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For immediate release: February 22, 2005

MDA Reports Fourth Quarter And Year End 2004 Results

Richmond, B.C. - MacDonald, Dettwiler and Associates Ltd. (TSX: MDA), a provider of essential information solutions, today released financial results for the fourth quarter and fiscal year ended December 31, 2004. Results from Operations

Q4-2004 Q4-2003 change Year-2004 Year-2003 change

($ thousands, except EPS)
Consolidated revenues 200,077 159,251 26% 751,386 626,476 20%
EBITDA 34,219 26,518 29% 118,708 98,768 20%
Net earnings 14,004 11,265 24% 52,495 42,223 24%
Diluted EPS 0.35 0.29 21% 1.33 1.09 22%
Backlog 902,586 755,635 19%

Results for the Fourth Quarter Consolidated revenues increased by 26% to $200.1 million. Information Products revenues increased by 23% to $109.5 million while Information Systems revenues increased by 29% to $90.6 million. Earnings before interest, income tax and amortization (EBITDA) improved by 29% to $34.2 million, compared to $26.5 million for the fourth quarter of 2003. Net earnings increased by 24% to $14.0 million, resulting in diluted net earnings per common share (EPS) of $0.35 (2003 - $0.29). Results for the Year Consolidated revenues increased by $124.9 million, or 20%, to $751.4 million for the year ended December 31, 2004, compared to $626.5 million for the prior year. Information Products revenues increased by 31% to $435.3 million while Information Systems revenues increased by 7% to $316.0 million. EBITDA increased by 20% to $118.7 million, compared to $98.8 million for the prior year. The Company achieved consistent EBITDA as a percentage of revenues of 16% while significantly increasing revenues, and despite unfavourable foreign exchange fluctuation and supplementary spending on long-term growth related business and product development activities. Net earnings increased by 24% to $52.5 million, or diluted EPS of $1.33, compared $42.2 million, or diluted EPS $1.09, for the prior year. Net earnings reflect higher levels of activity, corporate initiatives to improve efficiency in the delivery of products and services, and continuing efforts to contain overhead costs. The Company's business is geographically diversified and conducted in multiple currencies. Thus, a significant foreign exchange impact is the translation of financial results for the Company's self-sustaining foreign operations, which are translated into Canadian dollars using the average exchange rate for the year. In particular, the dollar in Canada has appreciated significantly relative to its counterpart in the United States over the past year. This extraordinary and rapid appreciation of the Canadian dollar relative to the U.S. dollar has had the effect of reducing the financial results for the Company's self-sustaining operations based in the United States, which in turn impacts the reported consolidated results. The following table presents, for comparative purposes, the effect to reported revenues and net earnings for 2004, assuming that 2003 exchange rates had been used to translate results for the Company's self-sustaining operations based in the United States.




($ thousands, except EPS
EPS is on diluted basis)
Revenues 751,386 626,476 20%
Foreign exchange impact 14,800 -

Normalized revenues 766,186 626,476 22%

Net earnings 52,495 1.33 42,223 1.09 24%
Foreign exchange impact (after tax) 2,400 0.06 -

