BAE SYSTEMS Awarded $223.5 Million Contract to Remanufacture and Upgrade Bradley Vehicles.

YORK, Pa. -- BAE Systems has received a $223.5 million contract modification from the U.S. Army TACOM Life Cycle Management Command to remanufacture and upgrade 96 Bradley Combat Systems vehicles.

BAE Systems, in partnership with Red River Army Depot (RRAD), will remanufacture and upgrade 57 Bradley A3 vehicles in infantry and cavalry configurations, 16 Bradley A3 Fire Support Team (BFIST) vehicles and 23 A2 Operation Desert Storm-based M7 BFIST vehicles. Disassembly will be performed at RRAD and BAE Systems in Fayette County, Pa. Final assembly, integration and testing will be conducted at the BAE Systems facility in York, Pa.

"This contract continues our effort to support the effectiveness of the Army's modular HBCTs (Heavy Brigade Combat Teams)," said Andy Hove, director of Bradley Combat Systems for BAE Systems. "Providing our soldiers with the best combat vehicle system in the world will continue to be our objective."

BAE Systems will field the Bradley vehicles directly to the units at their home locations and conduct any necessary training and technical support. Vehicle deliveries under this contract will begin in January 2008 and run through mid-2008.

Bradley Combat Systems vehicles continue to provide outstanding survivability and mobility to U.S. soldiers in all types of close-combat urban scenarios and in open-combat, open-terrain scenarios over three completed rotations. The Bradley fulfills five critical mission roles -- infantry, cavalry, fire support, battle command and engineer squad -- for the Army's HBCTs.

Bradley Combat Systems have played a critical role in the success of the Army's HBCTs that have faced some of the most challenging missions in Iraq since the conflict began in March 2003. During Operation Iraqi Freedom, the Bradley operational readiness rate has exceeded 94 percent in urban and cross-country missions that have covered more than 8 million miles. The Bradley moves with maneuver forces across rough terrain at speeds up to 38 mph, and can negotiate narrow streets and tight corners in urban areas.

The C4ISR-equipped, network-ready Bradley vehicles feature a proven set of armor solutions designed to protect soldiers against a wide variety of threats, and are readily equipped with the Bradley Urban Survivability Kit.

Last year, the Army contracted with BAE Systems to remanufacture and upgrade 450 Bradley A3, 50 A2ODS and 33 BFIST vehicles under fiscal year 2005 funding (June 2005). BAE Systems has now been awarded a total of 501 Bradley vehicles to date under fiscal year 2006 funding totaling $477.9 million. Approximately 595 Bradley A3 vehicles have been delivered against the Army's requirement for 2,545 total Bradley A3s planned for the fleet.

About BAE Systems

BAE Systems is the premier trans-Atlantic 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 more than 100,000 employees worldwide, had 2005 sales that exceeded $28 billion.