BAE Systems Receives $39.4 Million in Follow-On Orders for MOLLE Systems and Components from Defense Logistics Agency.

PHOENIX -- BAE Systems has received 17 orders valued at $39.4 million from the Defense Logistics Agency for production of seven types of Modular Lightweight Load Carrying Equipment (MOLLE) system sets.

MOLLE is the primary field equipment system for the U.S. Army and each set incorporates 37 components. Primarily comprised of vests, pockets, backpacks, and hydration systems, the MOLLE system enables soldiers to carry equipment and supplies critical to their mission.

"This contract highlights the U.S. Department of Defense's confidence in the quality of our MOLLE products," said Joe Coltman, vice president of Individual Equipment. "We have produced over 1.5 million MOLLE items over the last four years, demonstrating that our equipment is a mainstay on the battlefield with the U.S. Army."

Issued under a $374 million multi-year contract awarded to BAE Systems in June, 2008, these orders bring the total awarded to date to $92.6 million. Production will be completed at facilities located in Arizona, Kentucky, Pennsylvania and Tennessee with deliveries scheduled for completion by June 2009.

BAE Systems employs nearly 2,000 employees at its Individual Equipment facilities in Arizona, Kentucky, Pennsylvania and Tennessee. The Company's Individual Equipment business is a world leader in the development and manufacturing of individual warfighter and tactical systems for militaries and homeland security forces, offering a broad range of head-to-toe complementary survivability products including body armor plates, vests, hydration systems, assault packs, helmets, flotation collars, parachutes, air crew ensembles and other protective products.

About BAE Systems

BAE Systems is the premier global 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. With 100,000 employees worldwide, BAE Systems' sales exceeded 15.7 billion (US$31.4 billion) in 2007.