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BAE SYSTEMS signs Wedgetail agreement with boeing

17 May 2001

Ref: 072/2001

BAE Systems Australia has signed an agreement with Boeing as a key in-country partner to supply the Royal Australian Air Force (RAAF) with an Airborne Early Warning and Control (AEW&C) capability.

Under the A$400 million (US$200 million) agreement, BAE Systems Australia has responsibility for development, supply and support of the electronic support function, electronic warfare self protection systems, operational mission simulator, mission support segment and AEW&C support facility.

"This is a significant and demanding project for BAE Systems. The agreement reinforces BAE Systems' position as a leading supplier of electronic warfare and recognises our skills in the areas of integrated software systems," said Mr Jim McDowell, chief executive, BAE Systems Australia.

Boeing was awarded the prime contract for the AEW&C Project by the Australian Government in December 2000. The contract is valued at more than A$2 billion (US$1 billion) and the first two aircraft are expected to be delivered to the Commonwealth in 2006 with a substantial share of the work being undertaken in Australia.

The Boeing-led team, which includes Northrop Grumman's Electronic Sensors and Systems Sector, Boeing Australia Limited and BAE Systems Australia, will provide the Commonwealth with four 737 AEW&C systems, plus options for up to three additional systems.

"The signing of this agreement is a significant milestone for the Wedgetail Program and for the 737 AEW&C product line. The agreement allows us to advance the important BAE Systems activities for electronic warfare subsystems and support segments," said Mr John Sandvig, Boeing Wedgetail programme manager.

BAE Systems Australia's involvement in the project will provide a significant number of high technology jobs to local industry and the capability to evolve, enhance and maintain these systems from within Australia.

"This agreement is important to the future consolidation and growth of BAE Systems Australia," said Mr Alan Wakeham, managing director - Defence Systems Division, BAE Systems Australia. "It provides an important opportunity for our company to strengthen and develop its capabilities and support the Australian Defence Force. In so doing, the project will provide high value added work for years to come."

"Project Wedgetail will therefore attract highly qualified staff from across Australia who are interested in playing an important role in developing a stronger local business technology base."

Issued by Corporate Affairs, BAE Systems Australia.

For further information, please contact:

Susannah Owens,
BAE Systems Australia
Ph: 02 9247 9622
Mob: 0414 463 717

Ken Morton,
The Boeing Company
Ph: 02 9317 4767
Mob: 0438 764 100



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