Two Further Bradley Remanufacturing Contracts for BAE Systems Total $411.7 Million.

YORK, Pa. -- BAE Systems has been awarded two contract modifications from the U.S. Army TACOM Life Cycle Management Command, totaling $411.7 million, to remanufacture and provide spares for Bradley A3 Combat Systems.

Under the first contract, BAE Systems will upgrade 108 Infantry Fighting Vehicles, 60 Cavalry Fighting Vehicles and four Fire Support Team Vehicles to the A3 baseline, working through the company's Public Private Partnership with Red River Army Depot (RRAD). Initial disassembly and subsystem rebuild will be performed at RRAD, final disassembly and structural modifications will be completed by BAE Systems in Fayette County, Pennsylvania, and final assembly, integration and test will be conducted at the company's facility in York, Pennsylvania.

The second contract calls for BAE Systems to provide spare parts for Bradley A3 Combat Systems.

"The Bradley A3 gives soldiers a very capable and flexible combat system for the tough missions they must perform," said Andy Hove, vice president of Combat Systems Programs.

These contracts, when combined with the $1.16 billion contract awarded last November for the remanufacture and upgrade of 610 Bradley Combat Systems, bring the total value of BAE Systems Bradley work to $3.9 billion for Fiscal Years 2005 - 2007.

This version of the Bradley incorporates the latest enhancements to improve the vehicle's lethality and survivability, including a full-solution fire control featuring a hunter / killer capability with two second generation sights. The A3 also features integrated information technologies with enhanced command and control features, such as color maps and displays, high-density computer memory, increased micro-processing speed and networked communications.

These command and control functions are supported by a more accurate navigation and position locating system. All of these features are implemented with a digital architecture and software, which allows modularity and flexibility to support all of the Bradley mission roles in the in the Army's Heavy Brigade Combat Teams.

Deliveries for both contracts are scheduled to begin in October 2009 and continue through February 2010.

Bradley Combat Systems continue to provide outstanding survivability, mobility and lethality to U.S. soldiers in close-combat urban situations as well as in open-combat. The Bradley fulfils five critical mission roles - infantry fighting vehicle, cavalry fighting vehicle, fire support vehicle, battle command vehicle and engineer squad vehicle - for the Army's Heavy Brigade Combat Teams.

About BAE Systems

BAE Systems is a 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 88,000 employees worldwide, had 2006 sales that exceeded $25 billion.