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EADS North America Receives Contract to Re-engine and Upgrade U.S. Coast Guard's HH-65 Helicopter Fleet

American Eurocopter Establishes Second Line to Expedite Ongoing Work

Grand Prairie, TX; Columbus, MS, 25 October 2005

EADS North America business unit, American Eurocopter, has received a subcontract from Lockheed Martin to re-engine and upgrade the U.S. Coast Guard’s HH-65 Dolphin helicopter fleet under the Integrated Deepwater System program.

Under terms of the contract, American Eurocopter will manage the conversion of 11 HH-65B helicopters to the upgraded HH-65C version at the company's Columbus, Miss., facility, with the work planned for completion in late 2006. The contract also contains an option for upgrading six additional HH-65s.

This work will assist the Coast Guard's ongoing conversion of its entire HH-65 fleet to the improved-performance HH-65C model, which is already underway at the Coast Guard Aircraft and Supply Center in Elizabeth City, N.C. Opening the second re-engining line at American Eurocopter's Columbus facility will provide additional capacity to accelerate the rate at which HH-65Cs can be upgraded.

"American Eurocopter is ready to support the Coast Guard and Lockheed Martin in this important program, and we have mobilized the resources to meet the demanding scheduling requirements of the program," said American Eurocopter President Marc Paganini.

The HH-65C conversion involves the use of new Arriel 2C2 turboshaft engines that offer increased power and fully digital controls. These modernized helicopters will better fulfill the Coast Guard's traditional maritime surveillance and search-and-rescue duties, while meeting its new responsibilities for national defense and homeland security. American Eurocopter is providing the re-engining kits that are used for the conversion of all 96 HH-65s in the Coast Guard fleet, while Turbomeca USA is providing the Arriel 2C2 engines.

Coast Guard HH-65s played a key role in the rescue operations after Hurricane Katrina, with the increased-performance HH-65Cs becoming a helicopter of choice by crews in the recovery of victims along the Gulf Coast. A total of 25 HH-65 (22 HH-65Bs and three HH-65Cs) flew approximately 1,480 hours of operational missions after the hurricane's passage, rescuing 4,400 people.

About EADS North America

EADS North America is the North American operations of EADS, the second largest aerospace and defense company in the world. As a leader in all sectors of defense and homeland security, EADS North America and its parent company, EADS, contribute over $6 billion to the U.S. economy annually and support more than 100,000 American jobs through its network of suppliers and services. With 10 operating companies located in 28 cities and 15 states, EADS North America offers a broad array of advanced solutions to its customers in the commercial, homeland security, aerospace and defense markets.

American Eurocopter is a subcontractor to Lockheed Martin, a partner in Integrated Coast Guard Systems (ICGS). ICGS is a joint venture between Lockheed Martin (NYSE: LMT) and Northrop Grumman (NYSE: NOC) and was awarded the Deepwater contract in June 2002 by the Coast Guard.

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