London September 12, 2005 - The Defense Systems and Equipment International (DSEi) exhibition will be formally opened tonight by John Reid, Secretary of State for Defense.

In his welcoming address John Reid will outline his objective for the Defense Industrial Strategy and the importance of defense exports to both international security and the UK economy:

"We know the challenges of today's strategic environment - international terrorism, proliferation of WMD, failed and failing states. We also have to understand how this environment will change in the future, not least to ensure our armed forces have the equipment capabilities they need.

"Therefore earlier this year I commissioned the Defense Industrial Strategy which will build on the previously published Defense Industrial Policy. The Government intends to produce a clear joint statement to industry of the technologies & industrial capabilities, which will be needed in the future to defend the UK and its interests. In producing the strategy we will consider which capabilities will need to be retained within the UK, those that we can develop with our allies and those that we are confident we can acquire from the global market.

"I can assure you that the driver for this strategy will be our future defense capability. That means we will be very firm about proposals that are not based on this principle. All of us know that the primary purpose of the MoD is to provide fighting power, not jobs. It is not for us to artificially support industries for which we envisage no need. Of course, war-winning capabilities have to be sustained in the longer as well as the short term. That's why we need a strategy.

"So this strategy is about making sure our armed forces get the best equipment available - in the short, medium and long term - to fulfil the role set out in the strategic defense review. Whether in Iraq, Afghanistan or elsewhere, our armed forces continue to do a first class job. We in Government have a duty to continue to equip them with what they need to get the job done."

"Military force is one of a number of tools for tackling threats like this, alongside foreign aid, international development and security sector reform. Agility, flexibility, speed and accuracy are more important than ever.

"The Government recognizes that all countries have the right to self-defense under Article 51 of the UN Charter. However, as many countries lack the indigenous defense industry to manufacture their own equipment, importing other countries' equipment represents their only realistic option to provide themselves with the necessary capability."

"I believe that Britain, as a major importer and exporter, is well placed to understand the interests and concerns of other trading countries. We aim to champion the case for more open defense markets.

New Delhi September 9, 2005 - Indigenous development, being the only solution to ensure reliable and assured product support for warship equipment, has been the key area of thrust of the Indian Navy, Since indigenous development is the only way to ensure complete self reliance, Indian Navy is giving renewed and focused attention to this endeavor by creating a new Directorate of Indigenization at IHQ MoD (Navy) with effect from 01 September this year.

Navy's quest in making rapid strides towards achieving the goal of self-reliance felt constrained due to cumbersome procedures and limited financial powers. The new directorate is aimed at tiding over these impediments and become the nodal agency for all indigenization activities of the Navy.

It would provide a single window interface with the industry, thus cutting down procedural delays and encouraging larger participation of the industry. Assessing the needs of the service, the directorate, in conjunction with the industry, would undertake research, development and subsequent manufacture of engineering and electric equipment.

Over the past few years, a sea change has been observed in the response of the private industry and today, it is fully geared up with the required infrastructure for development and production of high technology defense equipment, with quality at par with the best in the world. The directorate would embark upon various contact programs with the industry and CII in near future to appraise the industry of specific requirements in line with the 15-year Indigenization Plan of the Indian Navy.

Washington September 9, 2005 - Chief of Naval Operations Adm. Mike Mullen announced the following flag officer assignments:

• Rear Adm. (lower half) Kenneth W. Deutsch is being assigned as director, net -centric, N71, Office of the Chief of Naval Operations, Washington, D.C. Deutsch is currently serving as commander, Patrol and Reconnaissance Fifth/Seventh Fleet, Misawa, Japan.

• Rear Adm. (lower half) (selectee) Brian C. Prindle is being assigned as commander, Patrol and Reconnaissance Group, Norfolk, Va. Prindle is currently serving as executive assistant to the deputy chief of naval operations for resources, requirements and assessments, N8, Office of the Chief of Naval Operations, Washington, D.C.

Naples September 6, 2005 - NATO's maritime exercise Cooperative Engagement 2005 (CE 05) will take place from 12 to 23 September 2005 in the Adriatic Sea and in Vlora, Albania. Approximately 1500 military personnel, over 20 ships and 4 helicopters from NATO, including NATO standing formations, and Partnership for Peace nations will train together in Crisis Response Operations (CRO).

