CALGARY, Alberta -- NovAtel Inc. has signed a long-term Component Supply Agreement with AGCO Corporation to deliver a new precision positioning subsystem for the Auto-Guide Satellite Navigation System -- AGCO's advanced drive-by-wire machine guidance system.

The next-generation AutoGuide is being introduced by AGCO in both Europe and North America on selected Fendt, Massey-Fergusson and Challenger series tractors. This supply agreement builds upon previous commercial arrangements between the two companies resulting in further penetration of NovAtel technology within the AGCO family of brands and products.

Auto-Guide is AGCO's hands-free, auto-steering agriculture solution that utilizes satellite navigation for a steer-assist feature that guides agriculture machines via a pre-determined Global Positioning System path. In addition to fuel and economic efficiency, Auto-Guide reduces operator fatigue, lessens machine wear and contributes to environmental savings.

NovAtel has begun delivery of a new class of integrated positioning subsystem which was specified by AGCO for this next-generation Auto-Guide system. The subsystem can be configured to support a range of positioning requirements from L1 WAAS through two centimeter precision Real Time Kinematic with support for OmniStar XP/HP satellite-based corrections, inertial augmentation and guidance software.

This is all available in a rugged, environmentally sealed enclosure with a single connector interface that can be easily roof-mounted on a growing number of AGCO agricultural machines.

"AGCO developed this system using a partnership of key suppliers," said Kevin Cobb, product manager for the AutoGuide system. "We believe that the integration of best-of-class suppliers of GPS technology, inertial sensors and guidance software makes AutoGuide a highly competitive solution for the precision farming market. AGCO chose NovAtel to develop this new product due to its industry leading price/performance and technical capability. We are very pleased to be working directly with NovAtel as our GPS and future GNSS technology supplier."

"AGCO is an industry leader, and we are extremely pleased to be the direct supplier of a precise positioning product to their many brands. We were selected by AGCO to develop a highly integrated, robust hardware product that takes advantage of NovAtel's innovative, precise positioning components," said Jon Ladd, president and CEO of NovAtel. "This new supply agreement with AGCO forms a cornerstone in our efforts to grow our sales into the precision agriculture market. This agreement further supports the commitment by both NovAtel and AGCO to continue to work together to provide the best solutions for AGCO's precision farming customers."

"Although the precision agriculture market is a relatively small portion of our total business, the AGCO supply agreement is expected to contribute to NovAtel's growth in the precision agriculture sector in 2007," concluded Ladd.

Founded in 1990, AGCO Corporation is a leading global manufacturer of agricultural equipment and related replacement parts. The company is headquartered in Duluth, Ga., and in 2005, had net sales of $5.4 billion.

NovAtel designs, markets and sells high-precision GPS and other positioning components and sub-systems used in a wide variety of commercial applications principally in the aviation, geomatics (surveying and mapping), mining, precision agriculture, marine and defence industries. NovAtel's solutions combine hardware, such as receivers and antennas, with software to enable its customers to fully integrate the company's high-precision GPS technology into their respective products and systems. NovAtel, an ISO 9001-certified company, is focused on supplying core high-precision positioning technology to OEMs and system integrators who build systems for various end market applications.

SOURCE: NovAtel Inc. via Market Wire.