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For immediate release: February 26, 2009

MDA reports fourth quarter and full year 2008 results

MDA ends fiscal year 2008 with solid results

Richmond, B.C. - MacDonald, Dettwiler and Associates Ltd. (TSX: MDA), a provider of essential information solutions, today reported financial results for the fourth quarter and year ended December 31, 2008.

Consolidated revenues for the fourth quarter of 2008 were $278 million compared to $294 million for the same period last year. In the financial services sector, the Company’s property insurance information business realized robust growth which partially offset lower volume of activity in the conveyancing and lending markets. The Company’s geospatial information business and its Information Systems group continued to perform well. These results collectively led to Information Products revenues of $174 million for the fourth quarter of 2008 compared to $203 million for the same period in 2007, and Information Systems revenues of $105 million for the fourth quarter of 2008 compared to $91 million for the same period a year ago.

Diluted adjusted EPS for the fourth quarter of 2008 was 52 cents compared to 72 cents for the same period last year. Reported on a GAAP basis, diluted EPS for the fourth quarter of 2008 was 22 cents compared to 70 cents for the same period a year ago. Adjusted net earnings exclude the impact of items affecting comparability, including costs relating to restructuring, stock-based compensation expense and fair value adjustments on equity forward contracts and interest rate swap contracts.

For the full year ended December 31, 2008, consolidated revenues were $1,168 million compared to $1,204 million for 2007. Information Products revenues were $768 million compared to $845 million for 2007. Information Systems revenues increased to $401 million from $359 million a year ago. Diluted adjusted EPS for 2008 was $2.28 compared to $2.47 for the prior year. Adjusted net earnings for the full year excluded the non-recurring costs related to the terminated divestiture of the Information Systems business, in addition to the impact of costs related to restructuring, stock-based compensation, forward contracts and other items affecting comparability. After accounting for all transactions, diluted EPS for 2008 was $1.19 compared to $2.18 for the prior year.

Results of Operations

Three months ended
December 31,
Twelve months ended
December 31,
2008
2007
2008
2007

($ thousands, except per common share amounts)

Consolidated revenues
$ 278,327
$ 294,143
$ 1,168,491
$ 1,204,239
Adjusted net earnings1
21,218
30,916
92,497
107,664
Adjusted net earnings per common share1:
Basic
0.53
0.75
2.30
2.61
Diluted
0.52
0.72
2.28
2.47

Net earnings
8,750
30,270
48,490
94,967
Net earnings per common share:
Basic
0.22
0.74
1.20
2.30
Diluted
0.22
0.70
1.19
2.18

Weighted average number of common shares outstanding:
(thousands)
Basic
40,363
41,011
40,284
41,307
Diluted
40,431
43,113
40,655
43,636
Average exchange rates:
1 US dollar to Canadian dollar
1.213
0.982
1.067
1.074
1 British pound to Canadian dollar
1.898
2.007
1.961
2.148

1 Adjusted net earnings and adjusted net earnings per common share are non-GAAP financial measures.


Reconciliation of net earnings to adjusted net earnings

Three months ended
December 31,
Twelve months ended
December 31,
2008
2007
2008
2007

($ thousands)

Net earnings
8,750
30,270
48,490
94,967

Items affecting comparability:
Costs related to terminated divestiture of
Information Systems business, net of taxes
-
-
4,552
-
Accelerated amortization of capital
assets related to restructuring, net of taxes
7,000
-
7,000
-
Other restructuring costs, net of taxes
1,948
-
2,854
-
Reversal of self-insurance provision following
launch of RADARSAT-2, net of taxes
-
(4,186)
-
(4,186)
Settlement of claim for unauthorized use of
Company data, net of taxes
-
(1,896)
-
(1,896)
Stock-based compensation expense (recovery),
net of taxes
(215)
1,064
(469)
11,869
Fair value loss (gain) on equity forward
contracts, net of taxes
(959)
5,452
25,376
6,703
Fair value loss on interest rate swap
contracts, net of taxes
4,694
212
4,694
207
Adjusted net earnings
21,218
30,916
92,497
107,664


MDA’s audited consolidated financial statements and management’s discussion and analysis for the year ended December 31, 2008 are available at:
http://www.mdacorporation.com/corporate/investor/financial-reports

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 information solutions, ranging from complex operational systems, to tailored information services, to electronic information products.

MDA employs more than 3,200 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.

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 26, 2009 at 2:30 p.m. Pacific (5:30 p.m. Eastern) to explain the financial results of the Company and to answer questions.

To participate, dial 1-877-323-2010 in Canada or the United States
In Toronto, dial 416-695-6320

The Conference Call will also be Webcast live and archived at:
http://www.mdacorporation.com/corporate/investor/events

Telephone replay will be available until March 5, 2009 at the following numbers:

Toll free, International, dial 1-800-408-3053
In Toronto, dial 416-695-5800
Pass Code 3277961

Related Websites:
www.mdacorporation.com

Forward-Looking Statements

This release and the associated earnings conference call and webcast contains certain forward-looking statements and information, which reflect the current view of MacDonald, Dettwiler and Associates Ltd. (“MDA”) with respect to future events and financial performance and are based on MDA's current expectations, estimates, projections and assumptions made in light of its experience and its perception of historical trends. 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. You are referred to the risk factors described in MDA's most recent annual Management's Discussion and Analysis, Annual Information Form and other documents on file with the Canadian securities regulatory authorities, available online at www.sedar.com or www.mdacorporation.com. The forward-looking statements and information contained in this release, and the associated earnings conference call and webcast represent MDA’s views only as of the date of this release, and the associated earnings conference call and webcast. MDA disclaims any intention or obligation to update or review any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by law, rule or regulation. You should not place undue reliance on forward-looking statements..

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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