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BAE SYSTEMS AWARDED $18.6 MILLION CONTRACT MODIFICATION TO CONDUCT HOME STATION RESET OF M113 VEHICLES

17 Oct 2006

YORK, Pa. — BAE Systems has received an $18.6 million contract modification to reset M113 vehicles at various military installations throughout the U.S. The contract, from the U.S. Army Tank-Automotive and Armaments Command Life Cycle Management Command, covers the Home Station Reset of M113 vehicles at Fort Hood, Texas and Fort Stewart, Ga. Work will begin immediately and continue through December 2007.

"BAE Systems stands ready to support our customers wherever vehicles need to be reset," said Ann Hoholick, director of M113/Marine Corps programs for BAE Systems. "We're committed to returning these vehicles as quickly as possible to the soldiers that need them."

The modification, when combined with the initial contract awarded in June for $10.8 million, brings the total contract value to $29.5 million.

Under Home Station Reset, BAE Systems personnel work on a variety of military bases and facilities to provide an efficient, cost-effective and practical solution to return reset vehicles to soldiers.

The M113A3 is the largest family of armored tracked vehicles in the world, including more than 80,000 vehicles worldwide and more than 40 variants. As one of the most widely used combat vehicles in the world, the M113 family of vehicle plays a role in the militaries of at least 44 countries. BAE Systems has been providing survivability enhancements with ongoing improvements in power-train technology, armor developments, soldier protection and suspension enhancements.

About BAE Systems
BAE Systems is the premier trans-Atlantic defense and aerospace company delivering a full range of products and services for air, land and naval forces, as well as advanced electronics, information technology solutions and customer support services. With more than 86,000 employees worldwide, BAE Systems sales exceeded $28 billion in 2005.

For further information, please contact:
Herb Muktarian, BAE Systems
Tel: 717-225-8004
herb.muktarian@baesystems.com

Doug Coffey, BAE Systems
Tel: 703-612-6121
doug.coffey@baesystems.com



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