MTI Wireless Edge subsidiary wins contract with Israeli Ministry of Defence

Technology group MTI Wireless Edge said on Monday that its distribution and professional consulting services unit had secured a three-year contract with the Israeli Ministry of Defence.

MTI Wireless stated the contract, which comes with an option to extend for a further four years, was expected to be worth $1.4m per annum or a total of $10.0m over seven years.

The AIM-listed group said the contract was won by PSK WIND Technologies, which it acquired a 51% stake in back in January.

PSK has worked for the Israeli MOD for over seven years, providing service and maintenance support, with the contract being a continuation of the same services.

Chief executive Moni Borovitz said: "This is a significant contract win and on a seven-year basis it is the most valuable contract that the group has ever won. The MOD is a tier one defence customer and we are delighted that they wish to retain PSK's services for at least three years.

"PSK is already proving to be a strong acquisition and this contract win, while anticipated, provides us with excellent visibility and confidence over future revenues."

As of 1100 BST, MTI Wireless shares were up 3.65% at 57.16p.

Reporting by Iain Gilbert at Sharecast.com