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MINNEAPOLIS - BAE Systems has received an $18.3 million contract modification to produce MK 14 Mod 2 Tomahawk canisters compatible with the U.S. Navy's new Tactical Tomahawk Missile for firing from the Vertical Launching Systems (VLS) MK 41.

The contract modification, from the Naval Sea Systems Command, is for the renewal and upgrade of 145 existing canisters and the manufacturing of 97 new MK 14 canisters at BAE Systems' facility in Aberdeen, South Dakota. Work is scheduled to begin immediately with delivery of the first renewed MK 14 canister during the summer of 2008.

"This contract modification will bring the total of renewed and upgraded canisters under this contract to 1036 MK 14 canisters and the production of 97 MK 14 Mod 2 canisters," said Gary Tatge, program manager of the MK 41 VLS and canisters.

The VLS MK 41 missile canister provides a sealed storage, transportation and launch container for the wide range of system-compatible weapons. The VLS MK 41 canister envelope is common to system launcher module standards, while internal mechanical and electrical components are tailored to specific missile shapes and interface requirements. BAE Systems is the U.S. Navy's exclusive design agent and worldwide supplier of VLS MK 41 launch canisters.

About BAE Systems
BAE Systems is a global 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 2006 sales that exceeded $25 billion.

For further information, please contact:
Jeff Van Keuren, BAE Systems
Tel: +1 763-572-7615 Mobile: +1 612-618-7210

Susan Lenover, BAE Systems
Tel:+1 703-907-8259 Mobile:+1 703-850-1621

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