ABN Newswire

Electro Optic Systems Holdings Limited (ASX:EOS) Update on CROWS Remote Weapon System Program

newsroom@abnnewswire.net — Tue, 6 Dec 2011 13:58:00 GMT

Electro Optic Systems Holdings Limited (ASX:EOS) is to re-locate its US remote weapon system' production facilities from Tucson Arizona to Huntsville, Alabama to position alongside the Northrop Grumman Corporation (NYSE:NOC) facility. The move is being made to maximise EOS and NGC's competitiveness as they set out to jointly bid for a major contract for remote weapons systems from the US Army.

In May of 2010, EOS announced it had teamed with NGC to compete for US requirements for remote weapon systems (RWS), including the US Army CROWS program. The teaming arrangements include an allocation of work-share between NGC and EOS production plants. NGC facilities for RWS are already located in Huntsville.

The move will result in a cluster of development, production, and logistic support capabilities for RWS in Huntsville and drawing on both NGC and EOS resources and capabilities.

EOS CEO, Dr Ben Greene, said that centralising all RWS operations would significantly reduce costs and eliminate management, logistics and co-ordination issues potentially associated with geographically separate plants.

"Price will be a key element in the CROWS contract award in 2012 and for RWS markets in future. This move will improve our team's competitiveness for all RWS business activities envisaged in the 2010 teaming arrangements with NGC."

The contract parameters for CROWS as announced by Army to this date are:

- Contract Value: The value of the initial contract award will be approximately US$970 million.

- Scope of Work: The contracted effort will include three mandatory elements:

i. Production of up to 3,000 CROWS and spare parts.

ii. Product improvements, integrations, and testing.

iii. Training, overhaul, maintenance, and product support.

- Number of Contracts: A single contract award will be made for CROWS, with one contractor required to perform the entire scope of work.

- Schedule: A contract will be awarded by Q4 2012.

Announcing the relocation decision the CEO of EOS Dr Ben Greene said:

"By relocating EOS production facilities to Huntsville, the NGC-EOS team can improve our price competitiveness not only for production, but also for every other element in the CROWS statement of work."

"In 2010 EOS extensively upgraded its Tucson, Arizona production plant, but additional cost savings from co-locating in Huntsville with NGC will result in a more competitive price for future procurements under intensified competition triggered by substantial cuts in US defence spending and other global economic developments."

"The EOS Tucson plant will transition to Huntsville in mid-2012. We do not expect any significant asset impairment from this decision."

"The company is mindful of current economic circumstances, and is announcing this change well in advance and as early as possible to allow EOS to provide support for Tucson staff who may be affected over the months leading up to the transition," Dr Greene added.

In a parallel development, the company also intends to re-position its Australian technology development and production capabilities to work more closely with licensed production facilities designated by key customers.

Commenting on this development, the Chief Executive of EOS' Defence Systems business, Mr Mark Bornholt, said:

"Most EOS customers for RWS are governments, and the current economic climate has escalated their concerns for local employment. Many now require significantly increased local production as a condition of any new RWS order."

"EOS has adapted quickly to this emerging trend with flexible business models including manufacture under license and technology suited to local production."

"In dialogue with current and potential customers we have isolated the activities suitable for their domestic industry while focussing EOS resources on supporting those activities, as well as improving the efficiency and effectiveness of EOS' execution of in-house production."

Ben Greene
Chief Executive Officer 
Ph: +61-414-365-658

Mark Bornholt
EOS Chief Executive Officer Defence Systems
Ph +61-40-404-2528
http://www.eos-aus.com

Electro Optic Systems Holdings Limited (ASX:EOS) Appoints Kevin Scully as Non Executive Director

newsroom@abnnewswire.net — Mon, 19 Sept 2011 10:54:00 GMT

Electro Optic Systems Holdings Limited (ASX:EOS) is pleased to announce that Mr Kevin Norbert Scully has joined the Board of the Company as a non executive director effective from 19 September 2011.

Kevin Scully has more than 26 years of experience in equities research and analysis, corporate advisory and related matters, having worked for more than 12 years in various positions such as the head of research of [Schroder Securities (Singapore) Pte Ltd] and director of [Schroder Asia Securities (Hong Kong) Limited] and the last 11 years in the Netresearch group.

From 1982 to 1984, Kevin Scully was a foreign service officer in the regional and economic division of the Ministry of Foreign Affairs of Singapore.

Kevin Scully started his career in the finance sector in 1984 as an investment analyst in Lyall & Evatt (Pte) Ltd and remained so till 1986.

