The Wednesday Report is published weekly by

MPRM Group Limited, 15221 Yonge Street,

Suite 201, Aurora, Ontario, Canada L4G 1L8. Telephone: (905) 841-1277 Facsimile/Data: (905) 841-4389.

Subscription Rates: first class mail delivery $550 yearly, express delivery $715 yearly, single copy $15.

ISSN 0835-6122

Copyright: ©MPRM Group Limited 1995.

in any manner whatsoever, is strictly forbidden without attribution.

Publisher and Editor In Chief: Micheal John O'Brien

Editorial Staff Writer:

Frederick J. Harris

Contributing Editors:

Jim Henderson (Toronto)

Mike Martin (Ottawa)

Patrick McManus (Halifax)

William Kane (Washington DC)

John Reed (London, England)

Moshe Karem (Jerusalem, Israel)

Volume 9, Number 15 April 19, 1995

Page

April 19, 1995

Canada's Aerospace & Defence Weekly

April 19, 1995

Comment

Iranian cargo aircraft regularly land in Zagreb. The aircraft are loaded with small arms and ammunition including automatic rifles, grenade launchers and other combat weapons. Where do these weapons go from Zagreb? To the Bosnian Muslims of course. Last week, The Wednesday Report singled out Russian Colonel Victor Loginov as one person who having served with the U.N. in Croatia, returned to set up an arms trading business. He is not the only one. The Iranian shipments are believed to be offloaded partly in Croatia and mostly in Bosnia. In Croatia there are numerous `trading' (smuggling) enterprises set up with the help of Iran and a host of purportedly independent operators (including the CIA?) which manage in large part the flow of small arms to the Muslim "underdog" in the Bosnian civil war. Silent nations in the know hold out hope that arming the Muslims could pressure the Serbs into putting some sincere effort into negotiations. Meanwhile the United Nations maintains steadfastly it has an enforced arms embargo against the former Yugoslav Republics — while clearly it looks the other way.

BELL LAUNCHES 407

Webb Joiner, president, Bell Helicopter Textron Inc., has announced the Texas-based aircraft manufacturer is developing two new helicopters for the commercial marketplace. Joiner said the company is already flight testing a new helicopter called the Bell 407 and is building a twin engine variant to be called the Bell 407T. So far, Bell reports well over 60 orders for the 407 from customers around the world.

Based in part on Bell's highly successful 206 LongRanger series of light helicopters, the Bell 407 and 407T are equipped with the combat tested four-bladed flight dynamics of the U.S. Army's OH-58D Kiowa Warrior. Capable of carrying seven people at a maximum cruising speed of 138 knots (256 km/hr) the Bell 407 series has seven inches more cabin width than Bell's 206 line, which allows more room for greater passenger seating comfort.

"The Bell 407 is backed by Bell's worldwide reputation for reliability and product support and we're confident the 407 series will have a tremendous impact in the commercial marketplace," Mr. Joiner said. First deliveries for the Bell 407 are scheduled for early 1996. The aircraft is currently undergoing extensive flight development at Bell's Flight Research Centre, Arlington, Texas.

The Bell 407 is powered by a single Allison 250-C47 engine producing 791 shaft horsepower for a five minute takeoff rating and 704 shaft horsepower for continuous operation. The Bell 407T will be powered by two Allison 250-C22B engines each projected to provide 489 shaft horsepower at takeoff and 427 horsepower on a continuous basis.

This increased engine power over earlier light helicopter models, combined with the Kiowa Warrior's exceptional flight dynamics, makes for highly capable aircraft with significantly enhanced performance and longer times between overhaul for greater operating cost efficiency. Both aircraft will be equipped with Full Authority Digital Electronic Fuel Controls (FADEC) which automates engine operating parameters while still retaining a manual override capability.

In addition to the 407 and 407T, Bell will also begin first deliveries of the 430 intermediate twin in early 1996. "This is the first time in Bell's history that we will introduce three new aircraft into the commercial marketplace in the same year." Joiner said. All three helicopters are part of Product Plan 2000, a new product development programme designed to take Bell and its customers into the new century.

