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United States Navy exercises purchase option on VHF Locator Beacons and commits to large-scale simulation exercise

• Confirms initial contract value of US$400K with significant revenue upside
• MBO is the Sole Source provider of VHF Locator Beacon test articles to the US Navy
• Successful joint US Navy and RAN testing conducted at the Garden Island submarine escape training tower November 2010
• NAVSEA final field capability demonstration scheduled for June 2011 to test VHF locator beacon
• Underpins possible procurement – likely in second half of calendar 2011
• Additional revenue opportunities - technology to be made available to other NATO submarine fleets and surface vessels

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