Result of AGM

Monday, 30 December 2013

The Company announces that at its Annual General Meeting held earlier today, all resolutions proposed were duly passed.

View complete announcement on London Stock Exchange Website


Notice of AGM

Monday, 25 November 2013

SimiGon today announces that the Annual General Meeting of the Company is to be held at 9:00 a.m. Eastern Standard Time (2:00 p.m. GMT) on Monday 30 December 2013 at 7001 University Blvd. Winter Park, FL 32792, USA.

A shareholder, who would like to attend the meeting in person or join via conference call using the dial-in details below, should follow the instructions as specified in the Notice of Annual General Meeting.

International dial-in number: +1 712 432 1620

Access code: 888780#

The Notice of AGM has today been posted to shareholders and an electronic copy of the Notice of Annual General Meeting is available at the Company's website.

View complete announcement on London Stock Exchange Website

Holding in Company

Wednesday, 16 October 2013

SimiGon was notified on 14 October 2013, that on that day, Mr. Guy Poran sold 1,000,000 ordinary shares of 0.01 NIS each ("Ordinary Shares") of the Company. Subsequent to this transaction Mr. Poran is now interested in 2,273,444 Ordinary Shares of SimiGon representing 4.8% of the total voting rights of the Company.

View complete announcement on London Stock Exchange Website


Issue of Equity

Wednesday, 09 October 2013

SimiGon announces that, pursuant to resolutions passed at the Company's annual general meeting on 20 December 2012 and as the final installment of an initiative undertaken in October 2009 to reduce cash expenses, a total of 119,727 Ordinary Shares have been issued to the Company's Non-Executive Directors in return for a one year salary reduction:

Director

Issue of Ordinary Shares

Consequent interest in Ordinary Shares

 

(# of Ordinary Shares)

% of Enlarged Share Capital

Alistair Rae

47,727

202,249

0.43%

Nevat Simon

24,000

72,000

0.15%

Vered Shany

24,000

72,000

0.15%

Eitan Cohen

24,000

72,000

0.15%

Total

119,727

418,249

0.88%

Accordingly, application has been made for these 119,727 Ordinary Shares to be admitted to trading on the AIM market of the London Stock Exchange ("Admission"). The new Ordinary Shares will rank pari passu with the Company's existing Ordinary Shares and Admission is expected to become effective on 15 October 2013. The Company will have 47,292,706 Ordinary Shares in issue following Admission.

View complete announcement on London Stock Exchange Website


Interim Results for the six months ended 30 June 2013

Monday, 16 September 2013

Continued strong growth in revenues and net profit

SimiGon Ltd, a global leader in providing simulation solutions, announces its interim results for the six months ended 30 June 2013.

Financial Highlights

Operational Highlights

Ami Vizer, Chief Executive Officer of SimiGon, stated: "We are delighted to report a further six months of excellent operational progress, continued revenue growth and increased profits. We continue to execute on our long term strategy and achieve our targets evidenced by the successful transition to become a major prime contractor, enhancing SimiGon's reputation as a market leader and company of choice for the world's largest simulation training programmes.

"Looking ahead, we have excellent revenue visibility, a strong order book in place and an encouraging pipeline of business leads, which leads us to expect that revenues for the full year will be slightly ahead of market expectations.

"We are delighted with the ongoing success of SimiGon and are confident that this will continue in the second half of 2013 and beyond."

Enquiries:

SimiGon Ltd

Ami Vizer, Chief Executive Officer

Efi Manea, Chief Financial Officer

www.simigon.com

Tel: +1 (407) 737 7722

finnCap (NOMAD & Broker)

Stuart Andrews / Henrik Persson

Tel: +44 (0) 20 7220 0500

Luther Pendragon (Media & Investor Relations)

Harry Chathli / Alexis Gore / Oliver Hibberd

Tel: + 44 (0) 20 7618 9100

Overview

SimiGon is pleased to report strong revenue growth and increased profitability, in the first half of 2013, for the fifth consecutive period/half year. Revenues increased by 20% to $4.16 million (2012: $3.47 million) with a $0.22 million profit, up from $0.18 million in H1 2012.

