A Bermuda company has clinched a significant defence contract with the US military, but has signaled an intention to also expand into the commercial field with leading edge technology.

The US Air Force has taken delivery of the first teleconferencing installation of the new digital, Special Services Switching System, S-4 (TM), designed and produced by Intelect Inc., a company wholly-owned by Bermuda holding company, Challenger International Ltd.

Challenger President, Mr. Peter Leighton, said, "The technology was developed specifically for air traffic control and its first major installation was out in the Middle East in something called Peace Shields, which were the communications set up after the Gulf War to ensure radar systems. It was developed specifically for air traffic control in a military environment.

"The other one is installed in Europe as part of the NATO (North Atlantic Treaty Organisation) defence system.

"The significance of this is that, with that same technology, we believe that we can turn to the commercial world. Even though this is a military installation, the purpose to which it is being put is for all intents and purposes a commercial one, in terms of what it is actually going to be doing, which is basically a multi-media teleconferencing switch.

"Our strategy is to take the technology that we have and start to sell it to the commercial world.'' Mr. Leighton, who took over as president in 1989, took the virtually bankrupt company out of the oil business, and turned it around. They bought a firearms company, which they are now selling to its management at a healthy profit.

The Intelect S-4(TM) is located at Wheeler AAF in Hawaii and will function as the teleconferencing hub for the command and control network used to manage communications over a key US Government missile range spanning from the US west coast across the Pacific.

Bloomberg quoted Intelect president and CEO, Mr. Peter Ianace, who said, "Air Force acceptance of this S-4(TM) installation, signals the continued commitment to Intelect technology in mission-critical environments. The S-4(TM)'s distributed architecture, non-blocking engineering, and dual bus structure ensure that our communications systems are always available to users.

"The S-4(TM)'s design flexibility and its ability to create and manage a virtually unlimited number of conferences makes it an ideal product in today's command and control markets. This easily addresses Wheeler's requirements for 192 simultaneous conferences.'' Intelect Inc. is the leading international provider of quality multi-media communication systems focused on delivering integrated voice, data and video solutions for communications-critical applications such as air defence, air traffic control and business communications.

Intelect Inc., headquartered in Richardson, Texas, has installed systems managing commercial and military airspace in more than 30 countries.

Challenger International Ltd., registered in Hamilton, Bermuda, completed its acquisition of Intelect Inc. on June 27. Challenger is changing its primary business activity to expand Intelect's operations and extend its technology and products into commercial markets. Challenger recently reported signing a letter of intent to sell its non-Intelect related operations.