Military

BAE SYSTEMS AWARDED TWO BRADLEY RESET CONTRACTS TOTALING $412 MILLION

01-22-2007

YORK, Pennsylvania — BAE Systems has received two contracts supporting the reset of Bradley Combat Systems, totaling $412 million, from the U.S. Army TACOM Life Cycle Management Command.

The awards announced last week combined with the $1.16 billion contract for the remanufacture and upgrade of 610 Bradley Combat Systems from the U.S. Army awarded in November brings the total value of the contracts BAE Systems has been awarded on Bradley work to $3.5 billion for Fiscal Years 2005 - 2007. Approximately 620 Bradley A3 vehicles have been delivered against the Army's requirement for more than 2,000 total Bradley A3s planned for the fleet.

"Bradleys have been critical in enabling our war fighters to successfully complete their missions since the opening days of Operation Iraqi Freedom in March 2003," said Andy Hove, director of Bradley Combat Systems for BAE Systems. "BAE Systems and Red River Army Depot are driven to meet the needs of our soldiers by delivering these critical combat systems as soon as possible."

The first contract, worth $177.7 million, and funded under the Fiscal Year 2007 defense budget, calls for the reset of 262 Bradley Combat Systems returning from Iraq. BAE Systems, working through its Public Private Partnership with Red River Army Depot (RRAD), will reset these vehicles. Initial disassembly and subsystem rebuild will be performed at RRAD, final disassembly and structural modifications will be completed by BAE Systems in Fayette County, Pennsylvania, and final assembly, integration and test will be conducted at the company’s facility in York, Pennsylvania. The value of this award includes previously awarded long-lead funding totaling $48 million. Deliveries are scheduled to begin in December 2007 and continue through July 2008.

Under the second award, funded at $234.2 million through the Fiscal Year 2007 budget, BAE Systems will secure long-lead materials for an anticipated award to reset 303 Bradley A3 vehicles and 173 Bradley Operation Desert Storm vehicles under Fiscal Year 2008 funding. Work on the vehicles would begin in July 2008 and continue through May 2009.

Bradley Combat Systems continue to provide outstanding survivability, mobility and lethality to U.S. soldiers in all types of close-combat urban scenarios and in open-combat, open-terrain scenarios over three completed rotations. The Bradley fulfills five critical mission roles - infantry fighting vehicle, cavalry fighting vehicle, fire support vehicle, battle command vehicle and engineer squad vehicle - for the Army's Heavy Brigade Combat Teams (HBCTs).

The Bradley A3 incorporates the latest enhancements to improve the vehicle's lethality and survivability, including a full fire control solution featuring a hunter / killer configuration with second generation sights. Additionally, the A3 features integrated information technologies with enhanced command and control features, such as color maps and displays, high-density computer memory, increased micro-processing speed and networked communications. These command and control functions are supported by a more accurate navigation and position locating system. All of these features are implemented with a digital architecture and software, which allows modularity and flexibility to support all of the Bradley mission roles in the HBCTs.

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 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: +1 717-225-8004 Pgr: +1 800-797-1593
herb.muktarian@baesystems.com

Shannon Smith, BAE Systems
Tel: +1 703-907-8257 Mobile: +1 703-967-3854
shannon.n.smith@baesystems.com