QinetiQ Group plc, an international defence and security technology company announced today that it has signed an agreement to purchase Ball Solutions Group from Ball Aerospace & Technologies Corp. of Broomfield, Colorado, USA for a total cash consideration of A$12 million.  The acquisition represent QinetiQ's first investment in Australia.

This acquisition represents the continuing execution of QinetiQ's strategy to grow its Europe, Middle East and Australasia (EMEA) capabilities.  It will enhance QinetiQ's portfolio of defence and security based expertise, provide additional routes to market and broaden QinetiQ's customer base through existing relationships and contractual arrangements.

Graham Love, group chief executive officer of QinetiQ commented that the acquisition "reflects our confidence in the strength of the Australian defence market and will establish QinetiQ as a leading provider of independent advice services within the country". He added that QinetiQ will also be seeking to leverage synergies between the Australian operations and QinetiQ's businesses in the UK and USA to provide additional benefits to Australian customers.

Dick Hedges welcomed the acquisition of Ball Solutions Group by QinetiQ stating that "We have worked with QinetiQ for some time and we share the common objective of providing independent defence services in Australia, the United Kingdom and the United States."

The acquisition is subject to Australian and US Government regulatory approval and is expected to complete by the end of February 2008, after which the company will trade as QinetiQ Consulting Pty Ltd. For a full transcript of QinetiQ's News release, go to http://www.qinetiq.com/home/newsroom/news_releases_homepage.html.