Kevin Scully joined Schroder Securities (Singapore) Pte Ltd, a licensed dealer in securities, as an investment analyst with a focus on the media, food, property and plantation sectors for the Singapore and Malaysian stock markets from 1986 to 1989. He was subsequently promoted and served as head of research of Schroder Securities (Singapore) Pte Ltd from 1989 to 1998.

In 1995, Kevin Scully also assumed the position of managing director of Schroder Securities (Singapore) Pte Ltd and was responsible for, inter alia, broking operations in Singapore and research operations in Malaysia and Thailand. He was also appointed as director of Schroder Securities Asia (HK) Ltd, the regional base of the stock-broking business of the Schroder group for the region of Asia excluding Japan, in 1995 and served as such till 1998.

Kevin Scully left the Schroder group in 1998 and assumed the role of director and head of research at UOB Kay Hian Research Pte Ltd till July 1998.

Between October 1998 and June 1999, Kevin Scully oversees and manages the research operations of HSBC Securities (Singapore) Pte Limited as its director and head of research.

Kevin Scully founded Netresearch Asia Holdings Pte Ltd ("Netresearch") in July 1999 as an independent investment research company. Kevin Scully is also an executive director of companies related to Netresearch, which includes, inter alia, NRA Capital Pte Ltd ("NRA") and Hazelite Holdings Pte Ltd. The Netresearch group of companies provide, inter alia, corporate finance advisory services on mergers and acquisitions, equities offerings and corporate restructuring.

Kevin is an advisor to two regulatory authorities of the Singapore Government (Commercial Affairs Department and the Monetary Authority of Singapore) since 1999.

Kevin Scully is currently a member of the Endowment Fund Investment Committee & Strategic Finance Committee of his alma mater, St Joseph's Institution. He is also a member of the Investment Committee of the SIM Group and Chairman of the Audit Committee of the Eurasian Association.

Kevin Scully had previously been appointed as a non-executive director of GRP Limited (SIN:G18) and Rotol Singapore Ltd (both of which are currently listed on the main board of the SGX-ST). He is currently an Independent Director and Chairman of the Audit Committee of PNE Micron Holdings Limited. Kevin Scully holds a Bachelor of Social Science (Honours) in Economics from the National University of Singapore.

Fred Bart
Chairman
Tel: +61-2-9233-3915 
Fax: +61-2-9232-3411
http://www.eos-aus.com

Electro Optic Systems Holdings Limited (ASX:EOS) Update on Remote Weapon System Business

newsroom@abnnewswire.net — Thu, 8 Sept 2011 15:55:00 GMT

Electro Optic Systems Holdings Limited (ASX:EOS) (PINK:EOPSY) provides an update on remote weapon system business.

1. New Contract Award

Electro Optics Systems Holdings Limited has this week been awarded a A$7.4 million contract by an existing long-term customer for the supply of remote weapon systems. The new contract is for the supply of the EOS R-400 product configuration and will be filled over the next 6 months. Orders are typically delivered over 12 months or more, and this delivery has been expedited for customer convenience and to achieve efficient production.

Although new customers are sought and achieved, EOS receives the majority of its remote weapon systems business from existing customers reflecting the company's commitment to quality, technology, performance and long-term product support.

The new order combines with other orders in production and contracts under negotiation to create a significant backlog of orders for future production. The order backlog is a key factor in planning the efficient work flow in EOS production facilities and those of its suppliers.

2. US Army Updates CROWS Acquisition Update

In May of 2010, EOS announced it had teamed with Northrop Grumman Corporation to compete for US Army requirements for remote weapon systems, including the US Army CROWS program for remote weapon systems. EOS has issued several updates since then on the Army's progress towards awarding the next CROWS contract.

On 2 September 2011 the US Army released further details relating to its acquisition of remote weapon systems, technology and support under its CROWS program. The announcement updates key aspects of the CROWS acquisition:

A. Contract Value.

The value of the initial contract award by Army will be approximately US$970 million. Army has always had full discretion in setting the value of the initial CROWS 3 contract, and no contract value had previously been released.

B. Scope of Work.

The scope of work has been confirmed to include three mandatory elements:

I. Production of up to 3,000 CROWS and spare parts.

II. Product improvements, integrations, and testing.

III. Training, overhaul, depot-level, field maintenance support, recapitalisation/reset of CROWS, and general engineering support, as required.

The restriction of the production quantity to 3,000 units from the previously-announced requirement for 18,000 units is consistent with an initial contract value of A$970 million. A re-compete for further quantities may be applied in future by Army. The contract scope is otherwise unchanged from previous Army updates, and conforms to the scope performed by EOS and Northrop Grumman Corporation under other programs.