SPAR's COMSTREAM DELIVERS VOICE OF VIETNAM'S SAT SYSTEM

Vietnam's only radio network, Voice of Vietnam (VOV) is installing the nation's first digital network using satellite audio broadcast products from Spar Aerospace Limited subsidiary ComStream Corp. in San Diego.

VOV will transmit compressed digital audio from studios in Hanoi to AM and FM transmitters in 53 provinces covering the entire 1,000-mile length of the country. The network will use 100 ComStream ABR200 audio broadcast receivers, including receive sites in each province and spare units. Plans are also in the works for satellite transmissions of the VOV message to far-flung Vietnamese populations in Europe and other parts of the world.

Emerging nations such as Vietnam are finding that digital satellite networks offer an ideal solution to the challenge of dispersing information to their people — especially in the absence of an existing communications infrastructure. In many cases, these emerging nations are able to leapfrog analog technology and rapidly deploy advanced digital satellite networks, which overcome the geographical obstacles that contribute to delays in the installation of hard-wired networks.

By taking advantage of digital compression technology, digital satellite networks also make it economically more feasible to build wide-ranging broadcast networks. ComStream was the first to market with products utilizing world-standard ISO/MPEG compression, enabling broadcasters to efficiently distribute programming from a central studio to many affiliate stations or transmitters by satellite.

The system saves 35 percent to 65 percent in transmission costs compared with other satellite transmission methods, while improving audio fidelity to compact-disc quality.

"As Vietnam opens to the global marketplace, we are seeing increasing demand among our people for information and entertainment," said Huynh Ngoc An, deputy director general for VOV. "ComStream has a clearly established track record in providing advanced technology and digital networks, so they were selected to implement this network."

VOV will broadcast three channels of music, news and public affairs programming. One channel will transmit full stereo, one will broadcast dual mono, and an extra is available for backup. VOV is leasing satellite capacity on Palapa from TELCOM in Indonesia.

PATRICIA WO AWARDED MEDAL OF BRAVERY

Warrant Officer William Alexander Johnson, 2nd Battalion Princess Patricia's Canadian Light Infantry has been awarded the Medal of Bravery for his action on 27 September, 1993. On that date while serving with 2 PPCLI near Medak, Croatia, he was part of a three-man patrol which responded to a report of a wounded French peacekeeper trapped in a minefield. Despite darkness, driving rain and strong winds the patrol reached the heavily mined area only to be greeted by small arms and machine gun fire as a result of mistaken identity. Although the patrol had been ordered to abandon the rescue attempt because of the high degree of danger, WO Johnson convinced his patrol commander to persevere. He then led the way into the minefield, cutting trip wires to the mines to clear a path to the wounded soldier.

SINGLE-CHIP QAM DEMODULATOR QUADRUPLES CABLE CAPACITY

Cable television service providers worldwide can now quadruple channel capacity, while providing high-quality digital video, audio and other services to their customers.

The enabling technology is a circuit called the CDTV 256 QAM demodulator, which is integrated into a TV set-top box. It is the first single-chip 16, 64 and 256 QAM demodulator in the world, and was designed and developed by Spar's ComStream Corp.

ComStream pioneered the development of several Application Specific Integrated Circuits (ASTCs) that are already enabling other U.S. companies to prosper in the growing digital satellite TV business. For example, three ComStream custom ASTCs are used in the satellite receiver produced by Thompson Consumer Electronics — the product that facilitates the new RCA Digital Satellite System.

The RCA DSS system enables consumers to access direct-to-home TV services provided by Hughes DIRECTV and United States Satellite Broadcasting (USSB). ComStream is the only company in the world with volume manufacturing experience of what is considered the most critical and difficult electronics component of the RCA DSS receiver.

The ComStream project team for the Cable TV QAM chip was able to accomplish the complex design task — from system design through algorithm, logic design and test to a successful integrated circuit fabrication — in less than eight months. This rapid ASIC development is a ComStream core competency.

COMSTREAM's DIGITAL AUDIO UPLINKING PRODUCTS

Two new satellite digital audio uplinking products from ComStream are giving broadcasters more efficient and resilient audio distribution networks.

ComStream's DAC700 audio encoder/multiplexer features a smaller chassis size and can automatically change its data rate and other operating modes. Efficiency in use of equipment space is gained because more uplink channels can now fit into less rack space. And efficiency in long-term network operation is gained because a spare DAC700 can dynamically configure itself to match any online audio uplink channel, giving users true, automatic backup for their networks.

