CAMBRIDGE, ON – COM DEV International Ltd. announced its first quarter financial results for the three-month period ended January 31, 2009. All amounts are stated in Canadian dollars unless otherwise noted.

First Quarter Highlights

· Revenue was $56.5 million, an increase of 26% over the $44.9 million recorded in the first quarter of 2008.

· Gross margin was 26%, compared to 24% in Q1 2008.

· Net income was $4.4 million, or $0.06 per share, compared to $1.3 million or $0.02 per share for the prior year period.

· New orders won in the first quarter totaled $88 million, compared to $33 million a year earlier and $60 million in the fourth quarter of fiscal 2008.

· Backlog at January 31, 2009 was $189 million, compared to $158 million three months earlier.

“We got off to a very good start in 2009, recording the second highest revenue total in our history in what tends to be a seasonally slow quarter for us,” said John Keating, CEO of COM DEV. “High levels of new orders and a record backlog at quarter-end position us well for the rest of the year. The indicators we track continue to point to ongoing strength in the global space industry, despite challenges being seen in other sectors of the economy.”

Financial Review

COM DEV’s fiscal 2009 first quarter revenues of $56.5 million represented an increase of $11.6 million or 26% compared to the previous year. The revenue split between the three market segments was 59% commercial, 24% civil and 17% military, compared to a 64/23/13 split in the first quarter of 2008. Management continues to expect annual revenue growth of at least 10% in fiscal 2009.

COM DEV received new orders totaling $88 million during the quarter, of which 51% were commercial, 12% were civil, and 37% were military. Military orders of $33 million represented a record high for COM DEV in a single quarter. In Q1 2008 the Company booked $33 million of new orders, with a commercial/civil/military split of 48/48/4.

Order backlog at quarter-end reached a record high of $189 million, compared to a backlog of $158 million at the end of Q4 2008 and $133 million one year ago. Backlog was split between the Company’s commercial, civil and military sectors at a ratio of 44%, 35% and 21% respectively, compared to 45%, 42% and 12% three months earlier. The Company expects to convert approximately 77% of the total backlog into revenue during fiscal 2009.

Gross margin was $14.7 million in Q1 2009, representing 26% of revenues, compared to $10.9 million or 24% of revenues in Q1 2008. COM DEV made the decision this quarter to classify as SG&A, certain expenses that had previously been recorded as cost of revenue, in order to provide better visibility into total SG&A costs. Comparable figures from last year for both gross margin and SG&A have been adjusted upward by $0.7 million in order to conform to the current classification of costs.

Gross research and development spending in Q1 2009 was $3.8 million, representing a $1 million increase from one year earlier, but a $1.6 million decrease from Q4 2008 levels. Outside funding of $1.0 million was up 25% from Q1 2008, but down $1.9 million or 64% from Q4 2008, as program funding was completed for one of the Company’s R&D projects. Net research and development expense was $2.8 million in the quarter, compared to $2.0 million in the first quarter of 2008.

Selling, general and administrative expenses were $7.4 million in the first quarter, compared to $6.8 million in Q1 2008, while as a percentage of total revenue, SG&A was 13%, down from 15% a year earlier. The year over year increase in SG&A expenses reflects the full operating status in 2009 of the Company’s U.S. location, as well as divisional administration costs which were not present in Q1 2008. As mentioned above, the Company has modified the classification of costs that are included in SG&A, in order to provide management with better visibility of total SG&A spending. Comparable prior year figures for SG&A have been adjusted to conform to the current classification.

Net income for the quarter was $4.4 million, up from $1.9 million in Q1 2008, while earnings per share were $0.06, compared to $0.02 a year earlier.

COM DEV ended the quarter with $9.2 million of cash and equivalents, compared to $16.1 million at October 31, 2008. Operating activities used $3.8 million of cash in Q1 2009, compared to $13.3 million in the first quarter of 2008. COM DEV had outstanding debt of $28.4 million at the end of Q1, including the current portion. In 2008, the Company increased its available line of credit to $27 million from $17 million, with the borrowing terms unchanged. At January 31, 2009, this facility was not drawn upon.

The Company’s basic share count averaged 68,133,978 (fully diluted: 68,296,398) in the first quarter, and stood at 68,238,433 on January 31, 2009. Subsequent to the end of the quarter, the Company issued 7,797,000 new common shares to raise gross proceeds of $23 million (approximately $21.5 million net proceeds) in an equity offering.