C. Production Risk.

Army has clarified how it expects to reduce production risk and achieve the same product performance risk from a new contractor as achieved with current CROWS systems. The statement reads in part:

"The CROWS will be built to a detail specification. The detail specification includes the performance requirements and technical drawings. The detail specification states the design requirements, how the requirements are to be achieved and how the components are to be fabricated or constructed. The detail specification does not include technical drawings and assembly procedures for some sub-assemblies, which are to be made by qualified directed sources at least until the First Article Testing phase. This approach will ensure a very high level of commonality between the new CROWS producer and commonality/interchangeability with existing CROWS systems."

This is the position anticipated by EOS. Provided the technical documentation to be released by Army reaches the standard expected, EOS believes its team's extensive experience in production of various types of weapon systems will allow it to quickly produce products that meet the Army's desired level of commonality and interchangeability.

D. Production Scalability

Army has further clarified consistent earlier [since 2009] indications that it expects the new producer of CROWS to provide a scalable production capability that can efficiently produce "from 0 to 50 CROWS per month with the ability to surge to 150 CROWS per month". This is an extraordinary requirement and essentially means that EOS must be profitable in this business segment without CROWS production since it is not otherwise possible to efficiently provide a wide range of CROWS outputs, based on a minimum monthly output of zero.

Over the past 2 years EOS has achieved sufficient orders and backlog to keep its production resources cost-effectively active at a level that allows the responsive production scalability required by Army. EOS has also extensively updated and upgraded its US production plant, originally built for producing CROWS in large volume in 2005, specifically to allow efficient scaling of output without burdening smaller orders [including smaller CROWS periodic orders] with the cost of idle plant capacity.

These plant and process improvements are operational. EOS has demonstrated in recent years that its business model is sustainable if CROWS is excluded, even when meeting expenses for CROWS requirements. This places EOS in a strong position to meet CROWS requirements, and to grow independently of CROWS.

E. Number of Contractors.

In an earlier public update [10 March 2011] EOS had advised: "The Government's intent is to award multiple (two or more) Indefinite Delivery / Indefinite Quantity (ID/IQ) contracts, however the Government reserves the right to make one award."

The Government [Army] has now clarified that its current intention is to make a single award for one company to perform the entire scope of work.

F. Schedule

The acquisition schedule is generally unchanged from previous Army updates, although more specific dates for key events have been released. Army expects to call for proposals [tenders] by late in 2011. The normal tender response period is around 60 days, suggesting an award by Q2 2012.

The Army's 2 September 2011 update makes no change to the procurement that would require significant change to the competitive approach for CROWS adopted by EOS as part of the Northrop Grumman Corporation team. The team will compete vigorously for any award that Army makes for CROWS.

Ben Greene 
Chief Executive Officer EOS 
Ph: +61-414-365-658 

Mark Bornholt
Chief Executive Officer Defence Systems
Ph: +61-040-404-2528
http://www.eos-aus.com

Electro Optic Systems Holdings Limited (ASX:EOS) Wins Space Contract

newsroom@abnnewswire.net — Wed, 24 Aug 2011 13:08:00 GMT

Electro Optic Systems Holdings Limited (ASX:EOS) has this week been awarded a $3 million Department of Defence Concept Technology Demonstrator (CTD) contract to demonstrate that its electro-optic space surveillance sensors integrate and operate effectively with existing space surveillance sensors.

In the period 2005-2010 the EOS sensors, based on laser and optical technology, had demonstrated all the performance expected for next-generation space tracking requirements, except [a] operational cost-effectiveness and [b] the ability to operate with existing infrastructure.

Since 2010 EOS has been engaged under Australian Space Research Program (ASRP) funding of $4.3 million to demonstrate the operational cost-effectiveness of its space surveillance sensors, principally through fully automated operation of sensors capable of long-range and accurate tracking. These operational extensions will be completed in 2012.

The Defence Concept Technology Demonstrator (CTD) contract, announced today by the Minister for Defence Science and Personnel, Warren Snowdon, will now require those sensors to be tested in real-time operations with existing space surveillance radars, to establish that new sensors can operate effectively within existing tracking infrastructure which represents many billions of dollars of investment.

"This project seeks to show how precision laser tracking systems can co-operate with radar tracking systems to detect and then pin-point space objects. Once the laser has a lock on the object, it can determine the orbit with high precision," Said Dr Craig Smith, CEO of EOS Space Systems Pty Limited, the EOS subsidiary undertaking the effort.

Knowing the precise track of space objects is critical for satellite operators to avoid costly collisions in orbit."

NASA and ESA (European Space Agency) studies estimate that there are at least 300,000 uncontrolled objects of 1cm diameter or larger orbiting the Earth. Each of these objects is capable of causing catastrophic damage should they collide with an active satellite. Much of modern life and defence capability depend upon satellites, and EOS' technology offers the potential to better protect these valuable assets.

