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Intelligence

BAE SYSTEMS North America Completes Acquisition Of Alphatech

05 Nov 2004

Acquisition expands company's capabilities in image and signal processing, intelligence fusion, and information-based national security systems

BAE Systems North America today completed its acquisition of ALPHATECH, Inc., for a cash consideration of $88.4 million. ALPHATECH, a premier provider of advanced information technologies, complements BAE Systems North Americas significant presence in the system and subsystem levels in the C4ISR market, and enhances the companys position as a leading integrator of information-based systems, emphasising horizontal integration and fusion.

ALPHATECH, which specialises in image and signal processing, multi-intelligence fusion and intelligent systems for the Department of Defense and other government intelligence agencies, becomes BAE Systems Advanced Information Technologies (AIT), operating within the companys National Security Solutions business unit.

Were excited about the addition of AIT to the North America business, said Bill Ballhaus, president of BAE Systems National Security Solutions. AIT will continue to serve the DoD research laboratories as well as other customers, and by working together with other organisations within the company, will facilitate the rapid transition of leading-edge technologies and deployment of transformational capabilities to our customers.

BAE Systems is a full-spectrum, knowledge-based solutions provider focused on the expanding national security community, specifically the intelligence and defence markets. AIT will have a major role developing and integrating systems for these critical customers. Were proud to have them on the team. Ballhaus added.

Based in Burlington, Mass., and employing 322 people, AIT had recorded sales of $51 million for the year ending December 2003. Revenues for the six months ending June 2004 were $32 million. Founded in 1979 by faculty of the Massachusetts Institute of Technology (MIT), more than 80 percent of AITs employees hold advanced degrees.

BAE Systems North America is a leading electronics, information systems and technology services company, and one of the largest providers of systems and services for the U.S. Department of Defense. BAE Systems North America currently employs approximately 30,000 people across some 30 states, generating sales of more than $5 billion. The company designs, develops, manufactures and supports a wide range of advanced aerospace products, electronic systems and information technology for the U.S. Government and commercial customers.

About BAE SYSTEMS

BAE Systems is an international company engaged in the development, delivery, and support of advanced defence and aerospace systems in the air, on land, at sea, and in space. The company designs, manufactures, and supports military aircraft, surface ships, submarines, fighting vehicles, radar, avionics, communications, electronics, and guided weapon systems. It is a pioneer in technology with a heritage stretching back hundreds of years and is at the forefront of innovation, working to develop the next generation of intelligent defence systems.

BAE Systems has major operations across five continents and customers in some 130 countries. The company employs more than 90,000 people and generates annual sales of approximately 12 billion through its wholly owned and joint-venture operations.

For further information, please contact:

John Measell, BAE Systems North America
Tel: +1 703 907 8261 Mobile: +1 703 405 5010



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