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BAE SYSTEMS AWARDED $36 MILLION U.S. NAVY CONTRACT FOR 25MM GUN SYSTEMS TO PROTECT SHIPS

10-29-2007

MINNEAPOLIS - BAE Systems received a $36.3 million contract from the U.S. Naval Surface Warfare Center for the production and delivery of 62 MK 38 MOD 2 Machine Gun Systems (MGS). The gun systems will be delivered between July 2008 and June 2009.

The MK 38 fulfills the critical role of ship self-protection by providing naval vessels with a highly lethal, last layer of defense. The MK 38 is a 25mm, stabilized remote-controlled gun system that has an effective range of more than 2,000 meters. It is highly autonomous, proven against multiple surface threats and is a critical asset in our global war on terrorism.

"The performance of the MK 38 brings significantly higher reliability and improved operational availability to the most important team - our Navy, its ships and sailors who depend on the MK 38s for protection," said Dennis Morris, BAE Systems' president of Armament Systems.

Including this latest order, BAE Systems has been contracted to deliver a total of 150 MK 38 MOD 2 Machine Gun Systems for installation aboard various U.S. Navy surface combatants and amphibious ships. The proposed program of record calls for a total of 243 systems through FY 2015.

The MK 38 is currently in service on eleven ships and will be installed on selected U.S. Navy ships including CG, DDG, LHA, LHD, LSD, PC, FFG and LPD class ships, as well as several Coast Guard vessels. The main weapon on the MK 38 MOD 2 is the M242 25mm Chain Gun, a proven NATO-standard cannon with selectable rates of fire. The MK 38 fires all USN-approved 25mm ammunition at 180 rounds per minute, with 168 rounds on-mount. Additionally, the systems' four-axis stabilized electro-optical sensor provides round-the-clock surveillance capability day and night, enhancing a ship's overall mission effectiveness.

"This system gives our sailors a decisive edge when they're dealing with small boat threats or other close-encounter dangers," said Morris.

BAE Systems is teamed with RAFAEL Armament Development Authority, Ltd., for the development and production of the MK 38 MOD 2 MGS. The systems will be assembled and tested at BAE Systems' Louisville, Kentucky facility.

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.

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


Doug Coffey, BAE Systems
Tel: +1 703 312 6121 Mobile: +1 703 399 1216
doug.coffey@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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