Normalized net earnings 54,895 1.39 42,223 1.09 30%

The Company ended the year with backlog of $903 million, compared to $756 million at the end of the prior year. Capital expenditures for the year were $25.2 million, or 3.4% of consolidated revenues. This compares to $24.1 million, or 3.8% of consolidated revenues, for the prior year. As at December 31, 2004, outstanding debt was $381 million and unused credit facility was $300 million. The debt to cash EBITDA ratio, as calculated for bank covenant reporting purposes, was 2.0 times at year-end. The ratio is well below the bank covenant limit of 4.0 times. Operational Highlights Since the last report, MDA has continued to achieve steady progress in its strategy to become a leading information solutions provider in selected markets: MDA continued to improve its position as a key supplier of advanced solutions to NASA's manned space flight programs, by delivering the first of two inspection booms designed to enable in-orbit inspection of the Space Shuttle when it returns to flight. This accomplishment reinforces the Company's pre-eminent position, just before significant expenditures are expected to begin on a new space vehicle. MDA significantly strengthened its capability to participate in long-term space exploration programs with ongoing revenue stream potential. The Company booked and executed further work on the 2007 Mars information mission called Phoenix, as well as on several other early stage contracts for Canadian and European exploration missions. The Company was selected for the provision of a major information gathering solution for the U.S. Mars Science Lab mission in 2009. In addition, we have begun bidding on a range of new human and robotics NASA programs resulting from the long-term Space Exploration Vision recently announced by President Bush. MDA also made major strides developing its in-orbit servicing capability. One of our first advanced in-orbit servicing solutions is complete and on target for launch as part of a military mission in the first half of 2005, and another is in testing mode. Partly on the strength of these accomplishments, the Company received a contract to build the rendezvous/docking solution for the mission to de-orbit the Hubble Space Telescope. The Company was also awarded a contract to start work on a much broader Hubble rescue mission and work is progressing on schedule for the first design review in March. As well, in the area of essential information solutions based on small satellite missions, MDA continued to make progress. The Hyperspectral mission, which is targeted to service the agriculture, geology and forestry information markets, received further funding and progressed to the risk mitigation and design phase. The Company was selected to perform design work on a potential commercial Hyperspectral mission targeted at the same information markets as well as military applications. In addition, the Company was awarded a contract from Canada's Department of National Defence (DND) for the design of a Canadian Space Surveillance System in support of DND's "Surveillance of Space" Mission (also known as SAPPHIRE). This mission will monitor man-made objects and space debris in Earth orbits. The data will be collected in a space catalogue, maintained by NORAD, to provide space situational awareness. The design phase will last nine months. Should the proposed design be accepted, the program would proceed to full implementation. In the Defence market MDA signed its second agreement to provide information solutions that will allow image products to be distributed to commercial, defence and intelligence customers primarily in the U.S. In the U.S. property insurance market, MDA continued to enhance its leadership position. The Company is expanding its advanced underwriting solutions by increasingly automating aspects of the underwriting decision process and by adding more analytic capability. The Company is also extending its portfolio of services with web-based solutions that facilitate workflow and information flow. These developments are continuing the Company's transition to a full solution provider. In the claims area, a major push continues to increase market share. Sales in the second half of the year were up significantly. In the U.K. property information market the Company pushed forward on several fronts while the market continued cooling down. Customer acquisition was solid, not just by our Channel but also by other Channels, and as a result the NLIS share of the overall market kept climbing. New product introduction was strong and we brought our first major commercial property customer on line. From introducing new searches to new services, MDA's Channel continued its quest to be a one-stop information solution for the conveyancing process. In addition, the modernization process continued, with over 84% of search transactions being electronic, compared to 80% at last report. Since the end of the quarter, NLIS searches have rebounded to approximately 6,000 per week, the same average level as experienced during the latter half of 2004 (before the seasonal slowdown). Increased market penetration continues to offset the market slow down. Last but not least, a major event occurred in the U.K. with the passing into law of the Home Information Pack (HIP) legislation. Starting in 2007 (and preceded by a regional dry run in 2006) a HIP will be required for every home listing in England and Wales. A HIP will include a variety of information elements, including searches and a Home Condition Report. MDA is working diligently to improve its current positioning and to participate in the new product opportunities opened up by the HIP legislation. Since last report, the Company produced and demonstrated a data collection prototype, entered serious discussions with a number of prospective clients and associations, and kicked off work on a HIP supply infrastructure with the aim of being ready for the 2006 pilot phase. Altogether, the U.K. continues to present very attractive opportunities for long-term organic growth.

About MacDonald, Dettwiler and Associates Ltd. (MDA)

MDA (TSX: MDA) provides businesses and governments around the world with essential information solutions used for decision making. Operating from offices across Canada, the U.S. and the U.K., MDA is active in data collection, information extraction, and information distribution.

This report 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. MDA assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein do not materialize.

MDA's Fourth Quarter 2004 unaudited Consolidated Financials are available at:

Investor/Analyst Conference Call Today

MDA President and CEO Daniel Friedmann and Executive Vice President and CFO Anil Wirasekara will be available on a Conference Call today, February 22, 2005 at 1:30PM Pacific (4:30PM Eastern) to explain the financial results of the Company and to answer questions.

To participate, dial 1-800-387-6216 in Canada or the United States. In Toronto, dial 416-405-9328.

The Conference Call will also be Webcast live at:

For more information, please contact:

Wendy Keyzer
MDA External Relations
Telephone: 604-231-2743

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