July 9, 2007
Colt Defense Posts New Terms and Conditions of Purchase

Colt Defense LLC has published revised Terms and Conditions of Purchase. The new Terms and Conditions of Purchase are effective immediately on all new purchase orders placed by Colt Defense.

Colt Defense’s updated Terms and Conditions of Purchase have been developed as part of our ongoing effort to employ best practices in all aspects of our business. As that mission continues, we may modify or amend our Terms and Conditions of Purchase from time to time in the future. The most current Terms and Conditions will be available at all times on our website and will be incorporated into all future purchase orders.

Click here to access the new Terms page.

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The M4 Carbine is the Army's primary individual combat rifle for Infantry, Ranger, and Special Operations forces. Since its introduction in 1991, the M4 carbine has proven its worth on the battlefield because it is accurate, easy to shoot and maintain. The M4's collapsible stock and shortened barrel make it ideal for Soldiers operating in vehicles or within the confines associated with urban terrain. The M4 has been improved numerous times and employs the most current technology available on any rifle/carbine in general use today.

The M4 is the highest-rated weapon by Soldiers in combat, according to the Directorate of Combat Development, Ft. Benning, Ga. In December 2006, the Center for Naval Analysis conducted a "Soldiers' Perspective on Small Arms in Combat" survey. Their poll of over 2,600 Soldiers reported overwhelming satisfaction with the M4. The survey included serviceability and usefulness in completing assigned missions in Iraq and Afghanistan.

Similar to its programs ensuring the best body armor, armored tactical-wheeled vehicles, and force protection equipment for its fighting force, the Army continues to improve its capabilities to ensure our Soldiers are protected and best able to continue to execute any assigned mission. The U.S. Army Infantry Center is conducting a study to refine the Army's Small Arms Strategy, which focuses on the employment of rifles, carbines, ammunition caliber, and future technologies. All Services are participating in this study, which is expected in the July/August 2007 timeframe.

The Army has approximately 225,000 M4/M4A1 carbines in the inventory, with more procurement programmed.

Link to the government site and read the position paper on the Colt M4 Carbine

http://www.army.mil/-newsreleases/2007/

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West Hartford, Connecticut, March 26, 2007 –

Dear Editor,

Until the cancellation of the XM8 program in 2005, Army Times strongly promoted the HK XM8 for its adoption as the service weapon for the US Army.

In the recent feature article, "Better Than the M4 But You Can’t Have One" Staff Writer Matt Cox attributes cancellation of the XM8 program to "a sea of bureaucratic opposition." The story fails to mention a DoD Inspector General report on the acquisition of the Objective Individual Combat Weapon dated October 7, 2005, which addresses the XM8 Program and is found at http://www.dodig.mil/audit/reports. This report clearly stated the rationale, which indicated the XM8 offered no potential efficiency over the present weapons systems, as well as including mismanagement by those persons responsible for the program, both of which clearly may have been a strong consideration in the cancellation of the program. Another related and informative DoD IG report is Competition of the 5.56 Millimeter Carbine (D-2007-026) dated November 22, 2006 and is found at the same Web site.

Cox’s story about the HK 416 references unnamed experts and mis-represents comparisons between the HK 416 and M4. Additionally, he used findings in an unpublished draft 2001 SOCOM report on the M4 and a Marine Corps test of the M4 in 2002 without informing the reader that the Army did not agree with the report findings nor does it take into consideration the measures taken immediately by the Army and Colt to eliminate those few problems with weapon improvements. Instead, the story argues for adoption of the German manufactured HK 416 for the entire US Army now in use by a group of elite operators within Special Operations Command who rightfully develop their own kit of weapons and modify them to their needs.

Additionally, the story very wrongly alleges that Army leadership is not providing our men and women in uniform the best weapon available and, more disturbing, irresponsibly raises a concern to the Soldiers, Marines and Special Operations Forces in combat in Iraq and Afghanistan and their families that their service weapon is not reliable.

The M4 speaks for itself as to its combat credibility. Before its introduction into the U.S. Army inventory in 1994, it was subjected to the full range of required Army tests and evaluations. The HK 416 has never been subjected to any of these official government tests.

From fall 2002 to today, government quality deficiency reports for the M4 have been nearly non-existent. Additionally, from fall 2002, U.S.Government inspectors at the Colt plant have overseen the firing of nearly 4 million endurance rounds with only three endurance gun failures.

The gas piston system in the H&K 416 is not a new system. Rifles were being designed with these systems in the 1920’s. Colt proposed a piston operated weapon to the Army in the early 1960’s. Today Colt Defense has the ability and expertise to manufacture in great numbers piston system carbines of exceptional quality should the U.S. military services initiate a combat requirement for this type of weapon.

