This is a follow on order to a previous $6.1 million framework agreement with the Ministry of Defense.
Magal Security Systems (Nasdaq: MAGS; TASE: MAGS) today announced that it has been chosen by the Israeli Ministry of Defense as the successful bidder in the installation of a perimeter intrusion detection systems along a further 40 kilometers of the seam line in Israel. Magal stated that the total amount of the order is about $4.2 million.
The majority of the order is expected to be installed before the end of 2005. This order is a follow on order in addition to a previous $6.1 million framework agreement the company announced in March of this year for installation of its systems along the seam line.
The order also included an option, which will automatically enable the Israeli Ministry of Defense to increase the order by a further $5 million. Magal's management stated that, assuming there are no unusual events, the Ministry of Defense will exercise this option and increase the order before the end of the year.
Published by Globes [online], Israel business news - www.globes.co.il - on Thursday, August 04, 2005