Kromek Group PLC Kromek awarded further contract by DARPA (5022K)

TIDMKMK

RNS Number : 5022K

Kromek Group PLC

17 April 2015

Approved for Public Release, Distribution Unlimited

17 April 2015

Kromek Group plc

("Kromek" or the "Company")

Kromek awarded further $2.02m contract by DARPA

First high volume production order from US defense agency for networked radiation detectors as lower price point achieved through technological advancement

Kromek, a radiation detection technology company focusing on the medical, security and nuclear markets, is pleased to announce that it has been awarded a modification to its existing contract with the Defense Advanced Research Projects Agency (DARPA), an agency of the U.S. Department of Defense, for the volume supply of radiation network detectors. The contract modification, to be delivered over a 16-month period, is worth up to an additional $2.02m in aggregate.

The programme with DARPA, which commenced in August 2014, is to develop an advanced personal detection system for gamma and neutron radiation that can be combined with other such systems to form large networks that can provide information on radiation signatures over an extended area. To date, Kromek has been awarded $4.35m in contracted revenues under the SIGMA programme with DARPA.

During the initial stages of SIGMA, Kromek developed a new product, the D3S, to meet the performance requirements of both gamma and neutron detection in a small form factor with excellent battery life. This latest contract modification is for the production of 1,000 D3S detectors at a price of $1,000 per device. The funds under this contract modification will also be utilised to continue to develop more advanced detector solutions with additional capabilities in the coming months.

Kromek was able to achieve the $1,000 price point through technological advancement and an innovative approach. The Company will make this price and volume available to other organisations in addition to DARPA, and is aggressively pursuing the ultimate price target of the programme of $400 per detector at a quantity of 10,000.

Arnab Basu, CEO of Kromek, said: "Under the SIGMA programme, Kromek has developed a revolutionary new product, the D3S, which goes well beyond the state-of-the-art for performance. We are delighted to receive another extension of the current contract from DARPA, which reflects the excellent progress the Kromek team has made. That we were selected by an agency of the U.S. government provides validation of our technological strength and capabilities, and demonstrates our leading position in the global markets. We look forward to achieving further milestones in this project and, ultimately, enabling safer environments for all."

Enquiries

 
 Kromek Group plc 
---------------------------------------  -------------- 
 Arnab Basu, CEO 
  Derek Bulmer, CFO                       01740 626 060 
---------------------------------------  -------------- 
 
 Panmure Gordon (Nominated Adviser and 
  Broker) 
---------------------------------------  -------------- 
 Freddy Crossley - Corporate Finance 
  Charles Leigh-Pemberton - Broking       0207 886 2500 
---------------------------------------  -------------- 
 
 Luther Pendragon 
---------------------------------------  -------------- 
 Harry Chathli, Claire Norbury, Alexis 
  Gore, Oli Hibberd                       0207 618 9100 
---------------------------------------  -------------- 
 

About Kromek Group plc

Kromek Group plc is a UK technology company (global HQ in County Durham) and a leading developer of high performance radiation detection products based on cadmium zinc telluride ("CZT"). Using its core CZT technology Kromek designs, develops and produces x-ray and gamma ray imaging and radiation detection products for the medical, security screening and nuclear markets.

The Group's products provide high resolution information on material composition and structure and are used in multiple applications, ranging from the identification of cancerous tissues to hazardous materials, such as explosives, and the analysis of radioactive materials.

Kromek uses multiple technologies in its manufacturing processes, including the established methods of 'liquid phase' detector production, and also 'vapour phase' production methods, which allow the production of high quality, high performance detectors on an industrial scale. Kromek has an intellectual property portfolio of more than 250 pieces of IP.

The Group's business model provides a vertically integrated technology offering to customers, from the growth of CZT crystals to finished products or detectors, including software, electronics and application specific integrated circuits ("ASICs").

The Board believes that the vertical integration offered by Kromek, combined with the benefit of 25 years of research into CZT production and the patents and trade secrets accumulated by the Group, are unparalleled in the market place.

The Group has operations in the UK, Germany and US (California and Pennsylvania), and is selling internationally through a combination of distributors and direct OEM sales.

Currently, the Group has over a hundred full time employees across its global operations.

This information is provided by RNS

The company news service from the London Stock Exchange

END

CNTBCGDSSUBBGUL