Along with the new DAC700, ComStream is introducing an all-new Digital Audio Uplink rack. This pre-wired rack is a complete audio encoder and satellite transmitter — now with up to eight channels of audio in a single rack, instead of only four. All components are mounted, wired and tested as a complete system at the factory for simple "plug and play" installation.

The uplink includes the pre-wired audio rack and an RF terminal. The ComStream Audio Network Management System is an option that gives users an easy-to-use Windows-based computer system for setting up and running a network.

"ComStream is known for building resilient networks that bounce back from any problems to remain on the air," said ComStream Broadcast Services Vice President Merritt Doyle. "The new DAC700 is able to change rates and modes by remote control, so it works more efficiently with our other products. When you couple that with its new compact size, it adds up to more reliability and more efficiency for our customers."

The `Digital Audio Linkup', along with the ComStream family of SCPC audio receivers, builds a network that provides the most reliable and cost-effective digital audio distribution available. These products were the first to utilize the industry standard ISO/MPEG Layer 2 audio compression. ComStream network users save 35-65 percent in monthly charges for transmitting audio by satellite, compared with alternative networks.

ALERT RESUPPLY MISSION UNDERWAY

The spring resupply of CFS Alert (OPERATION BOXTOP 1/95) is underway. It started last Friday with the deployment of Air Transport Group aircraft and crews to Thule, Greenland. Over the next two weeks three CC130 Hercules and eight flight crews are scheduled to work round the clock to lift approximately 428 thousand gallons of fuel from Thule to Alert in the Northwest Territories. The operation is scheduled to be completed by 28 April, 1995.

COM DEV FORMS JOINT VENTURE WITH BRITISH PARTNER

Premier Frank McKenna joined COM DEV International of Cambridge, Ontario and Phase Devices Limited of Luton, England today (April 18) in announcing the creation of a joint venture company in Moncton that will manufacture products for a growing worldwide personal communications systems (PCS) market.

The new corporation, Phase Atlantic Limited, has selected Moncton as the location for its North American plant to manufacture advanced telecommunications products for PCS base stations. Prototype production has already begun at COM DEV's existing facility, COM DEV Atlantic, in the Caledonia Industrial Park. Over the next two years, the building will be doubled in size. As a result, employment at this facility is expected to reach 177 people by the end of 1997. Phase Atlantic also expects to subcontract more than 40 percent of the cost of its products with local companies.

"The mobile communications market is exploding, and all indications are that Phase Atlantic is uniquely positioned with the right technology to capture a significant market share," said David Hoare, President of Phase Atlantic. "COM DEV Atlantic and Phase Devices are already world leaders in the supply of components for aeronautical and satellite communications, so it was natural for us to collaborate in developing next-generation products for the global wireless voice, data and fax marketplace."

"We are very pleased that Phase Atlantic is establishing this high-tech industry in New Brunswick," said Premier Frank McKenna. "This project will put New Brunswickers to work in high quality, good paying jobs. As well, it will have significant economic spinoffs for our manufacturers, as the company's primary function will be assembly and testing. This is expected to create an additional 120 indirect jobs."

"COM DEV Atlantic's established presence, coupled with the Province of New Brunswick's commitment to the development of new businesses, made Moncton's selection a natural choice," said Val O'Donovan, Chairman and CEO of COM DEV.

O'Donovan went on to credit the North American Free Trade Agreement for making possible Moncton's selection over several U.S. sites. "It makes economic sense for Phase Atlantic to take advantage of lower costs in Canada to manufacture for the entire North American market."

Hoare added that the company has already been awarded its first export contract by Northern Telecom of Raleigh, North Carolina, valued at $1.2 million. "It is a definite boost for Phase Atlantic," Hoare said. "The contract assures us of rapid market acceptance of our products and validates our expectations of rapid market growth."

In establishing the new company, COM DEV and Phase Devices have contributed facilities, infrastructure and capital, as well as an established customer base. Phase Atlantic will be owned 51 percent by COM DEV and 49 percent by Phase Devices.

"We anticipate $10 million in the first year revenues, and expect to double this figure annually as the multibillion dollar North American PCS market expands between now and 1998," said Pravin Sood, Chairman, Phase Devices Ltd.

