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BAE SYSTEMS RECEIVES NAVY BASIC ORDERING AGREEMENT FOR WEAPONS AND SUPPORT SERVICES

08-23-2007

MINNEAPOLIS - BAE Systems has received a Basic Ordering Agreement (BOA) from the U.S. Navy for up to $368 million to build and refurbish naval weapon systems, and provide support services over the next five years. Potential orders received under this BOA are expected later this year and will be carried out by BAE Systems' facilities in Minneapolis and Louisville.

"This agreement will give us the opportunity to continue to serve the U.S. Navy and provide our sailors with critical naval weapon systems and support services," said Dennis Morris, BAE Systems' president of Armament Systems.

The BOA covers a wide range of BAE Systems' programs including the transition of production of the Mk 110 57mm naval gun system; the overhaul, manufacture and upgrade of the Mk 45 5-inch naval gun for the Cruiser Modernization program, the Mk 75 76mm gun mount, the Mk 42 extended range guided missile handling mechanism, the Mk 32 surface vessel torpedo tubes (SVTT), and the Mk 36/53 decoy launcher systems (DLS); the manufacture of gun barrels; the overhaul of turbine pump ejection systems (TPES); and work associated with minor caliber guns.

"This BOA demonstrates to us that our employees have been successful in meeting the customer's needs -- and that's our priority -- delivering solutions on time and on budget," said Morris.

For more information on BAE Systems' naval weapons systems and services visit:
www.baesystemspresskit.com/navalproducts

About BAE Systems
BAE Systems is the premier 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 96,000 employees worldwide, had 2006 sales that exceeded $27 billion on a pro forma basis, assuming BAE Systems had owned Armor Holdings, Inc. for the whole of 2006.

For further information, please contact:
Stephanie Moncada, BAE Systems
Tel: +1 763 572 6591 Mobile: +1 651 983 4057
stephanie.moncada@baesystems.com


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



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