"Satellites are vital to so much or our daily lives," said Smith. "Everything from your car's GPS signal to international commerce and many TV shows, depend upon satellites. And, of course, satellites are integral to many vital military systems. Avoiding collisions in space is paramount and knowing the location of space junk is obviously fundamental to collision avoidance."

The US North American Aerospace Defence system uses radars to track a number of the larger objects and orbit predictions generated from these tracks are used to assess likely collisions. If feasible, active satellites manoeuvre to avoid potential collisions.

"The failure to predict the recent collision between an active Iridium satellite and a large debris object (Cosmos) has shown that the orbit predictions generated from current radar data alone do not provide sufficient accuracy to reliably predict all collisions. A means to improve the accuracy of satellite and debris orbit predictions is required if future collisions are to be predicted and avoided," said Dr Smith.

Over the past 20 years EOS has developed techniques and technology which uses active laser tracking to provide extremely accurate (within one metre) measurements of small space debris and satellite orbits. This capability significantly enhances the accuracy of orbits and collision avoidance predictions.

The CTD Contract announced today will involve the expertise of EOS and its partner Northrop Grumman to examine how EOS' Australian-based sensors could be linked to US-based radar to track space objects more accurately and effectively than either system could achieve alone.

The CEO of EOS Dr Ben Greene, commenting on the awarding of the contract said: "There is a very large international investment in space surveillance radar technology, and this infrastructure will continue to operate well into the future. However EOS sensors can augment and enhance the operational effectiveness of these existing investments to provide timely and efficient collision avoidance.

"There is little doubt that radar and optical technologies can each deliver key parts of the overall solution for safe satellite operation in space. However this contract represents the first time the combined operation of these systems will be operationally tested.

"We expect this will be a major step towards the long-term protection of valuable space assets, and the preservation and conservation of the vital space environment," Dr Greene added.

Ben Greene 
Chief Executive Officer EOS 
Mob: +61-414-365-658 

Craig Smith
Chief Executive Officer EOS Space Systems
Ph: +61-414-365-368
http://www.eos-aus.com

Electro Optic Systems Holdings Limited (ASX:EOS) Achieve Significant Developments in Remote Weapon System Business

newsroom@abnnewswire.net — Thu, 28 July 2011 09:24:00 GMT

Electro Optic Systems Holdings Limited (ASX:EOS) continues to expand its remote weapon systems business with increasing market success.

New Market Penetration

In June 2011 EOS executed agreements to supply remote weapon systems to a significant military customer which had not previously purchased remote weapon systems from any source.

The sale was achieved in open competition and after competitive firing trials in the foreign country, where the EOS product excelled. The program requirement is approximately 400 weapon systems over approximately 5 years, subject to annual budget appropriations. Delivery of this order will commence within 2011.

EOS expects the longer term requirements of this customer to be substantially in excess of this initial program requirement, and the current order places EOS and its' local partners in a strong position for future procurements.

This order represents a significant breakthrough for EOS, since the customer is a major military organisation not in the Australian region which has made its decision only after an exhaustive selection process open to all RWS providers globally.

EOS Incorporates in Singapore

In June 2011 EOS Defence Systems Pte Limited was established as a wholly-owned subsidiary of EOS in Singapore. Singapore is the 3rd country where EOS has established subsidiaries, after the US and Germany.

The Singapore subsidiary has three key objectives:

1. Serve as a marketing and customer liaison office for the ASEAN region, where EOS has current and potential customers;

2. Coordinate an expanding EOS supplier network in the region, enhancing EOS' ability to respond to production volume fluctuations through a coordinated supplier network; and

3. Establish depot spare parts and repair facilities in Singapore, leveraging excellent regional transport links to enhance EOS product support.

EOS Defence Systems Pte Limited is led by Mr Henry Heng, an aerospace industry specialist with over 20 years of industry experience in military systems. This subsidiary is already operational.

Executive Appointment

EOS has appointed Mark Bornholt AM to a senior executive position in its weapon system business to support expanding foreign customer requirements in the face of challenging local conditions in Australia.

Mr Bornholt will oversee EOS marketing, which will be re-organised with particular emphasis on closer coordination with EOS internal programs for expansion and improvement of its remote weapon systems family.

Mr Bornholt is a recently retired Australian Army Brigadier. His extensive military experience and relationship with key customers will facilitate the efficient allocation of EOS marketing and development resources.

Economic Conditions and Capacity

During 2011 EOS Australian operations are contending with an escalating exchange rate and a tight labour market, especially for skilled staff. Consequently EOS will expand its Australian operations at a slower rate than the expected growth in demand for remote weapon systems.

