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EADS Defence & Security Systems Division optimises its structure

* Concentration of activities into three Business Units
* Integration of central functions at divisional level
* Creation of a central organization for marketing and sales
* "System Design Centre" to be assigned to division level

Munich, 09 February 2006

The EADS Defence & Security Systems (DS) Division has been reorganised in order to further promote integration and increase efficiency. The Division will focus more intensively on its national customers and markets. This is being reflected in the new organisation.

"We need to become more profitable and DS must generate more growth. At the same time, we are confronted with stagnant budgets in EADS’ home markets, and the pressure from competitors in our export markets has risen sharply. In future, we intend to grow in a profitable manner, both organisationally and by actively participating in the consolidation process of our industry. DS will thus be better prepared to make a significant contribution to EADS` results in future", stated Dr. Stefan Zoller, member of the Executive Committee of EADS and CEO of Defence & Security Systems. By relocating the "System Design Centre" to division level, it will be more accessible for all the DS and EADS Business Units.

The organizational structures in the Business Units "Defence and Communications Systems" and " Defence Electronics" are being streamlined. The “Military Aircraft” Business Unit had already considerably expanded its portfolio in 2005 and is now being supplemented by an optimized structure and the new name "Military Air Systems". In the field of missiles, LFK will be integrated into MBDA in which EADS, together with BAE Systems and Finmeccanica, continues to be a shareholder – as also in Eurofighter GmbH.

Additionally, each Business Unit will lead operative parts of the Services business, thus further developing the activities in this area. Additionally, a centre of competence for Services is being created. In this way, the capacities for future cooperative models with the customers will be strengthened.

EADS Defence & Security Systems, with revenues of about € 5,4 billion in 2004 and roughly 23,000 employees across ten nations, forms the defence and security pillar within EADS. It offers integrated systems solutions to the new challenges confronting armed forces and homeland security units. It is active in the areas of military aircraft, missile systems, Intelligence, Surveillance and Reconnaissance (ISR) systems with manned and unmanned aerial vehicles (UAVs), battlefield management systems, defence electronics, sensors and avionics, and related services.

EADS is a global leader in aerospace, defence and related services. In 2004, EADS generated revenues of € 31.8 billion and employed a workforce of about 110,000.

Contacts:
Alexander Reinhardt
Munich
Germany
Tel.: +49 (0) 89 607 34862
mailto: alexander.reinhardt@eads.com

Claire Allanche
Paris
France
Tel.: +33 (0) 1 34 63 77 45
mailto: claire.allanche@eads.com