CGY Calian Group Ltd

Calian Group Ltd. (TSX: CGY) has acquired EMSEC Solutions Inc. (EMSEC), a boutique firm specializing in radio frequency (RF) emission security and technical surveillance countermeasures.

Emissions security relates to the control and prevention of unintentional electrical and electromagnetic emissions that can disclose sensitive or classified information. EMSEC provides technical and professional services including TEMPEST products and other mitigation techniques such as facility zoning (physical distancing, building modifications, separation of IT systems, and other measures). This specialized field is growing as organizations increasingly see a need to protect intellectual property.

EMSEC’s customized services include vulnerability assessments, monitoring, training, risk mitigation and countermeasure sweeps. The firm’s emission analyzer software product, FASTBREAK, provides automated and manual signal analysis supporting production testing, equipment certification, as well as troubleshooting, investigation and research.

“We are excited to be joining a larger market player with a strong presence in cyber security, and look forward to combining our respective expertise,” said Peter Patterson, President, EMSEC. “At EMSEC our personnel have deep experience providing emissions security solutions. Our expertise covers products, certifications, in-field platform testing, emission security vulnerability studies and solutions.”

John Simpson, CTO of EMSEC Solutions, stated, “We are excited about bringing our emissions security subject matter expertise to a world class organization like Calian.  Our combination of unique products and professional/technical services will integrate flawlessly with Calian’s leading cyber security practice.”

“We would like to extend a very warm welcome to the EMSEC team. Their wealth of cyber security expertise will position Calian into a dominant position within the emissions security field and provide our cyber solutions practice with a unique differentiator, setting us apart with a range of offerings and talented services team,” said Sandra Cote, Vice President, Information Technology, Calian. “We look forward to combining EMSEC’s expertise with Calian’s deep bench of cyber security experts to provide even more specialized services for our customers.”

“With annual revenues of approximately $5 million and a positive margin profile, we expect EMSEC to be EBITDA accretive starting immediately,” said Patrick Houston, Chief Financial Officer, Calian. “We are very pleased to see our growth story continue with this acquisition representing innovation and customer diversification.”

“This important acquisition supports both customer diversification and service line innovation, two key pillars within our four-pillar growth strategy,” stated Kevin Ford, President and Chief Executive Officer, Calian. “Innovation and expertise will be key to Calian’s continued growth and evolution. EMSEC’s team will further strengthen Calian’s expertise in the area of government and defence cyber security and provide us with innovative software and technology-enabled services to broaden the depth of our solutions.”

About EMSEC Solutions Established in 2011, EMSEC Solutions Inc. provides consulting expertise in radio frequency (RF) signals analysis, RF vulnerability assessments, technical surveillance and counter measures (TSCM), and mitigation strategies. With backgrounds in the military, government security agencies and law enforcement, its team of RF and TSCM subject matter experts consult on RF engineering, EMI/EMC and TEMPEST technologies. The firm has a products division, technical/professional services division, RF testing/certification lab, and custom engineering and light manufacturing division. The company’s Emission Analyzer software product provides automated and manual signal analysis to decrease time-for-production testing through signal correlation techniques; provide programmable calibration routines to maintain and quickly provide equipment certification; and increase manual and automated features for troubleshooting, investigation and research.

About Information Technology Calian’s IT segment supports customer requirements for subject matter expertise in the delivery of their complex IT solutions. With a primary focus on cloud migration, IT development, support services, SAP consulting and cyber security solutions, Calian supports customers at all levels of government and the private sector in the domestic market. Calian Cyber Security Solutions provides public and private sector organizations with the right people, processes and technology to build actionable plans and keep their environments safe and secure.

About CalianCalian employs over 3,400 people in its delivery of diverse products and solutions for private sector, government and defence customers in North American and global markets. The Company’s diverse capabilities are delivered through four segments: Advanced Technologies, Health, Learning and Information Technology. The Advanced Technologies segment provides innovative products, technologies and manufacturing services and solutions for the space, communications, defence, nuclear, government and agriculture sectors. The Health segment manages a network of more than 1,800 health care professionals delivering primary care and occupational health services to public and private sector clients across Canada. Learning is a trusted provider of emergency management, consulting and specialized training services and solutions for the Canadian Armed Forces and clients in the defence, health, energy and other sectors. The Information Technology segment supports public- and private-sector customer requirements for subject matter expertise in the delivery of complex IT and cyber security solutions. Headquartered in Ottawa, the Company’s offices and projects span Canada and international markets.

For further information, please visit our website at www.calian.com, or contact us at ir@calian.com

Kevin Ford	Patrick Houston	Media inquiries:
President and Chief Executive Officer	Chief Financial Officer
613-599-8600	613-599-8600	613-599-8600 x 2298

DISCLAIMER

Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Such statements are generally accompanied by words such as “intend”, “anticipate”, “believe”, “estimate”, “expect” or similar statements. Factors which could cause results or events to differ from current expectations include, among other things: the impact of price competition; scarce number of qualified professionals; the impact of rapid technological and market change; loss of business or credit risk with major customers; technical risks on fixed price projects; general industry and market conditions and growth rates; international growth and global economic conditions, and including currency exchange rate fluctuations; and the impact of consolidations in the business services industry. For additional information with respect to certain of these and other factors, please see the Company’s most recent annual report and other reports filed by Calian with the Ontario Securities Commission. Calian disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. No assurance can be given that actual results, performance or achievement expressed in, or implied by, forward-looking statements within this disclosure will occur, or if they do, that any benefits may be derived from them.

Calian · Head Office · 770 Palladium Drive · Ottawa · Ontario · Canada · K2V 1C8 Tel: 613.599.8600 · Fax: 613-592-3664 · General Info email: info@calian.com