Personal Communications Services (PCS) is a new, portable, digital cellular telephone system that will be introduced in North America beginning next year. A similar system has been operating in Europe for several years already. Over the long run, PCS will evolve so that PCS subscribers will be assigned a single personal telephone number which they will retain for life and will work anywhere they move or live in North America. PCS differs from existing cellular telephone systems in that it generally operates over shorter range but is better suited for use in cities where it will operate inside buildings, theatres, shopping centres and subways.

Due to its digital architecture that permits use of voice compression techniques, PCS service can be offered at prices expected to be less than half the cost of today's cellular telephone systems. PCS is a companion rather than a replacement for cellular telephones. Subscribers requiring extended range service in more remote locations — in city suburbs and between cities — will continue to use the conventional cellular systems.

COM DEV of Cambridge, Ontario is Canada's leading exporter of commercial space equipment. The Company is the world's premier supplier of multiplexing and switching equipment for communications satellites, supplying more than half of the western world's requirement. Founded in 1974, COM DEV is Canadian-owned and is one of the top thirty companies in Canada in terms of its investment in research and development.

COM DEV Atlantic, a wholly owned subsidiary of COM DEV, was established in Moncton in 1991 to address the space science instrument market. The COM DEV Atlantic facility is providing a support base from which to launch its new sister company. Both companies will share the same facility in Moncton while prototypes are developed, new personnel are hired and trained, and while a new built-to-purpose facility for Phase Atlantic is constructed on the same site in Moncton's Caledonia Business Park.

Phase Devices, 28 percent owned by COM DEV, was founded in 1984 by three engineers who recognized the enormous growth potential in telecommunications. Today the 120-employee company is a leading international supplier of high-performance low-loss diplexers, low-loss combiners, and receive multicouplers to original equipment manufacturers (OEMs) of cellular base stations and operators. Mr. Hoare is one of the founders of Phase Devices Ltd.

BOEING 777 TOURS GLOBE ON INTRO CRUISE

Just one month before its first delivery, the new Boeing 777 is embarking on an ambitious three-week tour that will take the world's largest twinjet almost 70,000 kilometers (43,000 miles) to 10 countries. Boeing Commercial Airplane Group is mounting the 777 "World Celebration Tour" to provide a sneak preview of the newest Boeing jetliner to its customers, government officials, aviation industry experts and the news media.

According to Boeing's Richard Albrecht, executive vice president of Business Acquisition, the tour is intended to satisfy worldwide interest in the new airplane, which can fly faster and farther with lower operating cost than any of its competitors, and provides an all-new standard of passenger comfort.

"The Boeing 777 is a magnificent airplane and much of the credit goes to our customers, who were involved from the very beginning in developing the airplane's size, range and configuration," Albrecht said. "By working together with our customers, we have created an airplane with the features, innovations and capabilities that will set the standard well into the next century.

"The tour is a way to celebrate the successful outcome of four and a half years' effort and to thank some of our customers by allowing them to experience the 777 first-hand."

Despite the downturn in the airline industry, the 777 has captured more than 70 percent of all orders in its market category since its October 1990 launch. Fifteen customers on four continents have placed orders for 144 of the new 777s, with options for 99 more. Albrecht attributed the 777s order success to the airplane providing greater value to its customers on several counts.

"The 777 not only has the range, seating capacity and technologies the airlines want, but it offers them operating costs that are about 9 percent below the competition," he explained. "The airplane also has an interior that can be reconfigured in hours rather than weeks and provides passengers a spacious, open cabin, with more head room, the widest interior in its class, the widest economy seat to go into service and the most advanced in-flight entertainment and business capabilities available."

Some of the existing 777 customers along the aircraft's planned tour and the number of airplanes they have on order are Korean Air Lines (8); China Southern Airlines (6); British Airways (15); Thai Airways International (8).

Boeing will also be showing the 777 to Asiana, Air China, EVA Airlines, China Airlines, Air India, South African Airways, Malaysia Airlines and Singapore Airlines. Each of these airlines currently operates Boeing jets.

