BAE Systems to Supply Thermal Sights for U.S. Army Weapon Program.

LEXINGTON, Mass. -- BAE Systems has received a $15 million contract to provide thermal imaging sights for the U.S. Army's Common Remotely Operated Weapon Station II (CROWS) program.

Under the five-year contract, which has a potential value of up to $200 million, BAE Systems will manufacture and deliver up to 6,500 TIM1500 thermal sights to Kongsberg Defence and Aerospace AS, supplier of the CROWS II system. The CROWS II program has a maximum order quantity of 6,500 remote weapon stations. Production deliveries will begin in early 2008.

"TIM1500 provides a critical infrared imaging capability to the U.S. Army's weapon station of choice for ground vehicles," said Michael Mawn, deputy program director for BAE Systems' TIM1500 program. "The TIM1500 gives the warfighter a significant battlefield advantage."

The TIM1500 improves situational awareness and gives the ability to carry out target acquisition and surveillance at extended ranges. It can be installed on any U.S. Army ground vehicle.

Under an August 2005 contract valued at about $50 million, BAE Systems has already provided more than 1,400 TIM1500 units to Kongsberg Defence and Aerospace AS in support of the U.S. Army Stryker program. Production deliveries under this contract began in November 2005 and are expected to continue through April 2008.

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. BAE Systems, with 96,000 employees worldwide, had 2006 sales that exceeded $27 billion on a pro forma basis, assuming BAE Systems had owned Armor Holdings Inc. for the whole of 2006.