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BAE SYSTEMS Australia To Supply Ground Support Systems To Boeing For Turkish Peace Eagle Program

14 May 2004

BAE Systems Australia, as a subcontractor to The Boeing Company [NYSE: BA], has reached agreement for a contract worth over $A20 million to adapt BAE Systems Airborne Early Warning & Control (AEW&C) Mission Support Segment, Operational Mission Simulator and AEW&C Support Facility initially developed under Australias Project Wedgetail into a standard system for the Turkish Peace Eagle Program.

Mr Jim McDowell, Chief Executive Officer of BAE Systems Australia said, "This is a great example of the benefits of getting into the supply chain of a major project at such an early stage.

Peace Eagle is the first of what will be many opportunities for BAE Systems Australia in support of Boeing to export from Australia very high end systems and services in the areas of Electronic Warfare, Ground Support and Simulation.

We are also a member of the Boeing team bidding into the Republic of Korea for an AEW&C capability, and this demonstrates the growth potential of this area for BAE Systems Australia.

The Boeing Company is working with their Turkish in-country supplier HAVELSAN to deliver the Support Segments for the Peace Eagle Program. BAE Systems Australia will provide software, training and support to the Havelsan team to allow customisation of the Support Segments to the requirements of the Turkish Air Force.

About the sub-systems:


*Mission Support Segment (MSS)
The MSS gathers the tasking and planning data required for an AEW&C mission. It supports flight and mission planning for all of the aircraft sub-systems, enabling the crew to prepare and carry out the operation. Post-mission functions include mission debriefings, analysis and replay of mission data and production of mission reports.

*Operational Mission Simulator (OMS)
The BAE Systems OMS provides realistic training for the AEW&C aircraft mission crew by simulating the mission systems and aircraft environment. The OMS allows instructors to monitor and coach individual students, without compromising the fidelity of the aircraft environment and reducing the airframe hours required for training mission crew. The OMS facilitates training in rarely occurring or potentially dangerous situations, helping the crew to develop and maintain their capabilities so that they are always in a high state of readiness. The OMS provides a significant subset of the mission crews ground training, and will be complemented with Boeings mission crew training program.

*AEWC Support Facility (ASF)
The ASF provides the capability to maintain, modify and evolve the AEW&C System. The ASF consist of a Configuration Management and Engineering Development Environment, to maintain all of the AEW&C data and software libraries, and to generate updates to the AEW&C software. A System Verification and Validation Environment that includes a mock-up of the AEW&C aircraft is to be used to test and validate changes to the AEW&C System.

About BAE SYSTEMS CS&S (Customer Solutions & Support):

CS&S employs around 15,000 people at over 40 locations and provides through-life support and services across the air, sea and land sectors. It carries out upgrades, maintenance, repair and overhaul of military systems, aircraft and naval vessels. CS&S supports military customers' capability in areas such as training; facilities management; spares and repairs; technical information services; manpower services; and supply chain and logistics management.

CS&S manages support and services programmes worldwide including a broad range of contracts in Australia and the key Saudi Arabian Al Yamamah programme. CS&S is also working closely with the UK Ministry Of Defence to reduce the cost of support, upgrade and training - without compromising front-line capability.

BAE Systems Australia is part of the CS&S Group and employs approximately 2,600 people, supports customers at more than 50 locations across the country and has its centre of operations in Adelaide, South Australia. BAE Systems Australia combines key skills in engineering and systems integration and is a leading supplier of electronic warfare, battlespace communications, military air support, software and support services to the Australian Defence Force.

About Boeing

A unit of The Boeing Company, Integrated Defense Systems is one the world's largest space and defence businesses. Headquartered in St. Louis, Boeing Integrated Defence Systems is a $25 billion business. It provides systems solutions to its global military, government and commercial customers. It is a leading provider of intelligence, surveillance and reconnaissance; the world's largest military aircraft manufacturer; the world's largest satellite manufacturer and a leading provider of space-based communications; the primary systems integrator for U.S. missile defence; NASA's largest contractor; and a global leader in launch services.


BAE SYSTEMS is an international company engaged in the development, delivery and support of advanced defence and aerospace systems in the air, on land, at sea and in space. The company designs, manufactures and supports military aircraft, surface ships, submarines, radar, avionics, communications, electronics and guided weapon systems. It is a pioneer in technology with a heritage stretching back hundreds of years. It is at the forefront of innovation, working to develop the next generation of intelligent defence systems. BAE SYSTEMS has major operations across five continents and customers in some 130 countries. The company has more than 90,000 people and generates annual sales of approximately 12 billion through its wholly-owned and joint venture operations.

BAE SYSTEMS, innovating for a safer world.

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