The aircraft used for the tour, the third 777 produced, ultimately will be delivered to United Airlines, which takes first delivery of the 777 May 15, with ceremonies May 17. There are 14 777s that have rolled out and 13 more in some stage of major assembly at the Boeing wide-body factory in Everett, Washington, where 747s and 767s also are produced.

AIRBORNE SOLDIERS FORM BASIS OF NEW INFANTRY UNITS

The soldiers from the now disbanded Canadian Airborne Regiment will be returned to their parent regiments where they will form the basis of the new light infantry battalions promised in the White paper on Defence. In a news conference held last Wednesday, the Chief of Defence Staff, General John de Chastelain announced that each of the three infantry line regiments, The Royal Canadian Regiment at CFB Petawawa, The Princess Patricia's Canadian Light Infantry at CFB Edmonton and the Royal 22nd Regiment at CFB Valcartier will absorb the airborne soldiers in newly created parachute companies. Those companies will serve as the cadres of three new infantry battalions, eventually bringing the total infantry strength up to nine battalions from the existing six fully active ones thus easing the strain of maintaining our heavy peacekeeping commitments, particularly in the former Yugoslavia.

The existence of a parachute capability in the line regiments is not new. Prior to the organization of the Canadian Airborne Regiment in 1968, each infantry regiment had a parachute capability. When it was organized along the lines of a United States Army regimental combat team in 1968 the Canadian Airborne Regiment absorbed the parachute companies and expanded them into mini-battalions, called commandos, along with supporting elements such as artillery, light reconnaissance and logistics support. That organization was abandoned in 1992 when the Airborne was reduced in size to the equivalent of one infantry battalion.

CALENDAR

May 9/11 — Dataware Technologies is offering at no charge to The Wednesday Report's readers its "1995 Spring Seminar Series", a comprehensive half-day seminar series that provides a closer look at advanced electronic publishing solutions. Issues addressed by the seminar will include when to outsource and when to develop in-house; when either CD-ROM or `online' is more appropriate; and how CD-ROM and online can compliment one another. The seminar — to be held in Ottawa on May 9 and in Toronto on May 11 — will also address questions surrounding CD-recordable technology and publishing across the Internet. For more information, or to register, call 1-800-229-8055 and ask for the Seminar Desk.

June 1 — The Canadian Defence Preparedness Association will hold a two-day Maritime & SAR Helicopters Exhibition & Seminar to provide government officials and Canadian industry a forum in which to interact with helicopter manufacturers and to explore the current military helicopter requirements and various equipment options to meet these requirements. The seminar will take place at Hanger #10, International Airport, Ottawa. Fees include both June 1 and 2. Registrations must be made by May 22, 1995. For information, contact CDPA, 500 - 100 Gloucester St., Ottawa, ON, K2P 0A4; phone (613) 235-5337 or fax (613) 235-0784.

June 1 — The Military Vehicles Exhibition and Seminar, to be held at the Ottawa International Airport, is a two day seminar and exhibition sponsored by the Canadian Defence Preparedness Association to provide government and industry representatives the opportunity to discuss current military vehicle requirements and a range of possible solutions. Fees are payable in advance. Registrations must be made by May 22, 1995, after which date cancellations will not be accepted. For registration information contact Canadian Defence Preparedness Association, 500 - 100 Gloucester Street, Ottawa, ON, K2P 0A4; phone (613) 235-5337 or fax (613) 235-0784.

June 7 — The Spring Meeting of the Industrial Benefits Association of Canada will be held at the Ottawa Congress Centre, 55 Colonel By Drive, Ottawa, Ontario. The meeting will deal with subjects relating to a revised Canadian industrial regional benefit policy; Canadian small business set aside programme; international offsets; and an introduction to countertrade. The meeting is open to all who wish to attend, but pre-registration is a requirement. For more information, contact Bob Brown at 1538 Featherstone Drive, Ottawa, Ontario, K1H 6P2, telephone/fax: 613-733-0704.

August 9-13 — Airshow Canada's 1995 international aviation & aerospace tradeshow will be held at Abbotsford in British Columbia. The event incorporates the 1995 CBAA (Canadian Business Aircraft Association) trade show and aircraft display. Contact Airshow Canada at P.O. Box 6, Abbotsford, BC, Canada, V2S 4N9. Telephone: 604-852-4600. Telefax: 604-852-3704.