Closing of the transaction is anticipated to occur in the next three weeks.

Trimble has entered into a definitive agreement to acquire privately held Applanix Corporation of Ontario, Canada in a stock transaction valued at CA$25 million (approximately US$18.6 million). Applanix is a leading developer of systems that integrate Inertial Navigation System (INS) and Global Positioning System (GPS) technologies. Closing of the transaction, anticipated in the next three weeks, is subject to usual and customary closing conditions.

Trimble expects the Applanix acquisition to extend its technology portfolio and enable increased robustness and capabilities in its future positioning products. An early focus will be in the survey and construction product lines where GPS, augmented with INS technology, offers the potential of improved satellite tracking and faster reacquisition times for precision Real-time Kinematic (RTK) positioning. This is particularly important in cases where GPS satellite signals are obstructed in difficult environments such as high-rise urban or heavily forested areas.

"We are very excited to be joining Trimble," said Blake Reid, president of Applanix Corporation. "Through this marriage, Trimble and Applanix will be able to fully capitalize on the unique advantages offered by integrating GPS with inertial sensors. In addition, Applanix can now extend its technologies and products into new markets while providing substantial future benefits to our customers through enhanced product performance capabilities."

"Applanix is an industry leader in developing integrated inertial/GPS systems for commercial applications. The company has successfully built a strong market and technology position and has demonstrated profitable revenue growth," said Steven W. Berglund, president and chief executive officer of Trimble. "We believe that tightly integrated inertial with GPS is a core technology. Beginning with applications in survey, construction and agriculture, we believe that Applanix will be an integral contributor to future Trimble products."

Applanix has three core business areas. The company develops land-based products for survey and vehicle positioning; marine products for survey and construction; and airborne products that enable trajectory measurements of airborne sensor data for photogrammetry and laser scanning. Applanix's Position and Orientation Systems (POS(TM)) were developed specifically for robust positioning in challenging and dynamic environments. POS integrates precision GPS with advanced inertial technology to provide uninterrupted measurements of the position, roll, pitch and true heading.

Financial Implications

Applanix will operate as a wholly owned subsidiary and Trimble intends to recognize its revenues under the company's Portfolio Technologies business segment. Trimble expects the acquisition to be neutral to earnings in 2003 and accretive in 2004.