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EADS and THALES AVIONICS sign an MoU in Sourcing Area

28 February 2002

Singapore, February 27, 2002 - At Asian Aerospace 2002 in Singapore, EADS European Aeronautic Defence and Space Company and THALES AVIONICS have signed a Memorandum of Understanding (MoU) in the sourcing area. This agreement is part of EADS global Sourcing Strategy launched across the company.

The signed MoU paves the way for enhanced performances in the relationship between THALES AVIONICS as a supplier and EADS as a customer to better meet the end market requirements. The resulting improvements are cornerstones for the implementation of a "Competitive Partnership" between EADS and THALES AVIONICS in the sourcing area.

The EADS Sourcing Strategy aim is to develop a long term relationship with suppliers which are willing to develop sustained, excellent performances to better meet the markets needs. Tuned to the particular end markets needs, it applies to every Business Unit of EADS. This Sourcing Strategy permits the implementation of deepened privileged relationship between EADS and its best suppliers, called "Competitive Partnership".

Press contacts:
Matt Pothecary - Tel: + 33(0) 1 53 77 86 26
Thales Avionics - Florence Fayolle - Tel: + 33 (0) 1 43 29 88 31

EADS Sourcing Strategy comprises major aspects such as supplier evaluation and proactive development of performances and business along procurement policy targets and principles.

"We value Thales as one of our major suppliers with potential and interest for performance enhancements and extended business potential. One of the axioms of our global sourcing strategy is to encourage long-term cooperation between EADS business units and their best-in-class suppliers and to create a "Competitive Partnership", a new type of relation. This excellence-and-reward type of approach will be worked out with a number of committed strategic suppliers to enable our end-customers and shareholders to benefit from best-in-class performances", said Hans-Erich Mundt, Senior Vice President Corporate Sourcing at EADS.

"As one of the largest supplier of EADS, Airbus and Eurocopter in particular, THALES AVIONICS is proud to join this program. This is a new challenge for us, which encompasses all our activities : avionics, in-flight systems, and power generation.

This agreement towards "Competitive Partnership" is completely consistent with our program of continual improvement called TOP AVIONICS, launched two years ago. This initiative, based on putting customer satisfaction first, consists of building new relationships with all our customers. We are totally committed to make this type of relation between suppliers and customers a success" said Francois Quentin, Senior Vice President Business Group Avionics of Thales.

Press Contacts:
Thales - Florence Fayolle - Tel: +33 1 4629 8831
EADS - Gregor v. Kursell - Mobile: +49 1777 253027