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BAE SYSTEMS campaigns for Australia's largest commercial support contract

18 Jul 2002

BAE Systems is touring northern Australia this month representing NexGen Logistics (NexGen) to communicate the team's approach and capability in support of the Australian Defence Force's warehousing, maintenance and distribution needs.

The NexGen team, a provider of performance-based logistic support, comprises BAE Systems Customer Solutions & Support business, Honeywell, Caterpillar Logistics Services, Inc (Cat Logistics) and K&S Group.

The team is competing for the Australian Department of Defence (DoD) Defence Integrated Distribution System (DIDS) project estimated to be worth more than A$1 billion over the first 10 years of operation.

The contract will involve warehousing, distribution and maintenance activities across Australia through the management of the logistics pipeline.

"This capability will be a key part of the supply chain needed to deliver Australia's future defence integrated support & service capabilities," said Mr Harry Bradford, Chairman, NexGen Logistics.

BAE Systems is conducting information sessions at Australian sites likely to be affected by the outsourcing decision.

"We want to demonstrate our commitment to ensuring minimum disruption to existing staff, communicate our plans to those most involved and demonstrate the professional way in which we do business," said Mr Bradford.

"NexGen has presented an innovative, value based solution for the Australian requirement that reflects the Government's drive for improving cost effectiveness and the quality of services," he said.

"We're confident that NexGen's solution will deliver an outstanding logistics support system to meet the Australian Defence Force's needs. With our US, European and Australian partners, we are offering world's best practice in logistics and supply management through the NexGen team."

In addition, the UK Ministry of Defence has recently selected BAE Systems Customer Solutions & Support business to support the definition of a joint logistics operation to serve the UK armed forces and manage the storage and distribution of the UK Defence Logistics Organisation's stock valued at over 12.5 billion. The aim is to provide cost effective, integrated service support across air, land and sea.

About BAE SYSTEMS:

BAE Systems is a systems company, innovating for a safer world. BAE Systems employs nearly 100,000 people including Joint Ventures, and has annual sales of around 13 billion. The company offers a global capability in air, sea, land and space with a world-class prime contracting ability supported by a range of key skills. BAE Systems designs, manufactures and supports military aircraft, surface ships, submarines, space systems, radar, avionics, communications, electronics, guided weapon systems and a range of other defence products. BAE Systems is dedicated to making the intelligent connections needed to deliver innovative solutions.

In Australia, the company employs 2,500 people, supports customers at more than 50 locations across the country and has its centre of operations in Adelaide. BAE Systems Australia is structured into three businesses and is a leader in engineering and systems integration and is a major supplier of support services, electronics and software.

About Honeywell:

Honeywell is a US$24-billion diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; specialty chemicals; fibers; plastics; and electronic and advanced materials. Honeywell employs approximately 115,000 people in 95 countries and is traded on the New York Stock Exchange under the symbol HON, as well as on the London, Chicago and Pacific stock exchanges. It is one of the 30 stocks that make up the Dow Jones Industrial Average and is also a component of the Standard & Poor's 500 Index. Additional information on the company is available on the Internet at www.honeywell.com.

About Caterpillar Logistics Services, Inc.

Caterpillar Logistics Services, Inc. (Cat Logistics), a wholly owned subsidiary of Caterpillar Inc., builds on the global distribution experience of its parent company to help other companies lower distribution costs while improving customer service and brand loyalty. Cat Logistics is a technology-based company providing customized solutions that transform distribution to a source of competitive advantage. Our heritage as the world-class global manufacturer of products, enables us to provide integrated solutions from managing transportation, inventory, and distribution centers to sophisticated forecasting, information management, and network consulting services.

For further information please contact:
Kathryn Andrews, BAE Systems Australia
Tel: +61 (02) 6229 1600 Mobile: +61 418 838 632



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