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BAE SYSTEMS SIGNS MEMORANDUM OF UNDERSTANDING WITH ASMAR FOR CHILEAN FRIGATE SUPPORT

25 Oct 2006

Paris, France - BAE Systems and the Asmar Ship building and Ship repair company have signed an MoU to cooperate on ship support for the Chilean Navy. Under the terms of the agreement the two companies will work in partnership to support the three former Royal Navy frigates once they enter service, as well as the Type 22 frigate, the Almirante Williams, currently operated by the Chilean Navy.

The MoU, signed during the Euronaval international naval and maritime defence exhibition, follows on from a UK/Chile government-to-government agreement to transfer three UK Royal Navy ships to the Chilean Navy. In September 2005 BAE Systems was awarded the contract to prepare and transfer the Type 23 frigates, the first of which, HMS Norfolk, is scheduled to arrive in Valparaiso Naval Base in June 2007. The second and third ships, HMS Marlborough and HMS Grafton, will follow, with the last delivery due in 2008.

Commenting on the agreement, BAE Systems regional managing director for Europe and the Americas, Bob Keen, said: “This is an important development in our ongoing relationship with the Chilean Navy and the country’s maritime industry. Combining the skills and technical knowledge of BAE Systems and Asmar will provide a step change in support for the Chilean Navy, ensuring the ships offer the highest availability rates to the Navy.”

Nigel Billingham, managing director CS&S Naval, added: “The support of military assets is key to ensuring they meet the operational requirements of the customer. This is the first of a number of agreements that will provide the Chilean Navy with the necessary support to meet its national and international naval objectives.”

The three ships will replace the BAE Systems manufactured Leander class ships, which currently form an important part of the current Chilean fleet. BAE Systems Customer Solutions and Support (CS&S) is working in partnership with the UK Defence Logistics Organisation and UK industry to prepare the ships for transfer and train the crews.

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. BAE Systems, with more than 100,000 employees worldwide, had 2005 sales that exceeded $28 billion.


For further information please contact:
Barney O’Kelly, BAE Systems
Tel: +44 (0) 1252 384717
Mob: +44 (0) 7803 667434
barney.okelly@baesystems.com

Scott Darroch, BAE Systems
Tel: +44 (0) 1252 384094
Mob: +44 (0) 7801 717 673
scott.darroch@baesystems.com

Issued by:
BAE Systems, Farnborough, Hampshire GU14 6YU, UK
Tel: +44 (0) 1252 384710
Fax: +44 (0) 1252 383947



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