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BAE SYSTEMS RECEIVES $128.6 MILLION CONTRACT FOR MOLLE SYSTEMS AND COMPONENTS FROM DEFENSE LOGISTICS AGENCY

19 Jun 2008 | Ref. 191/2008

PHOENIX, Arizona - BAE Systems has been awarded a $128.6 million contract from the Defense Logistics Agency for production of the Modular Lightweight Load Carrying Equipment (MOLLE) system. The new contract includes two one-year options, bringing the potential contract award to $374 million.

The MOLLE system is the primary load carrying equipment for the U.S. Army. Each system set incorporates 37 components and is comprised of vests, pockets, backpacks, and hydration systems. The MOLLE system enables soldiers to carry necessary equipment critical to their mission.

“With this new contract the Defense Logistics Agency has ensured that the MOLLE system and its individual components are sustained at the high levels required to meet the needs of our armed forces,” said Sean Martin, director, business development of Individual Equipment for BAE Systems. “This procurement of the MOLLE system is critical to maintaining solder effectiveness.”

The contract is expected to create an estimated 100 jobs to the BAE Systems workforce. Production will be completed at facilities located in Arizona, Kentucky, Pennsylvania, and Tennessee. Base year deliveries are scheduled within one year of the award date.

BAE Systems employs nearly 2,000 employees at its Arizona, Kentucky, Pennsylvania, and Tennessee facilities. The Individual Equipment business unit is a world leader in the development and manufacture of individual tactical systems for militaries and homeland security forces. Operating 12 factories with over 2,300 employees around the U.S., Individual Equipment manufactures head-to-toe integrated survivability products including body armor, vests, hydration systems, assault packs, helmets, flotation collars, parachutes, air crew ensembles and other protective products.

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 97,500 employees worldwide, BAE Systems' sales exceeded £15.7 billion (US $31.4 billion) in 2007.

For further information, please contact:
Heather Russell, BAE Systems
Tel: +1 602 643 7260 Mobile: +1 602 373 8625
heather.russell@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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