NATO's Standing NRF Maritime Group Two (formerly Standing Naval Force Mediterranean) and Mine Countermeasures Group Two (formerly Mine Countermeasures Force South) will participate in the exercise, together with additional forces from 6 NATO nations: France, Greece, Italy, Romania, Slovenia and Turkey and from 4 partner nations: Albania, Azerbaijan, Croatia and Georgia.

CE 05 is a scheduled Allied Joint Force Command Naples (JFC Naples) exercise and will be conducted by the headquarters Component Command Maritime Naples (CCMAR Naples).

CE 05 will practice the prevention of illegal passage and arms smuggling to a fictitious country in order to help re-establish order. The unique design of the procedures and communications used in this exercise serves to demonstrate NATO's ability to fully integrate multinational partner forces and allows an assessment of the progress of interoperability. While assuring the readiness of its own forces, NATO continues its priority of maintaining peace and stability through dialogue and co-operation, to include training with partner nations.

Ottawa September 12, 2005 - Mr. Ward Elcock, Deputy Minister of National Defense has appointed Dr. Robert Walker as Chief Executive Officer (CEO) of Defense Research and Development Canada (DRDC). Dr. Walker replaces

Dr. John Leggat, who held the position since DRDC became a Special Operating Agency in 2000.

In his new capacity, Dr. Walker is responsible for ensuring the organization delivers on its mandate, which is to serve as the national authority for providing science and technology leadership to advance, transform and maintain Canada's defense and security capabilities. On an international level, he will be the principal Canadian representative to the NATO Research and Technology Board and The Technology Cooperation Program (TTCP).

One of Dr. Walker's main responsibilities will be to ensure DRDC is a key enabler of Canadian Forces transformation. His role will be to provide the guidance needed for DRDC to continue to deliver solid leadership and expertise and to further contribute to strengthening national and international science and technology networks and capabilities.

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New Success for Scorpene: International Industrial Cooperation Project

Paris September 12, 2005 - Indian Prime Minister Manoham Singh, also chairman of India's Cabinet Committee on Security, today confirmed to French President Jacques Chirac his country's decision to acquire six Franco-Spanish Scorpene submarines. All six boats will be built entirely in India by Mumbai-based Mazagaon Dock Limited.

DCN is the industrial prime contractor for Scorpene submarines in partnership with Spanish naval shipbuilder Navantia, the two companies sharing industrial responsibility for this ambitious project. DCN will be in charge of the technology transfer and delivery of all services and equipment. Armaris and DCN/Thales subsidiary UDS International will supply the combat systems.

The project is expected to take some 15 years to complete.

Commenting on the sale, DCN Chairman and CEO Jean-Marie Poimbœuf said: "This sale is a mark of recognition of DCN's know-how in international industrial partnerships to deliver strategic systems and technology transfers. It also makes Scorpene the new benchmark for submarine fleets the world over."

Scorpene: Proven DCN know-how in conventional submarines

This DCN-designed product line represents the state of the art in conventional submarine design and construction. It benefits from the latest technologies developed for French Navy classes, particularly as regards acoustic discretion and combat system performance. The modular Scorpene design can be readily tailored to each client navy's specific needs. Built-in interoperability also ensures compatibility with a wide range of customer-specified combat and weapon systems.

This brings the number of Scorpene submarines sold on the international market to ten. The first-of-type O'Higgins was handed over to the Chilean Navy on 9 September 2005 at a ceremony attended by Chilean Defense Minister Jaime Ravinet.

L-3 Communications Vertex Aerospace Helicopter Support Contract

New York September 12, 2005 - L-3 Communications announced today that its Vertex Aerospace (L-3 Vertex) subsidiary has been awarded a one-year, $36.1 million contract to provide Contractor Logistics Support (CLS) for the U.S. Navy fleet of 120 TH-57 rotary-wing training aircraft. With the exercise of four, one-year options, the contract's total value will be $194 million.

L-3 Vertex will perform all scheduled and unscheduled maintenance, repair and supply operations to support 120 TH-57B/C Sea Ranger aircraft used to train helicopter pilots for the U.S. Navy, U.S. Marine Corps and U.S. Coast Guard, as well as foreign military participants. The TH-57 is a derivative of the popular commercial Bell Jet Ranger 206.

