XCEL Power Wins Contract from BAE Systems

January 20, 2002 by Jeff Shepard

Microtel International Inc. (Rancho Cucamonga, CA) announced that its XCEL Power Systems Ltd. (Kent, England) subsidiary has won a contract from BAE Systems Ltd. (UK) to supply two power supply units fitted to each European Fighter Aircraft (EFA). The contract value is approximately $2,500,000 and is scheduled for delivery over a three-year period with production deliveries having commenced at the end of December 2001.

Richard Weller, general manager of XCEL Power Systems, stated, "This contract represents our first production shipments associated with the European Fighter Aircraft. Given the acceptance of this aircraft, longer-term orders in excess of $20,000,000 could be forthcoming, thus reinforcing our position in a key market. We are pleased that our involvement in the EFA development program has now resulted in a substantial production order. BAE Systems is a major customer of XCEL Power Systems and we look forward to a long and mutually beneficial involvement in this program."