BAE Systems Receives $91.4 Million Contract Modification For M113 Reset.

ANNISTON, Ala. -- BAE Systems has been awarded a $91.4 million contract modification from the U.S. Army TACOM Life Cycle Management Command to reset up to 1074 M113 Family of Vehicles.

Under the reset program, the M113 vehicles will be brought back to combat ready condition. In addition, the vehicles will receive add-on armor and nuclear, biological and chemical protective equipment.

"We have worked very closely with our customer to establish an efficient process to bring these M113s back up to operational condition and get them back into the hands of the soldiers who need them," said Andy Hove, vice president of Combat Systems Programs for BAE Systems.

Work on the contract will be performed at BAE Systems' Anniston, Alabama facility and is expected to be completed by December 31, 2008. The modification, when combined with the previous contract awarded in June 2007 worth $18.77 million, brings the total value of the contract to $110.1 million.

The M113 family of vehicles is an integral component of the Army's Heavy Brigade Combat Team.

BAE Systems employs more than 1,000 people in Alabama, with facilities in Anniston, Cordova, Geneva and Huntsville. The Geneva facility manufactures over 60,000 body armor components per month, including the Outer Tactical Vest conversion kits. The Huntsville facility is a leader in air and missile defense, joint interoperability, program management, quality assurance engineering, test and evaluation engineering, cost analysis, sourcing, and business process reengineering.

BAE Systems' will be hosting a dedication ceremony for its newest Alabama facility in Cordova, Alabama on March 7. Cordova manufactures critical components of Advanced Gun System and the Mk 57 Vertical Launch System for the U.S. Navy.

About BAE Systems

BAE Systems is the premier global defense and aerospace company, delivery 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 96,000 employees worldwide, BAE Systems' sales exceeded $27 billion in 2006*.

*On a pro forma basis, assuming BAE Systems had owned Armor Holdings Inc for the whole of 2006