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SAN DIEGO - BAE Systems has been awarded a multi-ship, multi-option (MSMO) contract to maintain all Destroyer (DDG-51) Class ships homeported or visiting San Diego. The five-year contract includes execution planning, drydocking and pierside maintenance, repair and alteration work for seventeen ships, if all options are exercised.

The first major repair availability on the contract will begin in June 2007, with work on the USS Howard (DDG-83). Already performing on a DDG Post Shakedown Availability Continuous Maintenance Contract, BAE Systems Ship Repair will now be performing repair work on all DDG class vessels in San Diego, Norfolk and Hawaii.

"The award of the DDG contract to San Diego Ship Repair is a testament to BAE Systems' position as the leading maintainer of U.S. Navy Surface Combatant Ships across the United States," said Al Krekich, president of BAE Systems Ship Repair. "With this award in San Diego, we are now prime contractor on eight Navy MSMO contracts, across our San Diego, Norfolk and Hawaii shipyards."

The new award is a follow-on to San Diego's existing Destroyer MSMO contract. All work will be performed at BAE Systems' San Diego Ship Repair facility and will be completed by 2011.

BAE Systems Ship Repair is the United States' leading non-nuclear ship repair, modernization and conversion company - focused on dry dock and ship repair services for the U.S. Navy, other defense agencies and commercial customers. It has major operations in Norfolk, San Diego, San Francisco and Hawaii.

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
John Kowalczyk, BAE Systems
Tel:+1 757-494-2977 Mobile:+1 757-717-8391

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

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