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New EADS Defence & Security Systems Division fully operational as of 1 July 2003

Amsterdam, 26 May 2003

* Complete "Sensor-to-Shooter Capability" through combination of systems, platforms, sensors and missiles under one roof
* Division expected to annually increase revenues by more than 10 percent
* EADS CEOs Philippe Camus and Rainer Hertrich: "This is an important strategic move to make EADS an even stronger force in the global defence market. EADS Defence & Security Systems will build critical mass in an integral business focus of EADS."

The new EADS Defence & Security Systems Division will start its operational business as of 1 July 2003. The Board of Directors of EADS, the second-largest global aerospace and defence company, has approved the new organizational structure of the enlarged Defence Division. With the merger of its defence electronics, military aircraft and telecommunications activities, EADS is strengthening its defence business to better meet the needs of customers requiring integrated defence and security technology.

Key elements of the new organization are the integration of the military fighter aircraft activities and the merger of the currently existing Business Units EADS Telecom and the systems part of EADS Systems & Defence Electronics. The new Business Unit EADS Defence & Communication Systems will be the EADS system house for the whole C4ISR chain, naval and air defence systems, manned and unmanned airborne mission systems and secure communication systems. It will create a competence centre for systems design and new capacities for concept development, simulation and experimentation to develop new and innovative system solutions.

The new Business Unit EADS Defence Electronics is the hub for the sensor, electronics and mission avionics business in EADS. It provides mission critical elements to the airborne systems and air defence offerings of EADS.

EADS Military Aircraft as the national leader in all military aircraft activities, in particular the Eurofighter and other combat and trainer aircraft programmes in Germany and Spain will benefit from the optimised integration and interoperability through the grouping under the same roof together with Electronics, Missiles (MBDA/LFK) and the "System House". The new organisation will also have a strong impact on the development of future Eurofighter enhancements and the perspectives for major new programmes like the Unmanned Combat Aerial Vehicle (UCAV) and dedicated studies in an advanced netcentric operations environment.

EADS Services, within a Division having a broader portfolio, will gain further strength to develop and control fast-growing business opportunities in the market of outsourced defence services.

"This is an important strategic move to make EADS an even stronger force in the global defence market. EADS Defence & Security Systems will build critical mass in an integral business focus of EADS. This strategic decision to consolidate complimentary business fields that are working on integrated systems and those that design and build platforms allows EADS to become a driver of future technological developments in a changing defence business," said EADS CEOs Philippe Camus and Rainer Hertrich.

Tom Enders (44) has been appointed as CEO of the new Division. With nearly 24,000 employees in nine countries, the division, headquartered in Munich, will produce revenues of more than € 5 bn in 2003, mostly in its home markets Germany, France, Britain and Spain. EADS maintains additional defence business in Airbus, Aeronautics, Military Transport Aircraft and Space Divisions. The consolidated EADS defence revenues in 2003 are expected to be well above € 6 bn.

"We are focused on supporting the transformation of our military customers by strengthening our capabilities for the development of innovative and complex concepts such as network centric operations and for large system integration," Tom Enders said. "We are improving cross-business unit cooperation and we will leverage efficiency synergies within the division. Not only does this benefit our customers, but it should allow the new Division to be also a leaner and more profitable part of EADS."

The new Division has the following structure:

The Heads of the Business Units are:
MBDA: Marwan Lahoud (37)
LFK: Werner Kaltenegger (52)
Defence Electronics: Johann Heitzmann (49)
EADS Military Aircraft Aloysius Rauen (46)
Defence & Communication Systems: Stefan Zoller (45)
Services: Jacques Vannier (55)

Patrick Jourdan (55), previously CEO EADS Telecom, has been appointed as Chief Operating Officer in the Defence & Communication Systems Business Unit.

Two integrated functions directly reporting to Tom Enders have been established to ensure integration and coordination both internally and in close dialogue with the customer side:

* "Concepts and customer relations", coordinating marketing activities and exploring new systems concepts for home and export markets.
* "Information architecture" harmonizing business processes, communication and IT infrastructure to improve EADS's ability to respond to network centric requirements on the customer side.

"We expect our revenues to grow annually by more than 10 percent," Tom Enders said. "We have identified some very promising efficiency improvement areas. We will optimise our market position, eliminate overlaps, bundle specific functions and accelerate our decision processes. We can also reduce our cost base. And we will strengthen our customer relations through senior management interfaces."

Board approval has been given, taking the legal provisions regarding information and consultation of the workers' representatives into account. Tom Enders is assigned to develop a detailed plan on the new organisation, which - starting in June - will be put before the workers´ representatives for consultation within the scope of legal requirements.

About EADS:

EADS is a global aerospace and defence company and is the world's second largest in terms of revenues with € 29.9 billion in 2002. EADS has a workforce of more than 100,000 and is a market leader in defence technology, commercial aircraft, helicopters, space, military transport and combat aircraft, as well as related services. It's family of leading brands includes the commercial aircraft manufacturer Airbus, the world's largest helicopter manufacturer Eurocopter, the space company Astrium and MBDA, the world's second largest missile company. EADS is the biggest partner in the Eurofighter consortium and heads the A400M military transport aircraft programme. The company has over 70 sites in Germany, France, Great Britain and Spain. It is active in many regions worldwide, including the U.S., Russia and Asia.

Note to the editors:
A press conference with Tom Enders will be held at the Le Bourget Airshow on Tuesday, 17th June, 11.00 am at the EADS Stand.
Contacts:

Dr. Rainer Ohler
089/607-34235

Miguel Sanchez
+34 91 585 77 89

Roland Sanguinetti
+33 1 42 24 24 26