The positive momentum taken into the first half of 2013 reflects the Company's successful transition to become prime contractor. SimiGon has now proven its ability to deliver training systems as a prime contractor, further enhancing its reputation in the industry and cementing its leading position as the preferred supplier of training and simulation technologies for the world's largest military flight training programmes.

The role of prime contractor enables SimiGon to target and win significantly larger and more lucrative contracts than was previously possible. It also gives the Company a direct relationship with the customer, a greater share of revenues and profit, and greater potential for further deals with the same customer.

As stated previously moving up in the supply chain and becoming a prime contractor involves an increase in hardware sales alongside SimiGon's software solutions. The Company's continued successful transition to becoming an established prime contractor led to an increase in selling third-party hardware along with its software technology solutions, which as a result, impacted margins in the first half (65% compared with 70% last year). The Company expects margins to increase in the second half following the successful deployment of the hardware systems.

The sale of hardware along with our software technology solutions enables SimiGon to provide a total and comprehensive solution to its customers as was a stated target for the Company.

Operational Review

In the first half of 2013, SimiGon has continued to secure new contracts while expanding and diversifying its customer base.

Significant contract win in the period

In June, SimiGon announced that it has been selected as a prime contractor to deliver a SIMbox based training solution, in a contract worth $6.7 million. SimiGon was awarded this contract despite competition from major competitors, a significant endorsement of the Company's market leading training solutions. Delivery of this contract has already begun and will initially be delivered over an 18 month period with revenues from the deal expected to begin in the second half of 2013. Subsequent phases of the programme have yet to be awarded and SimiGon is confident of being considered when this takes place.

Successful delivery of contracts as prime contractor

In August 2012 SimiGon announced that it had signed a substantial contract to provide a South American country's armed forces with its SIMbox training and simulation technology platform. This contract was the first time a country's armed forces had chosen SIMbox as the training system to be deployed across its entire armed services. SimiGon is successfully delivering this contract on time and on budget, further validating SimiGon's ability as a prime contractor.

SimiGon has also exhibited the capability to fulfill the continued needs of the U.S. Air Force AETC with the successful delivery, as prime contractor, of its SIMbox based T-6A training systems following a contract signed in September 2011. The SIMbox MTD simulators are used to train undergraduate, RPA students for Pilot Instrument Qualification training. The capability displayed during the successful delivery of this specific contract meant SimiGon were considered and later selected for a further contract from AETC, which was agreed in April this year. The value of the contract is US$405,000. SimiGon's success with this contract enhances the Company's market leading offering and positions it well for similar opportunities in a large and fast growing global market.

The Company is now in its second year of a five-year agreement with Check-6 Inc., a leading provider of training solutions to the energy and mining industries. This agreement, the Company's first major contract outside the aerospace and defence industry, saw SimiGon deliver its systems ahead of schedule and exceed expectations of the client. The successful implementation of SimiGon's systems will enhance the potential to expand the agreement with Check 6 further in the oil and gas industry.

Update on long term contracts

SimiGon has a number of long term contracts and partnerships that are all progressing well as sales continue to steadily increase.

During the first half of year 2013, SimiGon expanded its relationship with a major existing European customer with contracts worth value of US$0.6 million expected to be delivered during 2013 and 2014. The new contracts increase the integration of SimiGon's SIMbox technology at the development labs for this customer's Academic Training Center and also include licenses for a new clients' ATC. This is the fourth client that will use SimiGon's technology through its Strategic European customer. The companies have been working together since 2009 and this contract is a further expansion of an ongoing long term relationship.

Lockheed Martin is one of SimiGon's longest serving clients and the Company has been supporting Lockheed Martin's F-35 Lightning II JSF training program for over six years. As the JSF program progresses and enters its regular production and delivery phase SimiGon has continued to see an increase in demand. The JSF programme was a significant contributor to revenue in 2012 and sales have steadily grown in the first half of this year and are expected to continue for the remainder of 2013 and throughout 2014.

