Bae Systems CNI Business Achieves Outstanding Industry Rating.

Business Editors/Hi-Tech Writers

WAYNE, N.J.--(BUSINESS WIRE)--April 15, 2002

BAE SYSTEMS Communication, Navigation and Identification (CNI), headquartered in Wayne, New Jersey, has achieved a level of software engineering maturity matched by less than two percent of all measured companies nationwide.

The "Level 5" Capability Maturity Model (CMM) rating was awarded to BAE SYSTEMS CNI by the Carnegie Mellon Software Engineering Institute (SEI) on Mar. 27. Level 5 is the highest SEI rating, and indicates that CNI is operating at the "Optimizing/Continuous Improvement Level" in its software development process.

The 2-1/2 week assessment was conducted by a team of seven SEI software development professionals. The independent review team, led by Ms. Marilyn Bush -- co-author of the Software Capability Maturity Model -- conducted more than 90 interviews of key managers and company software experts, and assessed hundreds of pieces of evidence supporting the top rating.

In its final report, the SEI assessors noted that "Software Engineering is being used as a model for process improvement within" the BAE SYSTEMS unit and "people like being in a company that is striving to be world class."

CNI President Jeff Markel said the rating represents "attainment of a significant milestone in maturing of the processes we use to manage our business. Level 5...is a very important benchmark that we can use in evaluating our performance against the best in our industry."

But it's not an end point, Markel added, "Our employees are demonstrating every day that they are embracing the optimizing/continuous improvement rating that Level 5 represents by providing our customers the excellent products and services they deserve and expect from us."

Bob Stow, BAE SYSTEMS North America vice president for engineering and technology, said, "CNI's outstanding achievement is part of our enterprise-wide initiative to achieve world class software CMM levels by leveraging best practices across all of our businesses. Significant productivity improvements have also been realized throughout our software development organizations as a result of this initiative."

Peter Howard, director of software engineering, said that CNI's Level 5 achievement was "the result of continuous process improvement efforts" by all employees that "resulted in improved project performance clearly visible to our internal and external customers."

A company's level of software maturity is important, as the Department of Defense is requiring increasing software maturity from its contractors. A higher maturity level means less risk on bids, more predictable performance, and an infrastructure and culture that can continually improve software development processes and performance.

Based on a March 2002 SEI report of 714 assessed software businesses in the U.S, only 1.8 percent had achieved a Level 5 CMM rating.

Notes to Editors:

The Software Engineering Institute (SEI) is a federally-funded research and development center, sponsored by the U.S. Department of Defense through the Office of the Under Secretary of Defense for Acquisition, Technology, and Logistics.

The SEI staff, based at Carnegie Mellon University, Pittsburgh, Pennsylvania, draws extensive technical and managerial experience from government, industry, and academia. The SEI's core purpose is to help others make measured improvements in their software engineering capabilities. More information is available on its web site at www.sei.cmu.edu

The Software Capability Maturity Model was developed by the Carnegie Mellon Software Engineering Institute to assist organizations in maturing their people, processes, and technology assets to improve long-term business performance. Levels of maturity are (from lowest to highest):

-- Level 2 -- Repeatable

-- Level 3 -- Defined

-- Level 4 -- Quantitatively Managed

-- Level 5 -- Continuous Improvement/Optimizing

About BAE SYSTEMS:

BAE SYSTEMS is a systems company innovating for a safer world. BAE SYSTEMS employs 120,000 people and has annual sales of around $18 billion. The company offers a global capability in air, sea, land and space with a world-class prime contracting ability supported by a range of key skills.

BAE SYSTEMS designs and manufactures military aircraft, surface ships, submarines, space systems, radar, avionics, communications, electronics, guided weapon systems and a range of other defense products. BAE SYSTEMS is dedicated to making the intelligent connections needed to deliver innovative solutions.

BAE SYSTEMS North America is a high-technology U.S. company employing more than 22,000 Americans who live and work in 30 states and Washington, D.C. -- dedicated to solving our customers needs with both highly innovative and leading-edge solutions across the defense electronics, systems, information technology and services arenas.

BAE SYSTEMS Communication, Navigation & Identification, headquartered in Wayne, New Jersey, employs more than 1,300 professionals, innovating technically superior solutions that transform the armed forces' communication, mobility, and mission effectiveness.