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For immediate release: October 31, 2006

MDA Enters Strategic Alliance With Rocketplane Kistler

Richmond, B.C. - MacDonald, Dettwiler and Associates Ltd. (TSX: MDA), a provider of essential information solutions, announced today that it has signed a strategic long term Agreement with Rocketplane Kistler to participate in the initial and future phases of the Commercial Orbital Transportation Services (COTS) program. The Agreement is expected to evolve as financing, technical and customer milestones are being met.

COTS is a collaborative program between the National Aeronautics and Space Administration (NASA) and Industry to demonstrate the viability of alternative space transportation capabilities, in anticipation of procuring commercial space transportation services in future years when the current space shuttle fleet is going to be retired. Rocketplane Kistler is one of the two finalists selected recently by NASA to develop a COTS demonstration model.

MDA’s scope includes the “Last Mile Solution”, which supports rendezvous and docking of Rocketplane Kistler's orbital vehicle K1 with the International Space Station, as well as the development and sustenance of the un-pressurized cargo subsystems.

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.

About Rocketplane Kistler (RpK)

Rocketplane Kistler (RpK) brings together two industry-leading makers and future operators of the next-generation orbital and suborbital space transportation vehicles. RpK was formed when Kistler Aerospace Corporation and Rocketplane Limited, Inc. were brought under common ownership. RpK markets the services of the fully reusable, two stage Kistler K-1 orbital space transportation vehicle and the fully reusable, suborbital Rocketplane XP Spaceplane, both of which will be first to fly in their respective markets.

About Rocketplane Limited, Inc.

Rocketplane was formed in 2001 to develop and produce vehicles for the suborbital space tourism market. Over the last 5 years, Rocketplane developed and is currently building the first XP Spaceplane, a four-seat, fighter sized vehicle powered by two jet engines and a rocket engine.

About Kistler Aerospace Corporation

Kistler was formed in 1993 to design, develop and operate the first fully reusable orbital space transportation vehicles. Kistler has completed significant K-1 production milestones, including production of primary structure and engine testing. The K-1's design enables it to provide a variety of space transportation services, not only to LEO, but also to Medium Earth Orbit (MEO) and Geosynchronous Transfer Orbit (GTO).

Related Websites:
www.mdacorporation.com
www.rocketplanekistler.com
www.rocketplane.com
www.kistleraerospace.com

Forward-Looking Statements

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.



For more information, please contact:

Wendy Keyzer
MDA External Relations
Telephone: 604-231-2743
E-mail: wendy@mdacorporation.com


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