Work will be performed at Naval Air Station (NAS) Whiting Field, Milton, Fla., with a satellite operation at the Naval Air Warfare Center, NAS Patuxent River, Md. The program will be administrated from the L-3 Vertex headquarters in Madison, Mississippi. The contract was awarded by Naval Air Systems Command.

"We are extremely proud to be the U.S. Navy's choice to provide a turnkey maintenance and supply operation supporting this critically important mission," said Dan Grafton, president of L-3 Vertex. "Almost all U.S. Navy, U.S. Marine Corps and U.S. Coast Guard helicopter pilots receive their primary training and earn their wings in the TH-57. Support of U.S. Navy training aircraft has been a pillar of our company's success over the past 28 years, and strengthening and expanding this sector is an important key to our future growth."

L-3 Vertex has been the incumbent CLS contractor for the TH-57 program since 1999. L-3 Vertex also supports other training aircraft (fixed-wing) for the U.S. Navy, including the T-34, T-44, T-45, T-6, T-2 and T-39. This new contract was awarded in a competitive process.

DCN Delivers First New-Generation Submarine to Chilean Navy

Cherbourg September 9, 2005 - Today, at an official hand-over ceremony held at its DCN Cherbourg shipyard, DCN delivered the O'Higgins, the first Scorpene-type conventional-propulsion submarine, to the Chilean Navy.

The ceremony was attended by Chilean Defense Minister Jaime Ravinet, French Navy Chief of Staff Admiral Oudot de Dainville, representing the French Defense Minister, and DCN Chairman and CEO Jean-Marie Poimbœuf.

The O'Higgins is the first of two Scorpene submarines ordered under a contract signed in December 1997 by the Chilean Navy and European partners DCN International and Navantia. The Scorpene was designed by and developed jointly by DCN and Spanish naval shipbuilder Navantia.

During its sea trials, the O'Higgins demonstrated exceptional operational performance. This first-of-type vessel will join the Chilean Fleet towards the end of the year. The second submarine, Carrera, is undergoing quayside tests at Navantia's Cartagena shipyard in Spain with sea trials scheduled to begin soon.

The Scorpene represents the state of the art in submarine design and construction. It benefits from the latest technologies developed for French Navy classes, particularly as regards acoustic discretion and combat system performance. Excellent endurance makes this one of the few medium-displacement designs suitable for extended ocean patrol duties. The modular Scorpene design can also be readily tailored to each client navy's specific needs.

The Chilean Navy's acceptance of the O'Higgins casts the spotlight on the DCN group's growing presence in the international marketplace. Two more Scorpene submarines are currently under construction for Malaysia.

Thales to Maintain and Support French Navy ships Nivôse and Floréal

Neuilly Sur Seine, France September 9, 2005 - The French Navy's Fleet Support Service (SSF) has awarded Thales a contract for the maintenance and support of French Navy ships Nivôse and Floréal based on Reunion island in the Indian Ocean.

The contract, worth EUR 12 million, comes under the SSF's "Heading 2005" program launched at the beginning of the year to mark the introduction of competitive bidding for maintenance on French Navy ships. In this context, the contract is an important first for Thales.

"Navy personnel tell us that their work is at sea. Our aim, therefore, is to reduce lay-up time to a minimum. Our offer not only reduces the lay-up time for refits from the usual five months work to just three and a half, but also is also competitively priced. I am confident that these benefits will satisfy our customer throughout the course of this contract and any future services we are asked to provide," says Thales Director, Naval Services, Guy Baruchel.

The ships are 3,000-ton frigates with a staff of 100 sailors. Both are assigned to patrol and surveillance missions in the southern Indian Ocean. The Nivôse is scheduled for a major refit and the Floréal for an intermediate refit. Work on the Nivôse will begin in January 2006 and is scheduled for completion by mid-April.

The Floréal will be laid up for a similar period beginning in July 2006.

Thales will perform the work in partnership with fleet management firm V. Ships. The company has a proven track record in ship support and maintenance as well as partnerships with shipyards all over the world. The Nivôse and Floréal will be drydocked in Dubai and quayside maintenance done on Reunion Island.

