BAE SYSTEMS To Produce Inertial Measurement Units for U.S. Navy Rolling Airframe Missile.

Business Editors

JOHNSON CITY, N.Y.--(BUSINESS WIRE)--May 29, 2003

Raytheon Missile Systems has awarded BAE SYSTEMS a production start-up contract for silicon inertial measurement units that will be used on the U.S. Navy's Rolling Airframe Missile (RAM). BAE SYSTEMS Inertial Products in Plymouth, U.K., will produce SiIMUv inertial measurement units using the company's Micro-machined Electro-Mechanical System (MEMS) technology.

The SiIMUv provides inertial data for the missile guidance autopilot. Replacing the conventional spinning-wheel gyro in the missile with the solid-state silicon sensor provides a major improvement in life-cycle cost, due to its low initial manufacturing cost and long storage life. Use of silicon technology also reduces size, weight, and power consumption.

SiIMUv is an all-silicon MEMS inertial measurement unit developed to provide robust, low) cost guidance solutions for current and future weapon systems. SiIMUv is in production and has been selected for other U.S. and international missile and projectile programs: the U.S. Navy Extended Range Guided Munition, U.S. Army Advanced Precision Kill Weapon System, the U.K. and Swedish armies, next-generation shoulder-launched anti-tank missile (MBT-LAW), and the MBDA Missile Systems Vertical Launch Seawolf system in service with the U.K. Royal Navy.

RAM is a lightweight, high-firepower anti-ship weapon system jointly developed by the U.S. and German governments. The system is currently installed, or planned for installation, on 83 U.S. Navy and 28 German Navy ships. The U.S. Navy expects to procure approximately 1,000 RAM Block 1 missiles.

BAE SYSTEMS in Plymouth recently received a Queen's Award for Enterprise for its world-leading silicon gyroscope technology. The recognition was awarded for the SiVSG gyroscope, the world's first micro-machined silicon ring gyroscope, which is used to detect rotational motion in both commercial and defense applications.

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, radar, avionics, communications, electronics, guided weapon systems, and a range of other defense products. BAE SYSTEMS is dedicated to making the intelligent connections needed to deliver innovative solutions.

BAE SYSTEMS North America is a high-technology U.S. company employing more than 25,000 people who live and work in some 30 states, the District of Columbia, and the United Kingdom. The company is dedicated to solving its customers, needs with highly innovative and leading edge solutions across the defense electronics, systems, information technology, and services arenas.

BAE SYSTEMS Inertial Products is a unit of the company's U.S.-based Platform Solutions Sector, part of BAE SYSTEMS North America. The Platform Solutions Sector is a leading global supplier of integrated electronic control products, subsystems, and man-machine interface systems for air, space, sea, and ground vehicles.

The business develops and produces electronic vehicle management systems, electronic engine controls, cockpit and helmet displays, and inertial systems for a variety of platforms including fixed- and rotary-wing aircraft, missiles, ground vehicles, ships, and space launch vehicles. It also produces HybriDrive(TM) propulsion systems for intra-city transit buses and other medium and large vehicles.

Headquartered in Johnson City, New York, it employs approximately 6,400 people at 12 facilities in the United States and the United Kingdom.