Dear Mr. Bouchard:

The Office of the Prime Minister forwarded to me a copy of your e-mail of March 20, 2008 regarding Alliant Techsystems’ (ATK) proposed acquisition of the Information Systems and Geospatial Businesses of MacDonald, Dettwiler and Associates Ltd. (MDA). I regret the delay in replying to you.

As you may know, ATK filed an application under the Investment Canada Act (ICA) for the review of its above-mentioned acquisition proposal.

Under the ICA, foreign investment proposals that are subject to review must obtain my approval before the investor can implement the transaction. My approval is given only where I am satisfied that the investment is likely to be of net benefit to Canada.

The factors considered as part of the net benefit test are listed in section 20 of the ICA. They include the effect of the investment on the level and nature of economic activity in Canada; the degree and significance of participation by Canadians in the Canadian business; the effect of the investment on productivity, industrial efficiency, technological development, product innovation and product variety in Canada; the effect of the investment on competition within any industry or industries in Canada; the compatibility of the investment with national industrial, economic and cultural policies; and the contribution of the investment to Canada’s ability to compete in world markets.

On May 8, 2008, I wrote to ATK confirming that I was not satisfied that its application to acquire control of MDA is likely to be of net benefit to Canada. As a result, ATK cannot implement its acquisition of MDA.

I reached my decision after an extensive and rigorous review process during which I consulted with the relevant provinces and federal departments.

Once again, thank you for sharing your views on this matter.

Sincerely,

The Honourable Jim Prentice, P.C., Q.C., M.P.