SimiGon continues to successfully meet all its project milestones for the UKMFTS. The three year partnership validates SimiGon's product capabilities allowing the company to showcase its product capabilities and increase probability of future sales.

SimiGon is pleased to report that all of its long term projects are progressing well with many existing clients expected to purchase further licenses over the course of 2013 and 2014. SimiGon now provides training and skill development required for survival by fighter pilots and astronauts, to oil and gas workers, preserving lives and protecting profits across the globe.

Financial Review

Revenues for the six months ended 30 June 2013 were $4.16 million as compared to $3.47 million for the six months ended 30 June 2012, reflecting an increase of 20%. Gross profit for the six months ended 30 June 2013 was $2.70 million, as compared to $2.43 million for the six months ended 30 June 2012. Accordingly, gross margins were 65% (H1 2012: 70%), the decrease reflecting that the Company has become active as a prime contractor (that is, the sales mix including the reselling of third-party hardware and programs) on certain contracts, and it is expected that the gross margins will increase in H2 2013 compared with the first half.

Net profit for the six months ended 30 June 2013 improved 24% to $0.22 million (H1 2012: Net profit of $0.18 million).

Total operating expenses for the six months ended 30 June 2013 increased to $2.43 million (H1 2012: $2.27 million). Research and development expenditure increased mainly due the investment made in new employees to help meet growing demand and support the Company's growth. Marketing expenses for the six months ended 30 June 2013 increased to $0.85 million as compared to $0.69 million for the six months ended 30 June 2012 and general and administration expenses the six months ended 30 June 2013 decreased to $0.45 million as compared to $0.50 million the six months ended 30 June 2012.

Operating income for the six months ended 30 June 2013 amounted to $0.27 million, significantly improving upon performance for the six months ended 30 June 2012.

Net financial expenses of $0.05 for the six months ended 30 June 2013 as compared to financial income of $0.01 million for the six months ended 30 June 2012 mainly due to the currency exchange rate movements.

Increase in the Company's net basic and diluted earnings per share for the six months ended 30 June 2013 of $0.005 as compared to $0.004 basic and diluted earnings per share for the six months ended 30 June 2012.

The Company's cash and equivalent balances, including restricted cash recorded, to insure future project performance, increased by 19% to a total of $8.45 million as at 30 June 2013 as compared to $7.11 million as at 31 December 2012 and to $6.98 million as at 30 June 2012: with no outstanding bank debt.

Outlook

SimiGon is pleased to report that the momentum gained from the strong results of the first half has continued into the second half of the year. As a result the Company now expects to report revenues for the full year slightly ahead of market expectations, demonstrating clear growth on previous years. SimiGon expects profits for the year to remain in line with market expectations reflecting the Company's expanded role as a prime contractor.

View complete announcement on London Stock Exchange Website


Notice of Results

Monday, 19 August 2013

SimiGon, a global leader in providing simulation solutions, will announce the Company's interim results for the six months ended 30 June 2013 on Monday, 16 September 2013.

View complete announcement on London Stock Exchange Website


Exercise of Options

Monday, 5 August 2013

The Company announces that application has been made for 19,800 new ordinary shares of 0.01 NIS each in the Company ("Ordinary Shares") to be admitted to trading on AIM ("Admission"). The new Ordinary Shares are being issued pursuant to the exercise of options by a former employee. The new Ordinary Shares will rank pari passu with the Company's existing Ordinary Shares and Admission is expected to become effective on 9 August 2013.

Following this issue of new Ordinary Shares, the Company will have 47,172,979 Ordinary Shares in issue. The Company holds no Ordinary Shares in treasury. Accordingly, the total number of voting rights in the Company is 47,172,979.

