The acquisition is designed to increase Foster-Miller’s already rapid growth in commercial and defense markets. The company will continue current operations and expects that the new ownership will lead to a 15% increase in employment over the next year at the company’s Waltham campus. Foster-Miller will maintain its name and operate as a subsidiary of QinetiQ, Inc.

According to Dr. William Ribich, CEO and President of Foster-Miller, “The skill sets of QinetiQ and Foster-Miller are uniquely complementary. This acquisition is a prime opportunity for Foster-Miller to add new personnel, technology and financial resources. This will allow continued expansion and growth in the commercial and defense markets in the US, UK and around the globe.”

According to Dr. Ribich, who will remain in his post as CEO and President, the merged companies plan to build on their many synergies and exploit their similar culture. Recognizing the intellectual assets of the employees as the key to their success, Ribich said, “There is no anticipated change to the work of most employees or to our management structure; it will be business as usual. We will continue to be creative, flexible and responsive in providing solutions that will increase the competitive advantage of our customers.”

“Strategically, the acquisition of Foster-Miller is key to achieving QinetiQ’s goal of significantly growing our US business,” comments Dr. David Anderson, President and CEO of QinetiQ Inc., QinetiQ’s US operating company. “Foster-Miller is a remarkable fit with QinetiQ, both technologically and culturally. A recognized leader in providing innovative engineering solutions in fields such as robotics, advanced materials technology and medical devices, its complementary R&D work and broad range of customers will undoubtedly accelerate QinetiQ’s expansion into the world’s largest market for advanced technology.”

QinetiQ (pronounced ki’ ne tik as in ‘kinetic energy’) is Europe’s largest science and technology solutions company, with revenue of $1.4 billion in FY03. It employs over 9,000 staff, including many of the UK’s leading scientists and internationally acclaimed experts. Founded from the laboratories of the UK Ministry of Defence (MOD), today QinetiQ operates in markets as diverse as marine, energy, telecommunications, automotive, rail, electronics, defense, space, health, oil and gas, aerospace and information technology. QinetiQ’s facilities include laboratories, clean rooms, indoor and outdoor ranges, wind tunnels, marine testing facilities, automotive test tracks, and climatic testing facilities. QinetiQ’s heritage covers the pioneering research and development of many household technologies such as liquid crystal displays (LCDs), carbon fiber, the technology for flat panel speakers, infra-red sensors and microwave radar, a life saving fetal heart monitoring system, plus other significant advancements in the areas of defense, security, transportation and healthcare. Visit http://www.QinetiQ.com for further information.

Foster-Miller, Inc. is an independent, privately held engineering, development and manufacturing company located in suburban Boston, MA, with additional offices in Albany, NY and Washington, DC. The firm was founded almost 50 years ago by three graduates of MIT who believed there was a need for a company that could solve clients’ difficult technical problems through first-class analysis and design. The company maintains a staff of more than 350 mechanical, electrical, thermal, chemical, nuclear, aerospace, software, and materials engineers as well as metallurgists, physicists, mathematicians, chemists, biologists, and support staff working in the areas of transportation, robotics, advanced materials, custom machinery, power systems, biotechnology, and aerospace. It is also a major manufacturer of military and industrial robots as well as armor products that protect troops.

Houlihan Lokey Howard & Zukin Capital acted as financial advisors to Foster-Miller, Inc. on the transaction.