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BAE SYSTEMS RECEIVES FOLLOW-ON ORDERS WORTH $1.1 BILLION FROM U.S. MARINE CORPS FOR NEW MINE RESISTANT AMBUSH PROTECTED VEHICLES

19 Dec 2007 | Ref. 399/2007

ARLINGTON, Virginia – BAE Systems has received two follow-on delivery orders worth a total of $1.1 billion under the U.S. Marine Corps’ current Mine Resistant Ambush Protected (MRAP) contract for 600 RG33 Category II vehicles and 668 Caiman Category I vehicles. BAE Systems is currently contracted to build three of the five MRAP variants, and is now under contract to deliver 2,126 Category I vehicles and 1,453 Category II vehicles.

This award, when combined with previous contracts, brings the total value of BAE Systems’ MRAP contracts to $2.24 billion.

The RG33 order totals $645 million to produce 600 survivability enhanced-versions of RG33 Category II 6x6 MRAP vehicle, and to provide engineering change proposals and vehicle sustainment Integrated Logistics Support (ILS).

“The enhanced version has markedly improved the RG33 and incorporates the most advanced suite of armor protection giving its crew a decided edge in combat survivability,” said John Swift, BAE Systems’ MRAP program manager. “We are proud to be a part of such a noble effort. Our vehicles save the lives of soldiers and Marines every day.”

The Caiman award, worth $458 million, calls for the delivery of 668 Category I Caiman MRAP vehicles, which are also enhanced to achieve high levels of survivability with enhanced mobility.

"BAE Systems' workforce is very proud to be offered the opportunity to deliver more Caiman to our hardworking Armed Services. This follow-on order demonstrates the effectiveness of the Caiman MRAP, our ability to deliver on our promises and our focus on the benefit to the United States," said Chris Chambers, BAE Systems’ vice president of Medium/Heavy Vehicles.

Production for the RG33 will be performed at BAE Systems facilities in York, Pennsylvania, Aiken, South Carolina, and Sealy, Texas, with assistance from Spartan Motors Chassis’ facility in Charlotte, Michigan, and Demmer Corporation’s facility in Lansing, Michigan. Deliveries are expected to begin in May 2008 and be completed by June 2008.

Production of the Caiman will be performed at BAE Systems facilities in Sealy, Texas and Fairfield, Ohio. Deliveries will commence in May 2008 and are expected to be completed by July 2008.

More than 2,000 BAE Systems employees in the United States and 400 in South Africa are producing vehicles with the support of suppliers in more than 30 states across the United States.

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. With 96,000 employees worldwide, BAE Systems' sales exceeded $27 billion in 2006*.

*On a pro forma basis, assuming BAE Systems had owned Armor Holdings Inc for the whole of 2006

For further information, please contact:
Jessica Pantages, BAE Systems
Tel: +1 703 312 6157 Mobile: +1 703 439-0345
jessica.pantages@baesystems.com

Greg Caires, BAE Systems
Tel: +1 703 907 8261 Mobile:+1 703 967 8630
greg.caires@baesystems.com



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