BAE SYSTEMS Selected for U.S. Army's Future Combat System Ground and Airborne Platform Communication Systems.

Business Editors

WAYNE, N.J.--(BUSINESS WIRE)--July 18, 2003

BAE SYSTEMS has been selected by the Army Lead System Integrator (LSI) team of The Boeing Company (NYSE:BA) and Science Applications International Corporation (SAIC) to enter negotiations toward a contract to develop and integrate the joint interoperable Ground and Airborne Platform Communication Systems (GPCS and APCS), two critical elements of the U.S. Army's Future Combat System (FCS) network-centric warfighting capabilities.

Under these efforts, BAE SYSTEMS will serve as the GPCS and APCS integrator to develop specifications and provide prototype communications packages that will support the various communications configurations of selected FCS ground and airborne platforms.

Total program value to BAE SYSTEMS, including options, has the potential to exceed $2 billion over the life of the program.

"We're very pleased to be selected by Boeing. We stand committed to meeting the challenge of developing systems to support the U.S. Army's transformation in communication and information dominance," said Jeff Markel, Communication, Navigation, Identification and Reconnaissance (CNIR) business unit president.

BAE SYSTEMS CNIR will lead a team of world class partners, which includes BAE SYSTEMS Information and Electronic Warfare Systems (IEWS), Nashua, New Hampshire, in this effort. The team will select technologies and develop specifications to support key FCS communications performance characteristics such as survivability, interoperability, mobile secure communications, and apply them on manned and unmanned ground platforms, as well as on unmanned aerial platforms.

CNIR, in its role of integrating communication systems onto FCS platforms, is applying decades of experience in data networking radio solutions. The unit will leverage its major complementary programs, such as Joint Tactical Radio System (JTRS) Cluster 1 and Warfighter Information Network-Tactical (WIN-T), to develop the FCS Networked Communications System with its objective goal of joint interoperability. The GPCS and APCS programs are essential to enabling FCS to achieve its network-centric warfighting capabilities.

IEWS will leverage its system integrator experiences from the Air Force Compass Call and F-22 electronic warfare programs. As prime contractor for Defense Advanced Research Projects Agency's (DARPA) Advanced Concept Technology Demonstration (ACTD) Adaptive Joint C4ISR Node program, IEWS brings domain knowledge expertise that is critical to the success of the APCS and GPCS programs.

About Future Combat Systems

The Future Combat Systems (FCS) program includes building a family of advanced, networked air- and ground-based maneuver, maneuver support, and sustainment systems that will include manned and unmanned platforms.

FCS will implement, via a Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) architecture, advanced concepts in warfighting by including networked communications, network operations, networked sensors, battle command systems, advanced training systems, integrating both manned and unmanned reconnaissance and surveillance capabilities. This new network will enable improved situational understanding and operations, synchronizing these communications in ways that up to now were not achievable. In its end state, FCS will operate as an overarching system that will network existing systems, systems already under development, and new systems to be developed. The network will enable improved Intelligence/Surveillance/Reconnaissance (ISR), battle command, real time sensor-to-shooter linkages, and increase synergy between echelons and within small units.

About BAE SYSTEMS:

BAE SYSTEMS is a systems company, innovating for a safer world. BAE SYSTEMS employs nearly 100,000 people including Joint Ventures, and has annual sales of around $18 billion. The company offers a global capability in air, sea, land and space with a world-class prime contracting ability supported by a range of key skills. BAE SYSTEMS designs, manufactures and supports military aircraft, surface ships, submarines, space systems, radar, avionics, communications, electronics, guided weapon systems and a range of other defense products.

BAE SYSTEMS North America is a high-technology U.S. company employing more than 22,000 Americans who live and work in 30 states and Washington, D.C. -- dedicated to solving our customers needs with both highly innovative and leading-edge solutions across the defense electronics, systems, information technology and services arenas.

BAE SYSTEMS Communication, Navigation, Identification and Reconnaissance, headquartered in Wayne, New Jersey, is a team of more than 2,200 professionals unifying the force with technically superior solutions that transform the armed forces' communication, situational awareness, mobility, and mission effectiveness.

BAE SYSTEMS Information & Electronic Warfare Systems, headquartered in Nashua, New Hampshire, employs 5,400 people at 10 major facilities in eight states. The business unit is a major producer of aircraft self-protection systems and tactical surveillance and intelligence systems for all branches of the armed forces. Other major business areas include microwave, mission and space electronics; infrared imaging; and automated mission planning systems.