Quickstep : Signs MOU with DCNS

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ASX/Media Release 6 June 2016

Quickstep signs MoU with DCNS

Sydney, 6 June 2016 - Quickstep Holdings (ASX:QHL), the manufacturer of advanced carbon fibre composites, today announced that it has signed a new Memorandum of Understanding (MoU) with DCNS Group, a French naval shipbuilding company and European leader in naval defence. The MoU is for the companies' joint cooperation in the manufacturing of components and assemblies using advanced composite materials.

DCNS is the largest shipbuilder in France, and was recently selected by the Australian Government as its preferred international partner for the design of twelve submarines for the Royal Australian Navy.

David Marino, CEO and Managing Director of Quickstep said: "The application of Quickstep's carbon fibre composites expertise for the marine defence industry is a natural extension of our technology. We are delighted to commence this partnership with DCNS which is an acknowledged world leader in naval defence systems. The MoU provides opportunities for Quickstep to participate in DCNS's supply chain and for the potential use of our technology in submarine platforms in Australia and overseas."

Sean Costello, Managing Director of DCNS Australia said: "DCNS has commenced building a supply chain in Australia that will support the submarine capability on a sustainable basis. Ultimately this supply chain will comprise several hundred companies across Australia and form the Future Submarine Enterprise.

Use of composite materials is increasing in surface ships and submarines, reflecting reduced material costs and shipbuilders' focus on weight reduction. Quickstep's innovative technologies for the aerospace, defence and automotive sectors are also suitable for naval defence. Its potential participation in the new SEA 100 submarine program complements its involvement in the JSF F-35 Program, the world's largest defence aerospace program. These are both long-term programs which will allow new technologies to be developed.

A Quickstep / DCNS committee will consider the parts and projects most relevant to implementation of Quickstep's technology and during the next twelve months Quickstep expects to develop and manufacture a number of demonstration parts. Testing of Quickstep's process technologies for naval applications may lead to production of components for DCNS' submarine program for Australia and export markets.

Composites provide advantages including high strength for weight, weight reduction, thermal insulation and the absence of magnetic signatures. They are already used in naval and commercial ships for purposes such as superstructures, bulkheads, propellers and interior panels.

-ENDS-

Principal address: 361 Milperra Road Tel: (02) 9774 0300 ASX Code: QHL

Bankstown Airport NSW 2200 Fax: (02) 9771 0256

www.quickstep.com.au Email: info@quickstep.com.au

Background on Quickstep Holdings Limited

Quickstep Holdings Limited (ASX: QHL) is an Australian publicly listed company, at the forefront of advanced composites manufacturing and technology development. Quickstep is the largest independent aerospace-grade advanced composite manufacturer in Australia, partnering with some of the world's largest Aerospace/Defence organisations including: Lockheed Martin, Northrop Grumman, BAE Systems and Airbus.

Quickstep operates from state-of-the-art aerospace manufacturing facilities at Bankstown Airport in Sydney, NSW; a newly established production site for automotive parts manufacturing and R&D/ process development centre in Waurn Ponds, Victoria; and a development and customer support operation in Munich, Germany.

Quickstep is an approved supplier for the international F-35 Lightning II Joint Strike Fighter (JSF) program - the largest military aerospace program in the world, valued in excess of US$300 billion worldwide. The company has also been selected by Lockheed Martin as the sole supplier of composite wing flaps for the C-130J "Super Hercules" military transport aircraft.

Quickstep has developed significant capabilities and expertise in the production of aerospace grade, advanced composite components, using both conventional autoclave-based manufacturing and leading out-of-autoclave production technologies (developed in-house and patented).

Automotive activities include contracts with Ford Australia for a carbon fibre air intake duct and the development and supply of a range of composite parts and assemblies for the Thales Hawkei military vehicle.

For further information: Investors Media

David Marino - Managing Director Ashley Rambukwella

Quickstep Holdings Limited Financial & Corporate Relations

Telephone: +61-2 9774 0300 Telephone: +61 2 8264 1004 / 0407 231 282

E: dmarino@quickstep.com.au E: a.rambukwella@fcr.com.au or:

Visit www.quickstep.com.au

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