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Nov 27, 2001
FLIR Systems Awarded New Contracts Valued in Excess of $25 Million; Provides Guidance for 2002 Financial Results; Announces Intention to Register $40.0 Million of Common Stock
FLIR Systems Awarded New Contracts Valued in Excess of $25 Million; Provides Guidance for 2002 Financial Results; Announces Intention to Register $40.0 Million of Common Stock

PORTLAND, Ore.--(BUSINESS WIRE)--Nov. 27, 2001--FLIR Systems, Inc. (Nasdaq:FLIR) announced today that it has been awarded new contracts valued at more than $25 million for delivery of its Star-Q™ and Star SAFIRE™ II airborne imaging systems, ThermoVision™ Sentry perimeter security system and MilCAM™ XP and MilCAM™ Recon hand-held reconnaissance and surveillance systems.

The first contract, valued at over $12.0 million, is from the UK Ministry of Defense to supply the Royal Air Force (RAF) with the Company's new Star-Q multisensor airborne imaging system. The systems will be used as part of an upgrade program for the RAF SeaKing Search and Rescue helicopter fleet. Deliveries will begin in late 2002 and continue through 2003.

The second contract, valued at over $4.0 million, is from the Royal Australian Air Force for the Company's Star SAFIRE II systems for use on its fleet of P-3C fixed-wing aircraft for a variety of missions including long range surveillance, coastal patrol and search and rescue. The Company is partnered with Hawker Pacific, BAE Systems of Holden Hill and Tenix Defence Australia in providing installation and maintenance over the life of the contract. Deliveries will begin immediately.

The Company has also received contracts valued at over $9.0 million for its ThermoVision Sentry, a ground-based perimeter security system, and its MilCAM XP and MilCAM Recon hand-held reconnaissance and surveillance thermal imaging systems. These systems will be used by a variety of government end-users for perimeter security, forward observation and reconnaissance. Under the terms of the contracts, the Company is not permitted to disclose the identity of the governmental end-users or the terms of the contracts.

"As demonstrated by these contract awards, we are experiencing increased worldwide demand for the full range of our thermal imaging products, particularly our airborne, ground-based perimeter security and hand-held imaging systems," commented Earl Lewis, President and CEO of FLIR.

Provides Revenue and Earnings Guidance for 2002

The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially.

"Based on FLIR's expected performance for the fourth quarter of 2001, we are currently estimating revenue for 2002 to be approximately $250 to $260 million and net earnings for the year to be approximately $2.00 to $2.15 per share," said Lewis.

Announces Intention to Register $40 million in Common Stock

The Company also announced its intention to file a registration statement with the Securities and Exchange Commission under its shelf registration process for $40 million of the Company's common stock. Proceeds from the ultimate sale of those shares will be used to reduce its bank debt and for other corporate purposes.

This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. The securities to be registered pursuant to the shelf registration may not be sold nor may offers to buy be accepted prior to the time the registration statement has become effective.

About FLIR Systems

FLIR Systems, Inc. is a world leader in the design, manufacture and marketing of thermal imaging and stabilized camera systems for a wide variety of thermography and imaging applications including condition monitoring, research and development, manufacturing process control, airborne observation and broadcast, search and rescue, drug interdiction, surveillance and reconnaissance, navigation safety, border and maritime patrol, environmental monitoring and ground-based security. Visit the Company's Web site at www.FLIR.com.

Forward-Looking Statements

The statements in this release by Earl R. Lewis and the statements in the 2002 Outlook above are forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Such statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including the following: changes in demand for the Company's products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, constraints on supplies of critical components, excess or shortage of production capacity, actual purchases under agreements, the amount and availability of government procurement funds and other risks discussed from time to time in the Company's Securities and Exchange Commission filings and reports. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.

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CONTACT: FLIR Systems, Inc.
Jim Fitzhenry, 503/684-3731
www.flir.com
or
Neil Berkman Associates (investor contact), 310/277-5162
info@BerkmanAssociates.com