BAE SYSTEMS Awarded Contracts Worth $1.16 Billion to Remanufacture and Upgrade Bradley Combat Systems Vehicles for the U.S. Army.

YORK, Pa. -- BAE Systems has received contract modifications worth $1.16 billion from the U.S. Army TACOM Life Cycle Management Command to remanufacture and upgrade 610 Bradley Combat Systems and to provide spare components for these systems.

BAE Systems, working through its Public Private Partnership with Red River Army Depot (RRAD), will remanufacture and upgrade 490 Bradley A3 systems and 120 Bradley A2 (ODS) systems under the awards. Initial disassembly and subsystem rebuild will be performed at RRAD, final disassembly and structural modifications will be performed by BAE Systems in Fayette County, Pennsylvania and final assembly, integration and test will be conducted at the BAE Systems facility in York, Pennsylvania.

"Bradleys have been delivering excellent capability to our war fighters since March 2003," said Andy Hove, BAE Systems' director of Bradley Combat Systems. "BAE Systems and RRAD are focused on ensuring these critical combat systems get into soldier's hands as quickly as possible."

Work on the contracts will begin immediately, with deliveries scheduled to begin in April 2008 and run through April 2009.

Bradley Combat Systems continue to provide outstanding survivability, mobility and lethality 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 fighting vehicle, cavalry fighting vehicle, fire support vehicle, battle command vehicle and engineer squad vehicle - for the Army's Heavy Brigade Combat Teams (HBCTs).

Bradley Combat Systems are playing a critical role in the success of the Army's HBCTs during Operation Iraqi Freedom, where operational readiness has exceeded 94 percent in urban and cross-country missions that have covered more than 8 million miles. The C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance) -equipped, network-enabled Bradley Combat Systems feature a proven set of survivability solutions designed to protect soldiers against a wide variety of threats.

BAE Systems has been awarded contracts totalling $501 million under fiscal year 2006 funding for reset and remanufacturing of 545 Bradleys. The current award for 610 Bradleys at $1.16 billion is under fiscal year 2007 funding. Approximately 620 Bradley A3 vehicles have been delivered against the Army's requirement for more than 2,000 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 88,000 employees worldwide, had 2005 sales that exceeded $22 billion, excluding the group's former interest in Airbus.