Expansion of Australian operations going forward will be focused on activities currently achieving the highest yield and with competitive advantages resistant to further exchange rate rises.

The EOS production facility in Tucson [USA] was substantially expanded and upgraded in 2010, and it will increase output to meet demand.

CROWS Developments

The US Army has recently released draft tender documents for the CROWS program. This is the penultimate pre-tender phase, and signifies that the Army is on schedule to release the formal tender to qualified bidders late in 2011.

EOS has teamed with Northrop Grumman Corporation for this opportunity and the team is actively positioning to provide a highly competitive response to any request for tender from Army.

Summary

The US Army CROWS program is currently on schedule for contract award in early 2012 and extensive preparations for this competition are in hand.

Independent of CROWS, the EOS remote weapon systems business continues to grow, with a significant new customer added and existing customers forecasting new orders.

EOS is taking prudent steps to expand and consolidate is regional business, and laying foundations for further expansion with key management appointments.

EOS contingency planning for the current economic conditions is in effect with pre-positioned capacity in the US able to meet demand.

Background

EOS has two main business divisions - military and space - where it develops, manufactures and sells highly sophisticated technology with a wide range of applications.

EOS remote weapon systems (RWS) are already in wide use with advanced military organisations globally. In brief, EOS remote weapon systems enable a weapon mounted atop a vehicle to be fired rapidly and highly accurately by a gunner safely inside the vehicle.

In its space division, EOS is a producer of telescopes and technology to support space surveillance, space situation awareness and space ablation. In space surveillance, EOS laser tracking technology can track orbiting objects - as small as 2 cm in size.

EOS has around 140 employees, based in Canberra Australia, Tucson Arizona, Singapore and Deggendorf in Germany. The company also has manufacturing centres in Queanbeyan and in Tucson, Arizona.

Ben Greene
Ph: +61-414-365-658
http://www.eos-aus.com

Electro Optic Systems Holdings Limited (ASX:EOS): US Army Clarifies Common Remotely Operated Weapon Station Acquisition Strategy

newsroom@abnnewswire.net — Fri, 11 Mar 2011 10:13:00 GMT

With its partner Northrop Grumman Corporation (NYSE:NOC), Electro Optic Systems Holdings Limited (ASX:EOS) (PINK:EOPSF) is a potential bidder for the US Army's CROWS (Common Remotely Operated Weapon Station) program.

On 1 March 2011 the US Army published an update to its FedBizOpps notice regarding CROWS dated 16 February 2011, in the form of responses to all written questions arising from the original notice.

The Army requirements for its CROWS program include three general SOW (Statement of Work) areas:

1. Manufacturing of up to 18,000 CROWS;

2. Recapitalization (upgrade) of previously delivered XM153 CROWS; and

3. Engineering and logistics services, and spares parts for CROWS.

The FedBizOpps notice and the subsequent update together clarify key elements of the CROWS procurement:

A. CROWS Configuration

Army owns rights to all technical data for production of those parts of previously delivered XM153 CROWS that Army wishes to be propagated into future CROWS, and this technical data will be applied in three different ways by Army:

- Software. All CROWS, current and future, must operate the Army's CROWS software which will be provided to qualified bidders. No vendor software will be used.

- Physical elements from XM151 CROWS. Army will provide technical drawings and other material necessary for a new manufacturer to accurately re-produce sufficient parts of XM153 CROWS to ensure that new parts and sub-systems developed for future CROWS will be generally backwards compatible with [i.e. fit] older CROWS built up to 2012.

- New technology. Army intends to withhold some technical data for XM151 CROWS, allowing alternative designs and technology to be proposed for specific parts. However any new part or sub-system will be required to perform a similar function when used in the older XM151 CROWS.

EOS believes the Army approach aims to capture the best-available new technology while ensuring that current and future CROWS can operate from a substantially common pool of spare parts, training and support systems.

EOS and Northrop Grumman Corporation each have production technology and facilities suitable for efficiently re-producing Army-selected XM151 parts, and each have weapon system technology adaptable to improve the XM151 CROWS configuration.

B. Number of Awards

The Army update states that: "The Government's intent is to award multiple (two or more) Indefinite Delivery / Indefinite Quantity (ID/IQ) contracts, however the Government reserves the right to make one award."

Further: "...each IDIQ contract award will contain all three SOW areas. These three SOW areas will be identified in one encompassing SOW."

It is clear that Army intends to award at least two CROWS contracts spanning all CROWS requirements [SOW areas], and if CROWS follows precedent for major capital programs then those two suppliers will compete thereafter for work share on the basis of price, performance, technology, quality and responsiveness.

