based in Linköping, has already doubled its workforce from 20
to 40 people and plans to take on more employees. The company is also currently
increasing its production capacity, partly through its own production facilities
and partly through subcontractors.

“The agreement further demonstrates that Linköping and Sweden are at the
forefront of the development and production of unmanned vehicles,” says Mikael
Hult.

CybAero’s unmanned helicopters have attracted global attention because they are
easy to maintain, robust and cost-effective. They have a range of 20 miles and a
flying time of up to six hours.

“The Chinese market has huge potential, and we’re convinced that this agreement
will generate further business,” says Claes Drougge, chairman of the company’s
board, who has participated very actively in the negotiations and helped to
bring about the agreement.

Press meeting
Mikael Hult, CybAero’s CEO, will hold a press meeting in Almedalen concerning
the order. The meeting will take place later today at the Aviation Day (Flygets
dag) in East Sweden Garden at 4.05pm. Further information regarding the press
meeting will be given in a separate invitation.
For more information, please contact:
Mikael Hult, CEO CybAero AB, tel. +46 (0)70 564 25 45, e-mail:
mikael.hult@cybaero.se

Read online: www.cybaero.se                          Videos:
www.youtube.com/cybaero
About CybAero
CybAero AB develops, manufactures and sells autonomous unmanned helicopters
(known as VTOL UAV) and their associated sensor systems for both the defence and
civil sectors. CybAero was established in 2003, but the foundations of the
business were laid back in 1992 through a research partnership between Linköping
University and the Swedish Defence Research Agency (FOI). CybAero has now
established itself as a leading global player within the VTOL-UAV sector. The
company’s user-friendly, robust and cost-effective APID product has attracted
global attention. CybAero’s head office is situated at Mjärdevi Science Park in
Linköping. The company has around 40 employees and has been listed on the NASDAQ
OMX First North exchange since 2007. Remium Nordic AB (+46 (0)8 454 32 00) is
the Certified Adviser.