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EADS NORTH AMERICA OPENS A400M MILITARY TRANSPORT PROGRAM TO PARTICIPATION OF U.S. SUPPLIERS

Procurement briefing in Washington, D.C. provides guidelines on A400M competitive process for American contractors

Washington D.C., 23 October 2003

The A400M multi-role military transport aircraft being developed by EADS has been opened to competitive-based participation by U.S. industry - creating significant new transatlantic business opportunities for American hardware, equipment and systems suppliers.

To facilitate this process, EADS North America, the U.S. holding company of EADS, the world's second largest aerospace and defense company, hosted an A400M U.S. Suppliers Conference in Washington, D.C. this week. The conference attracted managers from more than 30 U.S. companies interested in competing for A400M contracts. Also participating were representatives from the U.S. Departments of State, Commerce and Defense, agencies involved in approving American technology and hardware for export. The A400M is an EADS-lead program. The prime contractor is AIRBUS Military.

"EADS is firmly committed to involving significant U.S. supplier participation in the A400M program," said Ralph Crosby, EADS North America Chairman and CEO. "This is part of our support for a transatlantic relationship that will result in a strong and viable U.S.-European defense industrial base. Just as AIRBUS depends on U.S. companies to make its passenger airliners the world's most competitive civil aircraft, the A400M will benefit from use of American content for a world-class military airlifter."

EADS North America is working closely with the U.S. government to facilitate the export clearance process for U.S.-produced equipment, hardware and systems on the A400M.

This was underscored by the participation at this week's A400M procurement briefing of top managers from the Department of State, Department of Commerce and Defense Department.

To further facilitate the export approval process, EADS North America is considering proposing a new licensing procedure called "Major Program Authorization" (MPA). This long-term approval approach, which would be negotiated by EADS North America with the Department of State, would allow for the licensing of exports on a consolidated and expedited basis - reducing administrative burdens on both industry and government.

The A400M is a four-engine multi-role aircraft designed for all military transport needs, ranging from strategic and tactical airlift to peacekeeping and humanitarian support. The program was launched last May with firm orders for a total of 180 aircraft, which are to be delivered to Germany, France, Spain, the United Kingdom, Turkey, Belgium and Luxembourg, beginning in 2009. With additional export opportunities taken into account, the total A400M sales potential is estimated at nearly 400 transports over the next 20 years. The process of selecting suppliers for systems, equipment and airframe structures on the A400M is now underway, with decisions to be made through the end of 2004.

No fixed target has been set for the percentage of U.S. content on the A400M; this will be determined by a number of factors that include the competitiveness of suppliers' bids and the quality of their products. The A400M's procurement process will be similar to that used on AIRBUS airliners such as the A380, A340, A330 and A320 aircraft family - for which U.S. companies usually win 40 percent or more of the procurement by contract value.

Strategic workshare for the A400M will be managed by the program's major European industrial participants: AIRBUS France, AIRBUS Germany, AIRBUS, U.K., EADS CASA, FLABEL and TAI. Major aircraft components will be integrated in the United Kingdom, France, Germany, Spain, Belgium and Turkey, and then shipped to the final assembly line at Seville, Spain.

About EADS North America

With headquarters in Washington, D.C., EADS North America is the holding company for the North American activities of EADS - the second largest aerospace and defense company in the world. As a leader in all sectors of defense and homeland security, EADS North America and its parent company, EADS, contribute more than $6 billion to the U.S. economy annually, and support 120,000 American jobs through its network of suppliers and services. With operating units and investments in 10 states and the District of Columbia, EADS North America offers a broad array of advanced solutions to its customers in the commercial, homeland security, aerospace and defense markets. www.eadsnorthamerica.com

About EADS

EADS is the second largest aerospace and defense company in the world with revenues of 29.9 billion Euros in 2002, and a workforce of more than 100,000. It is a systems integrator and as such is one of the few companies worldwide capable of combining various products and technologies to form complete systems and offering the associated services. The EADS Group includes the aircraft manufacturer AIRBUS, the world's largest helicopter supplier, Eurocopter and the joint venture MBDA, the second largest missile producer in the global market. EADS is the major partner in the Eurofighter consortium, is the prime contractor for the Ariane launcher, develops the A400M military transport aircraft and is the largest industrial partner for the European satellite navigation system, Galileo. EADS has more than 70 sites in France, Germany, Great Britain and Spain, and is active in many regions worldwide, including the United States, Russia and Asia. www.eads.net

Contact

Diane Murphy, VP Communications
EADS North America
Tel: (202) 776-0988
diane.murphy@eadsnorthamerica.com