View complete announcement on London Stock Exchange Website


Director Dealing

Thursday, 27 June 2013

SimiGon Ltd ("SimiGon" or "the Company"), a global leader in providing simulation solutions, announces that on 26 June 2013, Mr Alistair Rae, Non-Executive Chairman of the Company, acquired a total of 36,250 ordinary shares of 0.01 NIS each in the Company ("Ordinary Shares") at a price of 28 pence per share.

Mr Rae is now the beneficial owner of 154,522 Ordinary Shares, representing 0.32 per cent. of the total issued share capital of the Company.

View complete announcement on London Stock Exchange Website


SimiGon Selected as Prime Contractor for a $6.7m Contract

Wednesday, 26 June 2013

Contract improves SimiGon's position as a major prime contractor in the aviation training market

SimiGon (LSE: SIM), a global leader in providing simulation training solutions, is pleased to announce that it has been selected as a prime contractor to deliver a SIMbox based training solution. The Company has begun to deliver upon this contract which will initially be delivered over an 18 month period. The contract is valued at $6.7m and provides the Company with significant comfort on the achievement of its expectations for the year ended 31 December 2013.

SimiGon President & CEO, Ami Vizer, said: "Over the past three years we have strategically moved up the supply chain and are pleased to have been selected as the prime contractor in the face of stiff competition from large major competitors. We are also delighted to be working with a visionary customer who sees the value of enabling technologies and improved processes for advanced operational training of aircrews. We look forward to working closely with them to deliver a successful training framework - on time, on budget - which will put us in a good position to be selected for subsequent phases of the programme."

View complete announcement on London Stock Exchange Website


Annual Report and Accounts

Wednesday, 19 June 2013

SimiGon today announces that the Annual Report & Accounts for the year ended 31 December 2012 has been posted to shareholders. An electronic copy is available here:
2012 Annual Report

View complete announcement on London Stock Exchange Website


Preliminary Results for the year ended 31 December 2012

Thursday, 22 April 2013

SimiGon, a global leader in providing simulation solutions, announces its preliminary results for the year ended 31 December 2012.

Financial Highlights

Operational Highlights

New significant contracts:

Significant first time revenues from contracts awarded in the previous year:

Longer term contracts:

Post period-end events:

Ami Vizer, Chief Executive Officer of SimiGon, stated: "We are delighted to announce another year of revenue growth and increased profits as we continue to execute our long term strategic plan and deliver on the targets that we set ourselves. This growth is as a result of increasing revenue from existing agreements, the ramping-up of long-term contracts, as well as the number of new contracts won this year.

"Our move to become a prime contractor has further enhanced SimiGon's reputation in the market. We continue to leverage our leading position in the market to build new partnerships, expand our customer base, and target larger contracts.

"Looking ahead, we have entered 2013 with a stronger order book than at the same time last year as there is continued demand for our solutions fromorganisationslooking to deliver effective trainingprogrammesand save on costs at the same time. As a result, we look forward to the future with confidence."

Enquiries:

SimiGon Ltd
Ami Vizer, Chief Executive Officer
Efi Manea, Chief Financial Officer
www.simigon.com
 
 
Tel: +1 (407) 737 7722
finnCap (NOMAD & Broker)
Stuart Andrews / Henrik Persson
 

 Tel: +44 (0) 207 220 0500
Luther Pendragon  (Public Relations)
Harry Chathli / Alexis Gore
 
Tel: + 44 (0) 207 618 9100

Overview

SimiGon is pleased to report strong revenue and profit growth in 2012. Revenues increased 24% to $6.81 million (2011: $5.48 million), resulting in a $0.69 million profit (2011: $0.35 million).

The positive results in 2012 and the continued growth further validates the managements strategic decision to align itself with some of the largest global simulation and training projects in the world, including four of the world's largest military flight training programmes. This strategy and the excellent foundations now in place continue to bear fruit for the Company as it establishes its long term growth prospects.

