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BAE Systems awarded $58 million contract modification to refurbish additional M109 vehicles

30 Nov 2005

BAE Systems has received a $58 million contract modification from the U.S. Armys Tank-automotive and Armaments Command (TACOM) to refurbish 164 M109A5 vehicles and deliver 200 sets of Basic Issue Items for Egypt.

Under the contract, BAE Systems will complete comprehensive refurbishments on self-propelled howitzers purchased from U.S. Army long-supply stocks. The refurbishment includes the overhaul of a significant number of assemblies to like new condition including the engine, transmission and main armament. The resulting vehicles will be ready for immediate fielding with a significantly enhanced service life expectancy.

The award of this follow-on work shows the confidence that the leadership of the Egyptian Army has in our Government/Industry team, said Adam Zarfoss, BAE Systems M109 program manager. Our established processes and procedures, enhanced through Lean manufacturing initiatives, allow us to deliver the highest quality systems at great value to our customers.

Work on the contract will be conducted at BAE Systems facilities in York and Fayette County, Pa., with deliveries running from July 2006 through December 2007.

The contract follows the current 201 vehicle M109A2/A3 howitzer refurbishment program.

About BAE SYSTEMS

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, combat vehicles, 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 and 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 employs over 90,000 people and generates annual sales of approximately 14.8 billion through its wholly owned and joint-venture operations.

For further information, please contact:

Doug Coffey, BAE Systems
Tel: +1 703 312 6121
doug.coffey@baesystems.com

Herb Muktarian, BAE Systems
Tel: +1 717 225 8004 Pgr: +1 800 797 1593
herb.muktarian@baesystems.com



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