BAE SYSTEMS to Protect Army Aircraft; Receives Additional Funding.

NASHUA, N.H. -- BAE Systems has received an additional funding increment of $95.6 million from the U.S. Army for its Common Missile Warning System (CMWS) to protect Army fixed- and rotary-wing aircraft from heat-seeking missiles.

BAE Systems received a five-year indefinite-delivery/indefinite-quantity contract in May 2006. The contract, which gives the Army flexibility to order at various times any number of systems, has a ceiling of $1.4 billion. To date, BAE Systems has delivered more than 600 CMWS systems to equip Army aircraft supporting the Global War on Terrorism.

Dr. Conrad Struckman, BAE Systems CMWS program director, said, "This additional funding will allow BAE Systems to continue its most important mission to protect those who protect us. CMWS is now combat proven and has been credited with saving lives."

BAE Systems production of CMWS is more than a year ahead of schedule and is flying on multiple Army and allied helicopters and fixed-wing aircraft. CMWS is credited with saving multiple aircraft and crews from man-portable air defense missiles.

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 86,000 employees worldwide, had 2005 sales that exceeded $28 billion.