Moving up in the supply chain and becoming a prime contractor, involves an increase in hardware sales alongside SimiGon's software which affected its margins (lower at 80% compared with 85% last year), but the Company continues to believe these remain higher than the sector average. The sale of third-party hardware along with our software technology solutions enables SimiGon to provide a total and comprehensive solution to its customers and was a stated target for the Company.  Being prime contractor gives the Company a direct relationship with the customer, further secures us with increased visibility of long term revenues and opens up new and potentially significantly larger opportunities with customers. 

Operational Review

With a strong foundation firmly established, SimiGon targeted three key areas to help continue to drive growth. These were: to become a prime contractor; to expand military training beyond air forces, into land and sea simulation environments; and to move into the non-military training such as the oil and gas industry. SimiGon has met all of these targets and continues to deliver on its deliberate long term strategy to push the company forward.

Major contracts

The strong operational progress seen in the first half of 2012 continued in the second half as the Company achieved several significant contract wins. 

In a milestone agreement signed in August 2012, SimiGon secured a substantial contract to provide a South American country's armed forces with its SIMbox training and simulation technology platform. Significantly, this contract marks the first time a country's entire armed forces has chosen SIMbox as the training system to be deployed across air, sea and land components, which is a strong endorsement of SimiGon's solutions. This initial contract contributed significant revenues in 2012 and is expected to continue to do so in 2013.

SIMbox will be the baseline training technology used by its local partner, a newly formed government-owned company dedicated to the development of training and simulation systems. SIMbox-based training solutions will be deployed by the armed forces in training centres as well as for operational training and distributed joint forces training exercises. In addition to this contract, SimiGon's local partner will be required to purchase SIMbox Runtime licenses for the delivery of content to trainees adding an additional revenue stream.

In July and December, SimiGon signed a second and third contract with one of its major existing European customers. The deal expands and enhances SimiGon's relationship with the customer.

The second contract is for the development of an initial aircraft training program within its SIMbox simulation environment. The Simulation Based Training (SBT) systems will be installed at the end user site and will be the backbone of its new Academic Training Center (ATC).  The third contract is for licenses of SimiGon's SIMbox technology at the development labs of this customer's ATC. The combined values of the three contracts with this customer currently total US$2.77 million. Further maintenance and support service agreements are expected to follow and hence the Company is confident that this figure will continue to increase and contribute towards future revenues.

New markets

In May 2012, SimiGon moved into another new market within the defence sector when it signed an agreement with TAISR, to support the Joint Close Air Support and manned/unmanned Intelligence, Surveillance and Reconnaissance community.

This agreement demonstrates that SimiGon is the partner of choice for simulated training in thedefence sector and expands the Company's reach into the ISR market, a new, fast growing and substantial sector, estimated at $9 billion in 2012 at the Performance Audit of USA Department of Defense Intelligence, Surveillance, and Reconnaissance. JCAS and ISR technology seeks to improve mission success rates and the survival potential of those who operate in extremely hostile environments.

Revenue from this initial contract was realised in 2012. SimiGon expects that this initial contract will contribute to improved revenue visibility, underpinning the company's growth expectations.

2012 saw the first full year of revenue contribution from Check-6, a company with worldwide operations and clients including industry leaders such as Chevron, Diamond Offshore and BP. SimiGon's training solutions have adapted to the oil and gas market and are performing well. The Company believes there is scope for further expansion not only with Check-6 but throughout the oil and gas sector.

A Visiongain industry report has calculated that the oil & gas virtual reality training and simulation market was worth $2.24 billion in 2011. This has strong growth potential over the next ten years from a combination of increasing demand, improving technologies, and increasing safety concerns helping simulation training technologies become more widespread.

Long-term contracts

SimiGon achieved a significant milestone when, in late 2011, it was selected as prime contractor for AETC for the delivery of SIMbox based T-6A Modular Training Devices. 2012 saw the first year of revenues from this contract as SimiGon successfully delivered part of SIMbox based T-6A Modular Training Devices to the AETC. This contract remains on course and additional units are due to be delivered in 2013.

