FLIR Awarded $92.9 Million Contract for Logistics Support to U.S. Army Product Manager Force Protection Systems

Contract to Provide for Refurbishment of FLIR’s Advanced Surveillance Sensors

ARLINGTON, Va., December 16, 2019 ― FLIR Systems, Inc. (NASDAQ: FLIR) announced that it has been awarded a five-year, firm-fixed-price Indefinite Delivery, Indefinitely Quantity (IDIQ) contract by the U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland. The IDIQ vehicle has a ceiling value of $92.9 million, with an initial order of $5.2 million.

The award is for repair, refurbishment, and logistics support of electro-optical (EO) and infrared (IR) sensors used by the Army's Product Manager Force Protection Systems programs, including Base Expeditionary Targeting Surveillance System-Combined (BETSS-C), Combat Outpost Surveillance Force Protection System, and Foreign Military Sales.

BETSS-C entails a combination of cameras and surveillance equipment mounted on deployable towers and used to monitor wide areas around important military locations and bases. FLIR has been part of the BETSS-C effort since 2004 when it was called RAID, providing long-range EO/IR sensors at the heart of the system. Today, the company supplies high-definition sensors for BETSS-C as well as radars capable of detecting vehicles, people, or other moving objects at range.

FLIR has delivered more than a thousand EO/IR sensors to the U.S. Army as part of the BETSS-C program. This latest IDIQ maintains the service partnership and related revenues FLIR has accrued with the Army, while augmenting the company’s ability to meet their needs.

“BETSS-C is a critical piece of technology that supports the safety of U.S. forces and its allies at locations around the world,” said David Ray, president of FLIR Systems’ Government and Defense business unit. “We value this opportunity to support the Army and optimize the capabilities of this vital surveillance system.”

The contract covers a five-year period of performance starting in the fourth quarter of 2019. Work will be performed at FLIR’s Wilsonville, Oregon site and international repair facilities.

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About FLIR Systems, Inc.

Founded in 1978, FLIR Systems is a world-leading industrial technology company focused on intelligent sensing solutions for defense, industrial, and commercial applications. FLIR Systems’ vision is to be “The World’s Sixth Sense,” creating technologies to help professionals make more informed decisions that save lives and livelihoods. For more information, please visit www.flir.com and follow @flir.

Forward Looking Statements

The statements in this release by David Ray and the other statements in this release about the contract and order described above are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on current expectations, estimates, and projections about FLIR's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including the following: the ability to manufacture and deliver the systems referenced in this release, changes in pricing of FLIR's products, changing demand for FLIR's products, product mix, the impact of competitive products and pricing, constraints on supplies of critical components, excess or shortage of production capacity, the ability of FLIR to manufacture and ship products in a timely manner, FLIR's continuing compliance with U.S. export control laws and regulations, and other risks discussed from time to time in FLIR's Securities and Exchange Commission filings and reports. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made and FLIR does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release, or for changes made to this document by wire services or Internet service providers.