February 22, 2005 MIRABEL, Quebec -- The Honourable Jean-C. Lapierre, Minister of Transport and political lieutenant for Quebec, on behalf of the Honourable David L. Emerson, Minister of Industry, today announced the Government of Canada would participate in a partnership with the Government of Quebec and Bell Helicopter Textron Canada Limited (BHTCL) in a $725.6-million, multi-phase research and development initiative. In support of this project, the federal government is announcing today its intention to conclude an agreement with BHTCL for $115 million over several years. Treasury Board approval will be sought shortly for the implementation of this initiative. "This innovative initiative will provide the potential to develop capabilities in the Canadian aerospace industry that do not exist at present." said Minister Emerson. "This project holds promise for the aerospace and defence industry in terms of enhanced skills development, manufacturing efficiencies and economic growth." "The civil helicopter sector is a cornerstone of the aerospace industry and is important to the entire Canadian economy," said Minister Lapierre. "This initiative will provide an excellent opportunity to establish a renewed helicopter footprint in Quebec for the next generation." The Government of Canada is partnering with the Government of Quebec and BHTCL to develop the Modular Affordable Product Line, which will introduce new technology into the civil helicopter industry in Canada. This initiative represents a significant step forward in the capability and capacity of a new family of helicopters for BHTCL. The technological innovations derived from this initiative will have applications throughout the Canadian aerospace industry, and will encourage economic growth across BHTCL's supply chain, including approximately 100 small and medium-sized companies in Canada. The research and development project involves a five-phase approach to design, develop and produce the components required to field a new family of light civil helicopters. To achieve the intended performance improvements for speed, payload, direct operating cost, reliability and noise levels, BHTCL will develop new and innovative technological applications and enhancements not currently available in the industry. This will include, among other aspects, a new series of advanced composite cabin elements, a new electrical and avionics system, and a new drive train. This initiative is being made through Technology Partnerships Canada (TPC) - a key instrument for advancing research and development toward commercialization. Working in partnership with innovative companies across Canada, TPC shares in the cost of private sector technology projects in aerospace and defence, in environmental technologies, and in enabling technologies like information and communications technologies and biotech. - 30 - For further information: Stéphanie Leblanc Office of the Honourable David L. Emerson Minister of Industry (613) 995-9001 Media Relations Industry Canada (613) 943-2502 Irène Marcheterre Director of Communications Office of the Honourable Jean-C. Lapierre Minister of Transport (613) 991-0700 The news release and other documents are available on the Technology Partnerships Canada Web site at http://www.tpc-ptc.ic.gc.ca Backgrounder Government of Canada Support of Bell Helicopter Textron Canada Limited's Modular Affordable Product Line Project February 22, 2005 The Government of Canada has agreed to partner with the Government of Quebec and with Bell Helicopter Textron Canada Limited (BHTCL) in BHTCL's Modular Affordable Product Line (MAPL) project, which will introduce new technology into the civil light helicopter industry in Canada. In support of this project, the federal government is announcing today its intention to conclude an agreement with BHTCL for $115 million over several years. Treasury Board approval will be sought shortly for the implementation of this initiative. BHTCL and its parent will invest a minimum of $449 million in MAPL for four new light helicopters and a series of engineering/research and development commitments. It is expected that MAPL will sustain over 500 jobs over the next 15 years. MAPL also will provide an excellent opportunity to establish a renewed civil helicopter footprint in Quebec for the next generation. This project is an excellent example of what incentives can do when the private and public sectors work together. New helicopter assembly investments are coveted worldwide for the significant economic and technological spinoffs they generate. In terms of its ability to advance the government's agenda, the civil helicopter sector has the potential to contribute to Canada's economic growth and prosperity for the 21st century, and to promote sustainable development and environmental goals, including Canada's commitment to the Kyoto Accord, the hydrogen economy, skills development, innovation and commercialization. BHTCL is the largest manufacturer of civil helicopters in Canada, with approximately 1400 employees involved in engineering, design, manufacturing and assembly. An additional 1000 people are indirectly employed through BHTCL's network of approximately 100 supplier firms across Canada. BHTCL is the centre of excellence for commercial helicopters within the Bell Helicopter group, which is headquartered in Fort Worth, Texas. BHTCL facilities include its assembly plant at Mirabel, Quebec, a supply centre in Calgary, and an international support network through Bell Helicopter Canada International Inc.