In addition, as announced last week, SimiGon secured a further contract from AETC to support and maintain all of the T-6A Modular Training Devices used in the training of all RPA students.

SimiGon's entry into the fast growing RPA market and the successful deliverables in 2012, as prime contractor, of SimiGon's T-6A Modular Training Devices demonstrates how SIMbox can be adapted to provide companies and agencies with the ability to quickly build simulation based training in a variety of fields. This will help to further enhance SimiGon's market leading offering and positions the Company for similar opportunities globally.

The Company entered the fifth year of supporting Lockheed Martin's F-35 Lightning II Joint Strike Fighter training program and the fourth year for the UK Military Flying Training System. SimiGon continues to deliver on all its milestones for these projects which continue to progress and ramp up as the project develops.

SimiGon continue its great work on providing successful training solutions solution for Unmanned Aerial Vehicle training program for a leading provider in the small tactical unmanned aircraft systems.

The market opportunity

SimiGon believes the market in which it operates to be very attractive, and accordingly has positioned itself well to take advantage of opportunities as and when they arise. With operational environments such as aircraft cockpits, air traffic control systems, UAVs and other weapons systems becoming increasingly complex, expensive and dangerous to train on, simulation software is a more cost effective and efficient alternative to real live equipment training.

According to a report from Global Industry Analysts the greater Modelling & Simulation market is valued at more than $20 billion annually and the projection for the global eLearning market is $107.3 billion by the year 2015.

The biggest driver of the training and simulation market growth is the defence industry. Despite the US defence budget cuts, the US Department of Defence remains the undisputed leader in seeking training and simulation solutions for military preparedness and readiness for symmetric and asymmetric warfare.

SimiGon has seen a continuing increase in the industry trend towards usage of simulation based training as the US, and other governments, seek more ways to reduce costs while meeting the increasing pressure to develop innovative training solutions to keep military personnel trained to the exacting standards required. 

In the military pilot training market alone, Forecast International projects 1,600 new fixed wing military training aircraft over the next ten years and the market for fighter aircraft will be worth nearly $194.5 billion as approximately 3,150 fighters will be manufactured.

SimiGon is well positioned with its industry leading technology, and well established position, to take advantage of this global opportunity. Its solutions are not only cost efficient but also deliver better pass rates than conventional means giving customers the best possible training at less cost.

Financial Performance 

Revenue for the year ended 31 December 2012 was $6.81 million, compared to $5.48 million in 2011, reflecting increase of 24%. In terms of regional breakdown, 73% of SimiGon's revenues came from North America (2011: 71%), 25% from Europe and the Middle East (2011: 27%) and 2% from the Far East (2011: 2%).

Net profit for the fiscal year increased by 97% to $0.69 million (2011: profit of $0.35 million).

Total operating expenses for the year increased by 9% to $4.74 million (2011: $4.35 million). Research and development expenses increased to $2.16 million (2011: $1.68 million) reflecting the investment made in recruiting new employees an area that SimiGon believe is integral to its future development. Sales and marketing expenses decreased by 7% to $1.57 million mainly due share based compensation expenses (2011: $1.70 million). General and administration expenses increased to $1.02 million (2011: $0.98 million).

The operating profit therefore is $0.69 million (2011: $0.31 million) and the net profit is $0.69 million in 2012 compared to net profit of $0.35 million in 2011. This resulted in a net basic and diluted earnings per share of $0.02 (2011: Basic and diluted earnings per share of $0.01).

SimiGon generated positive cash flow from operations of $2.5 million in 2012 (2011: $2.3 million) resulting in the Company having cash, cash equivalents and deposits totaling $7.11 million as of 31 December 2012 (31 December 2011: $4.74 million). This was after the Company including fully repaying of it entire bank debt that was outstanding as at 31 December 2011, as stated in the interim results on 27 September 2012.

Outlook

The momentum from the good results in 2012 has continued into 2013 as sales to the Company's long-term partners and recent contract wins ramp up. In addition, the move to become a prime contractor has helped SimiGon target new opportunities and significantly larger scale contracts than in previous years.

