BAE Systems Awarded $17 Million Contract for Mk 41 Vertical Launching System Canister Production

Contact:
Doug Coffey
BAE Systems
doug.coffey@baesystems.com
(703) 312-6121

Jeff Van Keuren
BAE Systems
jeff.vankeuren@baesystems.com
(763) 572-7615

MINNEAPOLIS, MN, August 29, 2005 - BAE Systems has been awarded a contract from the Naval Sea Systems Command for more than $17 million to continue production of missile canisters for the Mk 41 Vertical Launching System (VLS).

The contract award provides for 239 refurbished Mk 13 canisters and 18 new Mk 25 Quad Pack canisters for the Mk 41 VLS. VLS canisters provide a sealed storage, transportation and launch container for the wide range of missiles that can be fired from the Mk 41 VLS.

We re proud to continue our role in manufacturing missile canisters for the U.S. Navy and its Mk 41 VLS program, said Gary Tatge, BAE Systems VLS program manager. This contract further demonstrates our customer s satisfaction with the quality of our work. It also speaks loudly of the overall effectiveness of the Mk 41 system in supporting and protecting our sailors.

The Mk 41 VLS is a below deck missile launcher capable of launching missiles at the multiple threats in naval warfare, including anti-air, anti-submarine, ship self-defense, land attack, naval surface fire support and ballistic missile defense missions. VLS are aboard dozens of U.S. Navy ships and demonstrated its importance and launch reliability during Operation Iraqi Freedom in 2003.

The Mk 13 canister is used for the Standard Missile-2, Block II, III and the Mk 25 Quad Pack canister is used for the Evolved SeaSparrow Missile (ESSM). The Mk 25 Quad Pack Canister is unique in that four ESSM are stored and fired in a space normally occupied by one missile. The canisters are slated to support both U.S. and allied Navy requirements.

The canisters will be produced at the BAE Systems facility in Aberdeen, SD. Work on this effort begins immediately and will continue through September 2007 .

About BAE Systems
BAE Systems is an international company engaged in the development, delivery, and support of advanced defense and aerospace systems in the air, on land, at sea, and in space. The company designs, manufactures, and supports military aircraft, combat vehicles, surface ships, submarines, radar, avionics, communications, electronics, and guided weapon systems. It is a pioneer in technology with a heritage stretching back hundreds of years and is at the forefront of innovation, working to develop the next generation of intelligent defense systems. BAE Systems has major operations across five continents and customers in some 130 countries. The company employs nearly 100,000 people and generates annual sales of approximately $25 billion through its wholly owned and joint-venture operations.