FAA Contract for Tower Simulation System Support Update

• Adacel awarded 5-year, $59M contract to provide tower simulation system support and technical refresh
• Contract with FAA spans over 20 years of partnership
• Adacel remains the awardee after FAA re-evaluation of proposals

Adacel Technologies Limited, an industry leader in advanced Air Traffic Management (ATM) and Air Traffic Control (ATC) simulation and training solutions, has received an update on its Federal Aviation Administration (FAA) Contract for Tower Simulation System Support & Technical Refresh. In July 2024, the Office of Dispute Resolution for Acquisition (ODRA) recommended that the FAA allow a bidder to resubmit certain elements of its proposal, and that this new proposal be re-evaluated by the FAA against Adacel's original bid. In September 2024, the FAA has now rendered its decision, concluding that Adacel remains the awardee. As a consequence, Adacel will continue to deliver under the contract terms which began on 1 December 2023. Valued at USD$59 million over five years, this contract encompasses a comprehensive range of services connected with the existing installed network of Tower Simulation Systems, including the maintenance and support of the TSS hardware and a full-scale technical refresh for all major components within the TSS large and small systems and TSS Mobile Units. The Company is pleased with this decision by the FAA and confirms the significance of the Tower Simulation System (TSS) program between the two organizations which has spanned over 20 years.

The Company anticipates EBITDA of between $4 million and $5 million for FY2025.