Mr. Mike Greenley reports

MDA SPACE ANNOUNCES DEFINITIVE AGREEMENT TO ACQUIRE US-BASED BLUE CANYON TECHNOLOGIES LLC

MDA Space Ltd. has signed a definitive agreement to acquire 100 per cent of the membership interests of Blue Canyon Technologies LLC in an all-cash transaction for a purchase price and enterprise value of $620-million (U.S.) (approximately $874-million (Canadian)), subject to purchase price adjustments. Blue Canyon Technologies (BCT) is a spacecraft and satellite component manufacturer and mission services provider, currently part of RTX's Raytheon business.

Highlights:

• Expands total addressable market for MDA Space;
• Positions company to further pursue substantial U.S. defence market opportunities;
• Adds a profitable, cash-generating business with 18-year history;
• Transaction expected to be accretive to adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) and adjusted EPS (earnings per share) in 2027;
• Adds high-quality spacecraft and satellite component supplier business and $3.5-billion (U.S.) (approximately $4.9-billion (Canadian)) to pipeline;
• Complementary technology and customer set;
• Adds key talent and manufacturing facilities in Denver, Colo., space and aerospace hub.

With more than 85 spacecraft launched and more than 3,500 products on orbit, BCT has established impressive flight heritage and mission success since the company was founded in 2008. Once completed, the transaction is expected to provide MDA Space with a strategic business and manufacturing footprint to capitalize on growing demand in the U.S. government market for defence space missions. With over 400 highly skilled employees and two manufacturing facilities in the Denver, Colo., space and aerospace hub, BCT offers a diverse and innovative product portfolio that enables a broad range of missions for the space economy.

"The acquisition of Blue Canyon Technologies is expected to accelerate our growth strategy by increasing our U.S. market opportunities with highly complementary capabilities, local manufacturing footprint, and a skilled and specialized talent base," said Mike Greenley, chief executive officer of MDA Space. "Securing those strategic benefits on an accretive basis with a profitable and cash-generating business makes this an ideal fit for MDA Space expansion and continued shareholder value creation."

Transaction details

The transaction will add a profitable, cash-generating business that is expected to be accretive to adjusted EBITDA and adjusted EPS in 2027. With an 18-year history, BCT is a high-quality spacecraft and satellite component supplier that will add $3.5-billion (U.S.) (approximately $4.9-billion (Canadian)) to MDA Space's opportunity pipeline. The transaction is expected to close by the end of 2026, subject to customary closing conditions and required regulatory approvals, and is fully committed and financed at signing through senior secured debt. As part of MDA Space's continuing capital allocation framework, the company will evaluate opportunities to optimize its capital structure over time, subject to market conditions and broader capital deployment priorities. This transaction is expected to result in 2026 pro forma leverage within MDA Space's stated target range of 1.5 times to 2.5 times net debt to last-12-month adjusted EBITDA.

Conference call

MDA Space will host a conference call and webcast to discuss the transaction on Friday, June 19, 2026, at 8:30 a.m. ET. Interested parties can join the call by dialling 1-416-945-7677 (Toronto area) or 1-888-699-1199 (toll-free North America) or 44-800-279-7040 (toll-free United Kingdom) and entering the conference ID 30111. A live webcast of the conference call and an accompanying slide presentation will be available on-line.

A replay of the webcast will be archived on the MDA Space investor relations website following the call. Parties may also access a recording of the call, which will be available until June 26, 2026, by dialling 1-888-660-6345 and entering the passcode 30111 followed by the number sign.

About MDA Space Ltd.

Building the space between proven and possible, MDA Space is a trusted mission partner to the global defence and space industry. A robotics, satellite systems and geointelligence pioneer with a 55-year-plus story of world firsts and more than 450 missions, MDA Space is a global leader in communications satellites, Earth and space observation, and space exploration and infrastructure. The global MDA Space team of more than 4,000 space experts has the knowledge and know-how to turn an audacious customer vision into an achievable mission -- bringing to bear a one-of-a-kind mix of experience, engineering excellence and wide-eyed wonder that has been in the company's DNA since day one. For those who dream big and push boundaries on the ground and in the stars to change the world for the better, MDA Space will take you there.

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