Cox’ anecdotal examples of fouled weapons are not taken lightly, yet the information is not helpful if the type of fouling is not clearly defined. In a desert environment, for example, sand and dust have the same effects on a weapon, whether it has a gas piston system or a gas impingement system. This issue is completely different from a debate over a gas piston system operating cleaner than a gas impingement system. Is a gas piston operated weapon less vulnerable to the effects of the desert than a gas impingement system? If so, where are the results of the controlled tests? Additionally, there are a number of reasons for weapons fouling, including the reliability of the ammunition and reliability of magazines.

The M16 and M4 have undergone major enhancements since introduction of the M16 into the US military inventory in the 1960s and they are clearly not the weapons of forty years ago. These enhancements have improved functioning, reliability, maintenance and versatility for the individual Soldier and Marine throughout the years.

Currently, there is a government funded operational evaluation being conducted for SOCOM by Colt and UCT Defense for greaseless operating parts on the M4 to improve maintenance, functioning and the wear of select parts of the weapon.

In closing, at the 2006 NDIA Conference and at the Infantry War Fighting Conference sponsored by the Chief of Infantry and Commanding General United States Army Infantry Center & School, Fort Benning, Georgia, the M4 Carbine was listed by the Commanding General and included in his brief as one of the high lighted success stories in combat operations in Iraq and Afghanistan.

Marine Corps Maj. Gen. James R. Battaglini (ret.)

Chief Operating Officer

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West Hartford, CT May 20, 2005 – Colt Defense LLC, a designer, developer and manufacturer of small arms for miltary and law enforcement agencies, announced today the completion of its acquisition of the Logistics & Defense Division, Diemaco, from Héroux-Devtek Inc. (TSX: HRX). The Diemaco business will now be operated as Colt Canada Corporation, a wholly owned subsidiary of Colt.

Colt Canada, based in Kitchener, Ontario, Canada, is a defense contractor that supplies small arms to military and law enforcement agencies. Since 1976, Diemaco has served as Canada’s Small Arms Center for Excellence.

Colt Canada continues as Canada’s sole contractor for the manufacture of C7 and C8 rifles and carbines under license from Colt. These weapons are versions of M16 and M4 weapons that use technical data owned by Colt. Weapons manufactured by Colt Canada supply military troops of NATO countries as well as Canadian Forces and the Royal Canadian Mounted Police.

Colt produces the M16 rifle, M4 carbine, M203 grenade launcher and other weapons at its Connecticut-based ISO 9001-2000 factory. The Colt Canada ISO 9001-2000 facility employs 100 workers in a world class manufacturing facility located about one hour west of Toronto.

Profiles

Colt Defense LLC is a designer, developer and manufacturer of small arms for military and law enforcement agencies. Colt is the owner of technical data packages for the M16 and M4 families of weapons. Colt is a privately held company.

Héroux-Devtek Inc., a Canadian company, specializes in the design, development, manufacture and repair of aerospace and industrial products. The Company's head office is located in Longueuil, Québec. Héroux-Devtek operates eight business units grouped under three divisions: the Landing Gear Division, the Aero structure Division, the Gas Turbine Components Division and the Logistics and Defense Division. 75% of the Company's sales are outside Canada, mainly in the United States. Héroux-Devtek’s shares trade on the Toronto Stock Exchange under the symbol HRX.

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Contact: Carlton Chen  

(860) 244-1315 (office)

cchen@colt.com (e-mail)

www.colt.com

West Hartford, February 10, 2005 – Colt Defense LLC, a leading American defense contractor of small arms, announced today the execution of an agreement with Héroux-Devtek Inc. (TSX: HRX) for the acquisition of its Logistics & Defense Division, Diemaco, based in Kitchener, Ontario, Canada.

Diemaco is a world-class defense manufacturer with a reputation for providing innovative, state-of-the-art small arms solutions, for military and law enforcement forces. Designated by Canada as its Small Arms Center for Excellence, Diemaco has been the Canadian contractor for the Government of Canada since 1984 to manufacture the equivalent of M16 and M4 weapons under license from Colt. Weapons manufactured by Diemaco have been supplied to the military troops of NATO countries as well as to Canadian armed forces.

"The acquisition of Diemaco is part of a larger strategy at Colt Defense to strengthen its leadership in the area of transformational technologies that support the forward and rapid deployment of modern professional armies," said Colt Defense President and CEO LtGen Wm. M. Keys, USMC (ret.). "In addition to expanding our market share in Europe, the acquisition of Diemaco and its engineering expertise will enhance Colt Defense’s research and development capabilities," he added. Diemaco will be operated as Colt Canada Corporation, a wholly owned subsidiary of Colt Defense.

"We are looking forward to creating even stronger ties with the Canadian Government through Colt Canada," said Colt Defense Executive Vice President and COO MajGen James R. Battaglini, USMC (ret.). "The acquisition will complement our West Hartford operations and help us to secure major contracts abroad as well as enable us to further enhance our present weapons platform and develop significant new Colt Defense products," he added. Colt Defense produces the M16 rifle, M4 carbine, M203 grenade launcher and other weapons at its Connecticut-based ISO 9001-2000 factory. The Diemaco facility employs 100 workers in a world class manufacturing facility located in Kitchener, Ontario.

