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FLIR Systems Announces $6.3 Million ContractFrom SAIC For US Air Force

Date: June 23, 2004

FLIR To Provide Star SAFIRE II Units For US Air Force Space Command

PORTLAND, Ore.–(BUSINESS WIRE)–June 16, 2004–FLIR Systems, Inc. (Nasdaq:FLIR) announced today that it has been awarded a $6.3 million firm fixed-price contract from Science Applications International Corporation (SAIC) for the United States Air Force for the delivery of Star SAFIRE(TM) II airborne thermal imaging systems to the Air Force Space Command. The units are to be installed on their UH-1N helicopters for use on ICBM security missions. Deliveries are expected to begin in the third quarter of this year and be completed within 12 months.

“This order represents another important contract for our Star SAFIRE(TM) product line. We are pleased the Air Force and SAIC have chosen the proven Star II system for use on such an important mission,” commented Earl R. Lewis, Chairman, President and CEO of FLIR Systems, Inc.

Forward-Looking Statements

The statements in this release regarding FLIR’s expectation of the value of the US Air Force contract and the time period within which these revenues will be generated are forward-looking statements. Such statements are based on current expectations, estimates and projections about FLIR’s business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including the following: the ability of FLIR to deliver units ordered in a timely manner and consistent with contract requirements, changes in demand for FLIR’s products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, FLIR’s continuing compliance with US export control laws and regulations, constraints on supplies of critical components, excess or shortage of production capacity, actual purchases under agreements, the continuing eligibility of FLIR to act as a federal contractor, the amount and availability of appropriated government procurement funds and other risks discussed from time to time in the Company’s Securities and Exchange Commission filings and reports. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.

About FLIR Systems

FLIR Systems, Inc. is a world leader in the design, manufacture and marketing of thermal imaging and stabilized camera systems for a wide variety of thermography and imaging applications including condition monitoring, research and development, manufacturing process control, airborne observation and broadcast, search and rescue, drug interdiction, surveillance and reconnaissance, navigation safety, border and maritime patrol, environmental monitoring and ground-based security. Visit the company’s web site at www.FLIR.com.

For More Information:

Tony Trunzo
FLIR Systems, Inc.
503-684-3731

Visit the FLIR Systems web site.

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