BAE Systems Receives Armor Material Contract Potentially Worth up to $47.2 Million.

ANNISTON, Ala. -- BAE Systems has been awarded a U.S. Army contract worth up to $47.2 million to manufacture armor for Mine Resistant Ambush Protected (MRAP) vehicles. The contract, currently funded at $23.6 million and not to exceed $47.2 million, calls for the manufacture of 65,000 Expanded Metal Armor plates and funds tooling to establish additional production capacity at the company's Anniston, Alabama facility.

The expanded metal armor program, developed by BAE Systems for use on future MRAP vehicles, will add 30 jobs at the Anniston facility.

"This product will add to the supply of armor needed for MRAPs," said Ann Hoholick, vice president of Amphibious Vehicles and Armor Kits for BAE Systems. "MRAPs have proven to well protect our servicemen and women theater, and this armor will provide additional protection when they are in the field."

The Anniston facilities include a 450K square foot forge facility that is the U.S. industrial base for combat systems track, producing the majority of the forged track and suspension components for the U.S. inventory of tracked vehicles. Its 196K square foot Vehicle Upgrade and Overhaul facilities currently perform upgrades, overhauls and repair work on the M113 Family and the M88A1 medium recovery vehicles in partnership with the Anniston Army Depot.

The Anniston facility also resets, upgrades, disassembles and assembles M113 and M88A1 armored vehicles. It conducts track research and is the Department of Defense's largest producer of track for tracked vehicles.

BAE Systems employs more than 1,000 people in Alabama, with facilities in 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. The Cordova facility manufactures the 155-mm Advanced Gun System magazine and the Mk 57 Vertical Launching Systems canisters for the U.S. Navy's newest class of destroyer, the DDG 1000.

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 97,500 employees worldwide, BAE Systems' sales exceeded PS15.7 billion (US$31.4 billion) in 2007.