After winning the guaranteed-availability maintenance contract for the Dupuy de Lôme* signals intelligence vessel, this latest success confirms the strategic decision to offer Thales customers a comprehensive range of platform support services drawing on the Group's vast experience in naval prime contracting.

L-M Completes Major Design Review of Tactical Radio Systems

Manassas VA September 12, 2005 - Lockheed Martin has successfully completed a Preliminary Design Review (PDR) of the Airborne, Maritime and Fixed Station (AMF) component of the military's Joint Tactical Radio Systems (JTRS) program. Completion of the review marks a major milestone in AMF JTRS development and demonstrates the maturity and capabilities of the next-generation radio system.

During the PDR, held August 9-12, Lockheed Martin and its teammates presented an in-depth review of the AMF JTRS system, from the top-level architecture to the hardware and software components that comprise the foundation of the system. The team demonstrated several key technologies including advanced "ad hoc" networking, which will enable AMF JTRS to automatically form a battlefield network "on the fly," linking any number of units over a dynamic, flexible network.

The team also outlined its approach to JTRS platform integration, one of the most critical challenges for the program. The Lockheed Martin team explained in detail how its AMF JTRS hardware would integrate seamlessly into airframes and ships that have demanding size, weight and power requirements. The review moved beyond just paper and diagrams and demonstrated real hardware and software, illustrating the maturity of the design and reducing risk for the next phase of the program.

"Our AMF JTRS team is making significant progress, refining technologies and reducing risk in order to help deliver this critical capability to the field at the earliest possible time," said Dom Costa, Lockheed Martin's vice president for Joint Tactical Network Systems. "Our team has designed highly advanced prototypes leveraging mature technology that will exponentially enhance the effectiveness of tactical planes and ships, helping warfighters act with unrivaled speed, precision and confidence. Our AMF JTRS program team is on schedule, on budget and ready to move forward with development of this critical net-centric capability."

AMF JTRS is a transformational communications program to modernize the communications systems currently used by the military on fixed and rotary wing aircraft, ground installations and a wide range of warships and submarines. AMF JTRS will replace aging, stove pipe radios with revolutionary new hardware and software that will allow pilots, sailors and commanders to communicate with any other friendly unit and to participate in Network-Centric Operations as a networked node. The JTRS family of radios will be fully interoperable with current and future communications systems, giving warfighters a flexible, reliable and seamlessly integrated global radio network.

"AMF JTRS will deliver unprecedented communications capabilities directly to warfighters on the front line, where connectivity is absolutely critical," said Glenn Kurowski, Lockheed Martin's AMF JTRS program director. "We are building the enabling capability for a dramatic transformation of tactical communications. This system will provide unprecedented interoperability with a collaborative joint network for warfighters in the battlefield theater. This most recent design review brings the AMF JTRS vision closer to reality by focusing on the challenges of platform integration and automating communications from the cockpit to radio room."

Lockheed Martin leads a team of communications, systems and platform integration experts that is competing for the AMF JTRS program. The team, which includes BAE SYSTEMS, General Dynamics, Northrop Grumman, Raytheon and numerous specialized subcontractors, was awarded a 15-month, $51 million pre-system design and development (Pre-SDD) contract in September of last year. The Pre-SDD contract calls for the Lockheed Martin team to map out a proposed architecture and design for the AMF JTRS system.

Lockheed Martin is one of two teams competing for the AMF JTRS system design and development contract award, which is anticipated in 2006.

USN Certifies Latest Advancement in Aegis Weapon System

Moorestown NJ September 12, 2005 - The U.S. Navy certified that the latest evolution of the Lockheed Martin-developed Aegis Weapon System, referred to as Baseline 7, is approved for deployment.

The USS Pinckney, the first ship equipped with the seventh generation of Aegis, will soon begin an operational deployment. "We deploy in 31 days and I want to take this with me," said Cmdr. Jim Malloy, USS Pinckney's commanding officer, to the certification board in late August.

The certification decision "represents the culmination of a remarkable Team effort and clear example of the 'can-do' spirit of our nation's superb engineering talent," said Capt. Peter Nardi, the Navy's Surface Ship Combat Systems manager.

The Baseline 7 Aegis Weapon System contains the first complete commercial-off-the-shelf (COTS) Aegis advanced processing computing architecture and the new AN/SPY-1D(V) radar.

