MDA Begins Third Phase Of CP140 Radar Surveillance Solution For Canadian Defence

Richmond, B.C. - MacDonald, Dettwiler and Associates Ltd. (TSX: MDA), a provider of essential information solutions, announced today that it has been authorized to commence the third phase of a three-phase development and production contract with Canada's Department of National Defence (DND) to deliver a new airborne radar surveillance solution for Canada's fleet of CP140 Aurora patrol aircraft.

MDA is the prime contractor for the program, which was announced in January 2003 at a total value of approximately CAD $200 million. The first phase saw the completion of the high level design and the selection of a radar hardware supplier. The second phase saw the completion of detailed design and the initial development and laboratory tests of four prototype systems.

Phase three, valued at approximately CAD $78 million, will complete the ground and flight testing of the four prototype systems. Also included in this phase is the upgrade of the prototypes to production standards, and the manufacturing, testing and delivery of 16 production systems for installation on the CP140 Aurora during the Aurora Incremental Modernization Project mission computer and sensors aircraft modifications efforts. The prototype aircraft modifications are scheduled to commence in April 2007.

The CP140 Aurora patrol aircraft were acquired by Canada in 1980 and are used primarily for maritime surveillance. When the current Aurora upgrade program is completed, the radar surveillance solution on the Aurora will be able to detect, track, and image objects moving on land or sea.

About MDA

MDA provides advanced information solutions that capture and process vast amounts of data, produce essential information, and improve the decision making and operational performance of business and government organizations worldwide.

Focused on markets and customers with strong repeat business potential, MDA delivers a broad spectrum of earth and space based information solutions, ranging from complex operational systems, to tailored information services, to electronic information products.

MDA employs more than 3,000 people in locations across the United States, the United Kingdom, and Canada. The Company's common shares trade on the Toronto Stock Exchange under the symbol TSX:MDA.

Related Websites:
www.mdacorporation.com
www.forces.gc.ca/

Forward-Looking Statement

This release contains forward-looking statements and information, which reflect the current view of MacDonald, Dettwiler and Associates Ltd. with respect to future events and financial performance. Any such forward-looking statements are subject to risks and uncertainties and MDA's actual results of operations could differ materially from historical results or current expectations. Additional information on these and other potential factors that could affect MDA's financial results are detailed in documents filed from time to time with the applicable Canadian securities regulatory authorities.

The Toronto Stock Exchange has neither approved nor disapproved the form or content of this release.