EOS considers that it has appropriate technology, production skills and support capabilities to contribute, through its teaming with Northrop Grumman Corporation, to any Army strategy aimed at this objective.

EOS and Northrop Grumman Corporation will jointly compete vigorously for one of the [two or more] awards that Army intend to make for CROWS.

C. CROWS Schedule

The Army update states that it expects:

- Draft tenders and industry consultation to be completed by 30 September 2011.

- The deadline for tender submission will be between 1 October 2011 and 30 September 2012.

- Contracts will be awarded between 1 October 2011 and 30 September 2013.

EOS and Northrop Grumman Corporation are positioned to respond to any of these potential deadlines.

Ben Greene
Chief Executive Officer
Electro Optic Systems Holdings Limited
Ph: +61-414-365-658
http://www.eos-aus.com

Electro Optic Systems Holdings Limited (ASX:EOS) Advises US Army Announces Common Remotely Operated Weapon Station Acquisition Strategy

newsroom@abnnewswire.net — Mon, 21 Feb 2011 09:45:29 GMT

On 19 May 2010 Electro Optic Systems Holdings Limited (ASX:EOS) announced that it had "executed an exclusive agreement with Northrop Grumman Corporation (NYSE:NOC) to jointly pursue the market for remote weapon systems in the United States through programs such as the US Army's Common Remotely Operated Weapon Station 3 [CROWS 3] program."

Since 19 May 2010 both EOS and Northrop Grumman Corporation have been aligning resources, capabilities, technology and production processes towards the CROWS program requirements, in anticipation of an US Army announcement of its strategy for acquisition.

The US Army has released its acquisition plan for its XM153 Common Remotely Operated Weapon Station (CROWS). In a FedBizOpps notice dated 16 February 2011 Army has specified its requirements for:

- Manufacturing of up to 18,000 CROWS;

- Recapitalization (upgrade) of previously delivered XM153 CROWS; and

- Engineering and logistics services, and spares parts for CROWS.

The Army notice states:

"The (US) Government has determined that a Full and Open Competition Indefinite Delivery/Indefinite Quantity (IDIQ) multiple award contract will be utilized for the CROWS requirement. The expected contract duration is five (5) years. Orders will be issued against the IDIQ contract(s) under three (3) separate and distinct areas of its Statement of Work (SOW). Each area will have a different contract type associated with it. The three (3) areas of the SOW and the three (3) planned contract types associated with each one for this requirement are as follows:

I. Fixed-Price, IDIQ: To support production of a maximum of 18,000 CROWS, field maintenance support, and spares. The production rate can vary, depending on requirements and funding availability from 0 to 300 CROWS per month with the ability to surge to 500 CROWS per month for limited durations, as required.

II. Fixed-Price Incentive, IDIQ: To support product improvements, integrations, and testing. Share line will be 50/50 with 120 percent ceiling as a point of departure.

III. Firm-Fixed-Price Level-of-Effort, IDIQ: To support training, overhaul, depot-level maintenance and recapitalization of CROWS; and for general engineering support, as required.

The CROWS will be built to a detail specification. The detail specification will consist of performance requirements and will specify technical drawings. The detail specification will specify the design requirements, how the requirements are to be achieved and/or how the items are to be fabricated or constructed. Some sub-assemblies will not include technical drawings and assembly procedures. Instead, data for those sub-assemblies will include directed source(s) or build-to-spec requirements or both. This approach will ensure a very high level of commonality between multiple CROWS producers and commonality/interchangeability with the existing CROWS fleet."

The announcement also indicated a draft solicitation (tender) during the April-June quarter of 2011, consistent with procurement activity completion within 2011.

Commenting on the recent Army notice, EOS' Chief Executive Officer, Ben Greene, said:

"By the time the new CROWS contracts are in production in 2012 there will be around 10,000 XM153 CROWS already in service. This notice signals an Army strategy to meet future production requirements for up to 18,000 units, provide long term maintenance and support, and accelerate the uptake of new technology: all in a process that will include the current XM153 CROWS. Army is clearly aiming for a "coherent fleet" of up to 28,000 CROWS, all with access to new technology and cost-effective support."

"EOS considers that it has appropriate technology, production skills and support capabilities to contribute, through its teaming with Northrop Grumman Corporation, to any Army strategy aimed at this objective. Our recently upgraded and expanded production and depot support facilities in Arizona, and technology upgrades we have developed for the current XM153 CROWS are two examples of ongoing preparation for this competition."

