BAE Systems Awarded Overhaul of Military Sealift Command Ship.

NORFOLK, Va. -- BAE Systems has been awarded a contract by the U.S. Navy's Military Sealift Command to overhaul and drydock the USNS Leroy Grumman (T-AO 195). The cumulative value of the contract could reach nearly $8 million if all options are exercised. The work will take place at BAE Systems Ship Repair in Norfolk and is expected to be completed by March 2007.

As part of the 60-day overhaul package, BAE Systems' work will focus on inspection of oil tanks and spaces, engine room repairs and refurbishment, underwater hull cleaning and preservation, as well as installation and replacement of various devices aboard the vessel.

"Though our primary customer remains the U.S. Navy Surface Force, we are pleased to continue maintaining the vital Military Sealift Command vessels that sustain these Navy ships during their key missions around the globe," said Al Krekich, president of BAE Systems Ship Repair. In addition to its surface combatant work in 2006, the company provided major repair and modernization services to 11 Military Sealift Command ships, as well as other government agency and commercial vessels, across its four major yards in Norfolk, San Diego, San Francisco and Hawaii.

The USNS Leroy Grumman, part of Military Sealift Command's Naval Fleet Auxiliary Force, is a Henry J. Kaiser Class Oiler that provides underway replenishment of fuel to Navy combat ships at sea, enabling them to remain deployed for extended periods of time.

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 advances electronics, information technology solutions, and customer support services. BAE Systems, with more than 86,000 employees worldwide, had 2005 sales that exceeded $28 billion.