First time SIMbox technology selected as the simulation training solutions platform of an entire country’s armed forces

SimiGon (LSE: SIM), a global leader in providing simulation training solutions, is pleased to announce that it has signed a substantial contract to provide a South American country’s armed forces with its SIMbox training and simulation technology platform. SIMbox will be the baseline training technology used by its local partner, a newly formed government-owned company dedicated to the development of training and simulation systems.

This initial contract marks the first time a country’s armed forces has chosen SIMbox as the training system to be deployed across its entire armed services. The contract is expected to commence immediately, with delivery of hardware and training on the SIMbox system in the coming months and completion in early 2013. Revenue will be apportioned in line with delivery milestones. The revenue contribution from the initial contract will contribute to improved revenue visibility for the year ended 31 December 2012 and extending into the next year.

Under the terms of the contract, SimiGon will initially deliver SIMbox development systems, a wide range of training courses and on-the-job training to local partners’ software developers and support their simulation development activities. Based on this, local partners’ developers will build their own SIMbox-based training and simulation content to support training of its armed forces, including the Cessna Caravan, Super Tucano, M1117 Armoured Security Vehicles and many others. SIMbox-based training solutions will be deployed by the armed forces in training centres as well as for operational training and distributed joint forces training exercises.

Furthermore, and additional to the above initial contract, SimiGon’s local partner will be required to purchase SIMbox Runtime licenses for the delivery of content to trainees. Revenue from the sale of such Runtime licenses is not included in this initial contract and is expected to generate significant levels of additional recurring revenues going forward.

SimiGon President & CEO, Ami Vizer, said: "This is a major win and a significant achievement for SimiGon as it is the first time that a nation has decided to base its entire armed forces simulation training infrastructure on SimiGon's SIMbox. For us to be appointed at the end of an extensive selection process is further proof that we have the most advanced and robust solution available today.

“We look forward to working closely with our latest strategic partner to support their efforts to develop advanced training solutions. We expect our cooperation with this partner will lead to many additional opportunities within this country and throughout Latin America."

View complete announcement on London Stock Exchange Website