Ben Greene
Chief Executive Officer
Tel: +61-414-365-658
Electro Optic Systems Holdings Limited
http://www.eos-aus.com

Electro Optic Systems Holdings Limited (ASX:EOS) Launch Of American Depositary Receipt Program

newsroom@abnnewswire.net — Tue, 23 Nov 2010 10:05:44 GMT

Electro Optic Systems Holdings Limited (ASX:EOS) (PINK:EOPSF) today announces the launch of its American Depositary Receipt (ADR) program and quotation on the Over-The-Counter (OTC) market in the United States of America.

The primary benefit of establishing the program is to create a broader secondary market for EOS, particularly in the North America, thereby providing better access for American investors to deal in EOS securities and assist liquidity in EOS stock. The ADR's will be tradeable via licensed U.S. brokers in the ordinary course of trading.

EOS has appointed BNY Mellon as its authorised U.S. representative and Depositary Bank to establish and maintain the ADR facility. BNY Mellon is the leading depositary bank, managing substantially more sponsored Depositary Receipt programs than any other depositary bank in the world with Depositary Receipts issued for more than 2,100 programs and companies from 67 countries.

Particulars for the U.S. sponsored ADR program are as follows:

- Type of ADR Program: Level 1

- U.S. Exchange: OTC

- CUSIP Number: 28520B107

- ISIN Number: US28520B1070

- ADR Ticker Symbol: EOPSY

- ADR Effective Date: 22 November 2010

- Ratio (ADR:ORDINARY) 1:5

- Local Custodian: National Australia Bank Limited (ASX:NAB) (PINK:NABZY)

Ian Dennis
Director
Electro Optic Systems Holdings Limited
Telephone: +61-2-9233-3915
http://www.eos-aus.com

Electro Optic Systems Holdings Limited (ASX:EOS) Releases First Wirelessly Networked Weapon Station

newsroom@abnnewswire.net — Tue, 16 Nov 2010 11:04:46 GMT

Electro Optic Systems Holdings Limited (ASX:EOS) (PINK:EOPSF) has released the first remotely operated weapon system that can be entirely operated and controlled by means of wireless network communications.

Remotely controlled weapon systems have been in development for almost 20 years, and have been used in combat operations for approximately 5 years. The key objectives of these systems have always been the improvement of weapon effectiveness, and the removal of the gunner to a safer position remote from the weapon itself.

A key limitation until now has been the need to locate the weapon system operator relatively close to the deployed weapon, because the weapon controls were connected by cables. Wireless controls have not been possible because of several safety and security issues:

1. A wireless system could be taken over by opposing forces and used against friendly forces unless very secure communications were employed.

2. The absence of a human operator results in deficiencies in the overall situation awareness at the weapon location, giving rise to safety and security concerns.

3. The need for clear identification of friendly forces to prevent fratricide.

4. Unpredictable time delays in very remote control links require certain functions of the weapon application be implemented robotically but without allowing robot control of the weapon itself.

All of these issues have been overcome by EOS, in cooperation with EOS's partner on remote weapons systems, Northrop Grumman with a generic device architecture that can be rapidly adapted to specific military digital environments.

EOS has obtained patent coverage in the US and other countries, for its implementation of this next generation of remote weapon system. The patents cover rules-based weapon controls to allow reliable and safe weapon operation over limited bandwidth and stressed communication systems.

Commenting at the recent Army USA Annual Meeting and Exposition in Washington DC, EOS' Chief Executive Officer, Ben Greene, said:

"The new technology we have developed allows weapon systems to be deployed with no physical connection to an operator. This means that for the first time weapon operators can be located as much as 500 to 800 meters away from the weapon. By coupling to existing secure communications, this can be further extended almost indefinitely."

"This breakthrough has required parallel development of battlefield network integration, data security and encryption, and other technologies to allow a critical real-time application to be operated across great distances. EOS' partner, Northrop Grumman Corporation has contributed both robotic deployment technology as well as secure network communications technology for this effort."

"The new weapon systems are not only operated without wires, but are also networked as integral parts of modern battle management systems, providing network resource information to enable a distant operator to make reliable decisions on the use of lethal force."

"For example the battle management system may securely communicate directly to each remote weapon system the location of all friendly forces within range, in many cases marking individual locations to prevent engaging those friendly forces. The location of friendly forces is clearly not meant to be shared indiscriminately, so network and data security is paramount in the wireless links."

"Once this information has been reliably shared amongst multiple weapon systems, an optimised engagement sequence for non-friendly forces can be instantly computed and prepared for execution upon command. This can lead to significant increases in the efficiency of engagement."

"The new weapon system does not signify the introduction of robotic weapons. Every firing of every weapon is and must be controlled by a human operator. The efficiency of an operator is simply improved by removal of the stress associated with the weapon location, and by the enhanced data flow of data relating to the location of friendly and other forces."

