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NEWS IN BRIEF 27 Sep 02

September 27, 2002 by

25 Sep 02. DRS Technologies, Inc. has been competitively awarded an initial contract worth $3m, by the U.S. Army Aviation and Missile Command (AMCOM) at Redstone Arsenal in Alabama, (The contract has a potential value of $14m), from the U.S. Army to provide engineering and logistics support services for the Improved Bradley Acquisition Subsystem (IBAS) installed on the M2A3 Bradley Fighting Vehicles.

Under separately awarded contracts, DRS produces the IBAS, which provides important enhancements to the M2A3 Bradley, including the incorporation of Second Generation Forward Looking Infrared (SG FLIR) technology, supporting the Army’s Horizontal Technology Integration (HTI) initiative.

27 Sep 02. Spanish information technology services and defense company Indra Sistemas SA said today that it has reached an agreement to pay Raytheon $51.5m for the 49% the U.S. company controls in its electronic defense unit Indra EWS. Following the purchase Indra will fully control Indra EWS. Under the terms of the agreement, Indra will make an initial payment of $49.4m, with the remaining $3m to be paid over a three-year period.

Indra said the purchase will increase its earnings-per-share by 5% from last year, although the company didn’t provide any specific nor comparative figures. Indra said despite the decision to buy the stake from Raytheon, the two companies will continue to collaborate.

19 Sep 02. The U.K. Defence Aviation Repair Agency (DARA) has been awarded a contract from BAE SYSTEMS to support the repair of AI24 radars used for air-to-air combat in the Tornado F3 aircraft.

The contract comes shortly after BAE SYSTEMS was named Prime Contractor for the AI24 Radar Sustainment Programme (RSP) for the UK Ministry of Defence’s Defence Logistics Organisation (DLO). An estimated seven-year programme, the contract is worth over £5M and will continue to utilise the significant strengths of DARA’s specialist electronics unit based in Sealand, North Wales, which has the capability to service 95% of all Shop Replacement Units (SRUs) for the AI24 radar.

Under the contract, BAE SYSTEMS will maintain a measured support service for the AI24 radar to ensure equipment availability for Tornado. Any unserviceable items identified will be forwarded to a second-line facility at RAF Leeming before faulty SRUs are passed to DARA for repair. Each SRU will undergo an extensive depth serviceability test and, if required, down to component level.

25 Sep 02. General Dynamics Armament and Technical Products, a business unit of General Dynamics (NYSE: GD), was selected by Lockheed Martin Aeronautics Company, Fort Worth, Texas, as the gun system integrator for the F-35 Joint Strike Fighter (JSF).

Design and development work for the F-35 JSF aircraft’s gun system will be undertaken in Burlington, Vt. Production deliveries could reach several thousand units over the life of the program.

26 Sep 02. BAE SYSTEMS and VT Group today announced that they have acquired Johnson Controls Limited’s 26 per cent share of Flagship Training Limited. Both companies had previously held a 37 per cent share in Flagship but this agreement now provides for 50:50 joint ownership.

Flagship, which has its Headquarters at HMS Collingwood near Portsmouth, entered into a unique 15-year partnering arrangement with the Naval Recruiting and Training Agency, NRTA, in 1996. Flagship has a turnover of £370m per annum and employs 1200 staff both in the UK and overseas. The BAE SYSTEMS shareholding in Flagship is through its Customer Solutions Support business

26 Sep 02. Alcatel will sell a 6.1% stake in defense-electronics group Thales. The French telecom-equipment maker said the sale will strengthen its balance sheet and help finance its restructuring.

18 Sep 02. Wescam (TSX:WSC – News) announced that it has entered into a support agreement with L-3 Communications (NYSE:LLL – News). Under the terms of the agreement, L-3 Communications will make a

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