The transaction is subject to customary regulatory and governmental approvals.

Colt Defense LLC is an American company whose origins trace back to the company founded by Samuel Colt, an American icon, in 1836. Colt Defense products command a global presence as the weapons of choice for military and law enforcement use in over 80 countries worldwide. Colt is the owner of the technical data packages for the M16 and M4 families of weapons. The M4 carbine is the mainstay of the U.S. Forces, particularly in Iraq. Over 7 million M16 and M4 weapons have been installed all over the world. Colt Defense is a privately held company.

Héroux-Devtek Inc., a Canadian company, specializes in the design, development, manufacture and repair of aerospace and industrial products. The Company's head office is located in Longueuil, Québec. Héroux-Devtek operates nine business units grouped under four divisions: the Landing Gear Division, the Aerostructure Division, the Gas Turbine Components Division and the Logistics and Defence Division. 75% of the Company's sales are outside Canada, mainly in the United States. Héroux-Devtek’s shares trade on the Toronto Stock Exchange under the symbol HRX. 

April 21, 2004, Hartford, Connecticut – Colt Defense LLC today filed suit against Bushmaster Firearms, Inc. and Heckler & Koch and demanded that the two companies end their illegal marketing campaigns with respect to the Colt^® M4^® carbine.

In its lawsuit filed in the U.S. District Court for the Eastern District of Virginia, Colt cited acts of trademark infringement, trade dress infringement, trademark dilution, false designation of origin, false advertising, patent infringement, unfair competition, and deceptive trade practices. Colt is seeking injunctive relief and damages against the two companies.

Colt is the leading supplier of military and law enforcement weaponry and related products to the U.S. Government and many American allies. It holds a sole source contract to exclusively supply the M4 carbine to all branches of the U.S. military. Only Colt may manufacture an authentic M4 carbine; those made by others are imitations.

The M4 carbine evolved from the most combat-proven family of weapons, the Colt-developed M16 rifle. To develop this carbine, Colt at its own expense integrated 40 years of combat experience of the M16 rifle with advances in technology. Colt then offered this carbine to the U.S. Army that subjected it to a multi-year certification process before finally accepting it for use by American troops.

"This case is about the systematic efforts of Bushmaster and Heckler & Koch to confront us, not as competitors on a level playing field, but with unlawful marketing practices that misrepresent the nature of their products and disparage the products of Colt Defense," said Colt’s President and Chief Executive Officer, Lieutenant General William M. Keys, USMC (retired).

"Colt’s products have been the mainstay of the U.S. military for over 100 years, and have played a significant role in both World Wars and the Vietnamese conflict. Today, our products are in the hands of our elite forces in Iraq. Our reputation was earned the hard way, on the battlefield. And it is our battle-tested reputation that these defendants are attempting to exploit by selling M4 knockoffs," said General Keys.

According to the complaint, both Bushmaster and Heckler & Koch are intentionally and illegally blurring the distinction between their products and the products manufactured by Colt, particularly the M4 carbine. Both Bushmaster and Heckler & Koch have developed copycat versions of the M4 to profit from Colt’s good name and reputation.

In a transparent attempt to mislead potential customers into believing that they are buying "American Made" products, Heckler & Koch, whose principal place of business is Oberndorf, Germany, falsely states that it will manufacture firearms in a plant in Georgia that does not yet exist. In fact, Heckler & Koch’s manufacturing and engineering is performed outside the country, according to the complaint.

The complaint alleges that Bushmaster, which has no legal right or authority to sell to the U.S. military, has intentionally and illegally incorporated the look and feel of the Colt M4 into its "M4 type" carbine. By duplicating the appearance of a real M4 weapon, and employing calculated marketing that blurs the distinction between Colt’s products and their own, Bushmaster deceptively markets its "M4 type" carbine to the civilian market and foreign governments, hoping that consumers will confuse the goodwill associated with the Colt brand with Bushmaster, according to the complaint.

The complaint also alleges that Bushmaster has plagiarized Colt’s M16 and M4 parts numbers. By doing so, Bushmaster intentionally misrepresents to its non-military customers that Bushmaster parts are interchangeable with Colt’s AR-15^®, M16™ and M4^® products – a misrepresentation that could have serious safety repercussions.

Colt Defense LLC is an American company with a direct lineage to the original company founded by Samuel Colt in 1836. Colt Defense products command a global presence as the weapons of choice in over 50 countries. Located in West Hartford, Connecticut, its manufacturing facilities are ISO 9001-2000 certified and quality-certified by the U.S. Department of Defense. The Colt name is famous in the United States and throughout the world, and has long been associated in the minds of military, civilian and law enforcement customers with high quality and innovation. Many of Colt’s products have achieved legendary status. Over 9,000,000 authentic M16 rifles and M4 carbines have been installed for military and law enforcement use around the world.