Looking ahead, with excellent revenue visibility and a strong order book in place, the Board expects continuing year-on-year sales and profit growth in 2013 and looks forward to the future with ever increasing confidence.

View the complete announcement on London Stock Exchange Website


SimiGon win additional contract from US Air Force

Thursday, 18 April 2013

SimiGon (LSE: SIM), a global leader in modeling, simulation & training solutions, is pleased to announce that it has been awarded a further contract by the U.S. Air Force Air Education Training Command (AETC) to support and maintain all of the T-6A Modular Training Devices (MTD) used in the training of all Remote Piloted Aircraft (RPA) students.

The value of the contract is US$405,000, over a period of 18 months, and provides further long term revenue visibility to the Company and will help support its expectations for the future.

This contract is an extension of an ongoing relationship that began in September 2011, when SimiGon were selected as the prime contractor and successfully delivered its SIMbox based T-6A training systems. The SIMbox MTD simulators are used to train undergraduate, RPA students for Pilot Instrument Qualification training.

SimiGon's successful entry into the RPA market enhances its market leading offering and positions the Company for similar opportunities globally as the T-6A is also used as a basic trainer by the Canadian Forces, the Luftwaffe of Germany, the Israeli Air Force, and others.

SimiGon President & CEO, Ami Vizer, said: "We are excited to be awarded this contract which builds on the work we have delivered on time and on budget for the U.S. Air Force training since September 2011. Remote Pilot Aircraft training is a rapidly growing segment and this contract shows that SimiGon has exhibited the capability to fulfill the continued needs of this sector of the U.S. Air Force as well as other forces worldwide."

View the complete announcement on London Stock Exchange Website


Notice of Full Year 2012 Results

Friday, 12 April 2013

SimiGon, a global leader in providing simulation solutions, will be announcing the Company's full year results for the period ended 31 December 2012 on Monday, 22 April 2013.

View the complete announcement on London Stock Exchange Website


SimiGon Bids to become Prime Contractor for US Army CEVT by Joining Forces with URS Federal Services

Thursday, 21 february 2013

Having URS Federal Services as part of the SimiGon team enhances the Company's bid for contract totaling up to $30 million

SimiGon (LSE: SIM), a global leader in providing simulation training solutions, is pleased to announce that it has signed an agreement with URS Federal Services Inc. ("URS") a leading provider of military training, engineering, construction and technical services, to provide a complete simulation training solution (hardware, software and connectivity tools) as a prime contractor. It is expected that SimiGon, and URS, will submit a bid in 2013 to become a prime contractor for the U.S. Army Construction Equipment Virtual Trainers ("CEVT") programme valued at an estimated $30 million.

The integrated team will benefit from the wide experience within URS alongside SimiGon's advance technology. If selected, SimiGon will receive revenues for the provision of all of the simulation and training technologies for several hundred systems, while URS will provide the Integrated Digital Environment, Subject Matter Experts and other important services.

The CEVT programme provides cost-effective training in a virtual environment. This allows personnel with little or no experience in operating construction equipment to have the opportunity to learn in a safe environment. As the programme progresses, training will move from simple control location and functions, to complex tasks and tactics employed in operating the construction equipment.

URS has trained over 20,000 U.S. Army aviators and has recently been awarded another contract to provide the Rotary Wing Flight Training at the U.S. Army Aviation Center of Excellence ("USAACE") in Fort Rucker, Alabama.

Ami Vizer, Chief Executive Officer of SimiGon, said: "Our stated strategy is to move up the scale and be a prime contractor and successfully deliver large simulation training programs such as CEVT. Expanding the SimiGon offer by adding the expertise within URS will enhance our ability to do this. With our established position as the preferred supplier of simulation solutions for the world's largest military flight trainingprogrammes, alongside URS, a world renowned name and proven operator in the industry, we feel we can provide a unique all-around offer to the U.S. Army."

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