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BAE SYSTEMS WINS THIRD MILITARY SEALIFT COMMAND CONTRACT

07-17-2007

NORFOLK, Virginia - BAE Systems has been awarded a firm-fixed-price contract for the regular overhaul and drydocking of the Military Sealift Command (MSC) fleet replenishment oiler USNS Kanawha.

The award is the third Military Sealift Fleet Support Command contract the company has won since May and has an initial value of $5.9 million, with the potential to reach over $7.1 million if all options are exercised. All work will be performed at BAE Systems Ship Repair in Norfolk, Virginia.

Work on the Kanawha is expected to begin in July and finish in October 2007. BAE Systems will drydock the ship and conduct: hull preservation; non-skid deck repairs; sea valve overhauls; inspection of cargo and ballast tanks; main engine repairs; various machinery, electrical and piping repairs; inspection and repairs of communication and navigation equipment; US Coast Guard inspections; and underway replenishment equipment repairs.

"This Kanawha win is significant for us," said Al Krekich, president, BAE Systems Ship Repair. "Winning three of these highly-competitive MSC jobs in close order is a testament to our ability to perform and demonstrates our customer's confidence in our services that enable these critical logistics ships to conduct their important missions around the world."

The USNS Kanawha is a HENRY J. KAISER class underway replenishment oiler that provides fuel to Navy combat ships and jet fuel for aircraft aboard carriers at sea. The government owned and operated vessel is over 677 feet long and has a crew of 81 civilians and 23 military members.

In addition to the USNS Kanawha, BAE Systems is now completing a 50-day work package on the USNS Brittin, MSC's Bob Hope Class Large, Medium-Speed Roll-on/Roll-off (LMSR) Ship, which arrived in the yard on June 1. The company will also start a 60-day work package on MSC's fast support ship USNS Arctic (T-AOE 8) in July.

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
john.kowalczyk@baesystems.com


Susan Lenover, BAE Systems
Tel:+1 703-907-8259 Mobile:+1 703-850-1621
susan.lenover@baesystems.com