The company expects wireless and networked weapon systems to comprise a large proportion of the future market for weapon systems globally.

For the complete EOS announcement including figures, please view the following link:

http://www.abnnewswire.net/media/en/docs/64191-ASX-EOS-613719.pdf

Ben Greene
Chief Executive Officer
Electro Optic Systems Holdings Limited
Ph: +61-414-365-658
http://www.eos-aus.com

Craig Smith
CEO: EOS Space Systems Pty Limited
Ph: +61-414-365-368

Electro Optic Systems (ASX:EOS) Welcomes A Closer US and Australia Space Partnership

newsroom@abnnewswire.net — Wed, 10 Nov 2010 10:37:02 GMT

Electro Optic Systems Holdings Limited (ASX:EOS) (PINK:EOPSF) welcomes the closer collaboration announced this week between Australia and the US in the area of space surveillance and space situation awareness, with specific focus on space debris tracking and mitigation.

The Australia-United States Ministerial Consultations [AUSMIN] for 2010 were held in Melbourne on 8 November, and were attended by US Secretary of State Hillary Clinton, US Secretary of Defence Robert Gates, Australian Foreign Minister Kevin Rudd and Australian Defence Minister Stephen Smith.

A joint communiqué issued after the meeting stated:

"Building upon a long history of defence space cooperation, Australia and the United States signed a Space Situational Awareness Partnership Statement of Principles, which should enable further close cooperation on space surveillance to the benefit of both countries."

"Australia and the United States shared a deep concern about the increasingly interdependent, congested, and contested nature of outer space and acknowledged that preventing behaviours that could result in mishaps, misperceptions or mistrust was a high priority."

The two governments also endorsed a Joint Statement on Space Security highlighting their shared views and resolve to cooperate with like-minded countries to ensure free and safe access to space.

Commenting after the AUSMIN, Defence Minister Stephen Smith said:

"We have made progress in two of the challenges of this century, newly emerging challenges both in cooperation in space surveillance and space situational awareness and also in the area of cyber attacks."

Under the partnership agreement the two countries plan joint activities that may include establishing ground-based radar and optical stations to track satellites and other orbital objects passing over the Asia-Pacific region. This will enable Australia to support the U.S. Space Surveillance Network in providing more accurate warning of potential collisions in space, according to AUSMIN fact sheets.

Space is becoming increasingly congested due to the debris from over 50 years of space activities.

Currently there are an estimated 500,000 pieces of space debris of 1 centimetre diameter or larger in orbit around the Earth. Even debris of 1 cm is capable of damaging or destroying satellites and space vehicles, and harming human spaceflight because of the high collision speeds involved, exceeding 6 km per second. The vast field of space debris generated in the past 50 years is now a real threat to the continued use of space by all countries.

Currently just over 16,000 objects are being tracked, ranging from large objects like the International Space Station and satellites, down to small pieces of debris of approximately 10 cm in diameter. New technology and sensors are required to monitor debris smaller than 10 cm, and finding and tracking 1 cm debris in space presents significant challenges, especially as the quantity of debris increases rapidly as size decreases.

EOS is a world leader in space tracking, and has developed and deployed space tracking systems capable of cost-effectively locating and accurately tracking space debris as small as 1 cm in size. This capability has been successfully demonstrated and tested under both US and Australian government-sponsored space programs.

Recently [19 July 2010] EOS announced that it had received Australian government grant funds of A$4.04 million to upgrade a space debris tracking site to automated operation by 2012. This upgrade is proceeding on schedule.

An effective space debris tracking capability would require a number of such tracking facilities and important initial sites for these facilities are in the US and Australia.

EOS already operates a space laser tracking facility in Western Australia, as well as in the ACT region.

EOS' Chief Executive Officer Dr Ben Greene said:

"Most advanced global economies are highly dependent on satellites in space for communication, navigation, entertainment, internet, resource management, global monitoring, weather forecasting and defence. These satellites represent a collective investment of more than A$600 billion.

"Space debris is a serious threat to this infrastructure and these applications, and EOS has been developing cost-effective debris solutions for more than a decade, based on its world-leading laser tracking capabilities.

"EOS expects to be fully operational with the world's first automated laser tracking site for space debris by 2012, and we look forward to supporting Australian government initiatives to address this global problem in collaboration with the US."

Ben Greene
Chief Executive Officer
Electro Optic Systems Holdings Limited
Ph: +61-414-365-658
www.eos-aus.com

John Palisi
Chief Finance Officer
Electro Optic Systems Holdings Limited
Ph: +61-403-252-685