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BAE SYSTEMS RECEIVES NEW $375.2 MILLION U.S. ARMY CONTRACT FOR BRADLEY VEHICLES LONG LEAD MATERIALS

02 Jan 2008 | Ref. 002/2008

YORK, Pennsylvania – BAE Systems has been awarded a new $375.2 million contract for the procurement of long-lead materials in preparation for an anticipated contract to reset an additional 639 Bradley Combat System vehicles.

Under this newest order from the U.S. Army’s TACOM Life Cycle Management Command, the company will secure key long-lead materials and parts for an anticipated contract to reset 451 Bradley A3 vehicles and 188 Bradley Operation Desert Storm vehicles. An earlier delivery order, worth $135.2 million, was awarded Nov. 29 and a subsequent modification for $240 million awarded Dec. 21 last year.

This is the largest long-lead delivery order BAE Systems has received to date to reset Bradley Combat Systems vehicles. When combined with the $709.4 million contract awarded last month, for the reset of 1,042 Bradley Combat Systems, these newest orders bring the total value of the contracts BAE Systems has been awarded on Bradley work to $4.7 billion for Fiscal Years 2005 - 2008.

“Our focus is on the Soldier. These long-lead awards will help us ensure that we that we get the vehicles through the reset process and back into the hands of Soldiers as quickly as possible,” said Andy Hove, Vice President of Combat Systems Programs for BAE Systems.

Work on this contract will be performed at BAE Systems’ facilities in York and Fayette County, Pennsylvania and through the company’s partnership with Red River Army Depot in Texarkana, Texas.

Bradley Combat Systems continue to provide outstanding survivability, mobility and combat capability to U.S. soldiers in close-combat urban situations as well as in open-combat. The Bradley fulfills five critical mission roles - infantry fighting vehicle, cavalry fighting vehicle, fire support vehicle, battle command vehicle and engineer squad vehicle - for the Army's Heavy Brigade Combat Teams (HBCTs).

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:
Garrie Dornan, BAE Systems
Tel: +1 717 225 8004 Mobile: +1 717 818 7401
garrie.dornan@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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