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BAE SYSTEMS RECEIVES CONTRACT MODIFICATION TO PROVIDE HOWITZER SPARES PACKAGES FOR EGYPT

12-21-2006

YORK, Pa. – BAE Systems has been awarded a $16.3 million contract modification from the U.S. Army TACOM Life Cycle Management Command to provide spare parts for M109A5 self-propelled howitzers for the Egyptian Land Forces.

“This contract is an extension of a long partnership between BAE Systems and the Egyptian Land Forces,” said Mike Evans, M109 Systems program manager. “It gives us the opportunity to continue providing our expertise and product, maintain our skilled work force, and ultimately reduce costs for all of our customers.”

Work on the contract will be performed at BAE Systems’ facility in York, Pennsylvania. Deliveries are scheduled to begin immediately and continue through December 2007.

The contract, originally awarded in 2002 to refurbish Egyptian M109A2/3 and M109A5 vehicles, is part of a Foreign Military Sales (FMS) agreement between the U.S. government and Egypt and runs through 2007. The total value of the contract now stands at $124.8 million.

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 88,000 employees worldwide, had 2005 sales that exceeded $22 billion, excluding the group's former interest in Airbus.

For further information, please contact:
Herb Muktarian, BAE Systems
Tel: 717-225-8004 Pgr: 800-797-1593
Herb.Muktarian@baesystems.com


Shannon Smith, BAE Systems
Tel: 703-907-8257 Cell: 703-967-3854
shannon.n.smith@baesystems.com