The transition to a complete COTS computing environment and network infrastructure increases the Aegis systems' capability and is a major step toward an open architecture, designed to ease introduction of future computing features and upgrades. The AN/SPY-1D(V) radar system adds the capability to operate more effectively in littoral environments with automatic adaptive radar mode control as well as a more sophisticated ability to defeat electronic countermeasures.

"By working side-by-side with our Navy customer and the shipbuilder, we are providing the crew of USS Pinckney - and 11 additional new construction Aegis-equipped destroyers - with unmatched capability along with the benefits of a totally COTS-based computing environment," said Orlando Carvalho, vice president of Lockheed Martin Maritime Systems & Sensor's Surface-SBMD line of business. "The threats that face the Navy continue to grow and Aegis continues to pace the threat."

Another integral part of this upgraded system is the ship's latest Undersea Warfare System, the AN/SQQ-89(V)15, which also incorporates Lockheed Martin's new Remote Minehunting System (RMS). This further enhances the ship's multi-mission role by providing an organic mine reconnaissance capability to fleet battle groups and increased synergy among major warfighting components on the ship. This same RMS will also be integrated on the US Navy's Littoral Combat Ship, the first of which is under construction at Marinette Marine in Marinette, WI, and will be delivered to the Navy in December 2006.

The Aegis Weapon System is the world's premier naval surface defense system. It seamlessly integrates the AN/SPY-1D(V) radar, the Mk 41 Vertical Launching System and a family of U.S. Navy missiles with its own command and control system, and is capable of simultaneous operations against multiple advanced air, surface, subsurface and ballistic missile threats.

Currently, Aegis Weapon Systems are on 76 cruisers, destroyers and frigates in service around the world. Plans are currently underway to install the system on an additional 30 U.S. and international navy destroyers and frigates.

Selex Sensors and Airborne Systems to Supply Seaspray Radars to USCG

Washington September 9, 2005 - The United States Coast Guard has selected SELEX Sensors and Airborne Systems' Seaspray 7500E radar system for its HC-130H radar upgrade program.

The contract valued at US$67 million is scheduled to run over the next seven years. Prototype evaluation and testing is scheduled to commence in October 2005 leading to the complete conversion of the 27 aircraft fleet by 2012.

A total of 27 HC-130H aircraft will be upgraded to a new level of capability with the installation of the Seaspray 7500E electronically scanned array radar that will be the primary sensor on the USCG's front line long-range maritime surveillance aircraft.

The Seaspray 7500E is the latest evolution of SELEX Sensors and Airborne Systems' highly successful radar family. The 7500E extends the family by utilizing electronically scanned array technology to offer greatly enhanced performance, available features, and life cycle cost compared to conventional mechanically scanned radar.

The SEASPRAY radar system will meet the USCG's challenging requirement for a sensor system able to detect small targets at sea in severe weather conditions, harmful oil spills, track ice flows, and provide en route weather avoidance with precise ground mapping capabilities in a highly integrated airborne mission package.

US Coast Guard HC-130H aircraft are often deployed at short notice in extreme weather conditions to execute search and rescue, law enforcement, humanitarian relief, environmental protection and maritime resource management.

SPAR Aerospace Awarded USCG C-130 Hercules Maintenance Contract

New York September 9, 2005 - L-3 Communications announced today that its SPAR Aerospace Limited (L-3 SPAR) subsidiary has won a contract to provide depot-level aircraft maintenance services for up to eight U.S. Coast Guard C-130H Model Hercules aircraft (C-130).

The firm-fixed price contract, which was awarded after a competitive bid process, is valued at up to $20 million for all eight aircraft. Work will take place at L-3 SPAR's facilities in Edmonton, Alberta, Canada.

The contract award comes at a time when the U.S. Coast Guard and its C-130 fleet is taking a leading role in providing relief and response support to the U.S. Gulf states in the wake of Hurricane Katrina. The C-130 is the airlift workhorse of most air forces and operators around the world and is used extensively in support of humanitarian missions like the current Hurricane Katrina state of emergency and the recent tsunami in Asia.

"L-3 SPAR was selected because of its competitive pricing, its responsiveness to U.S. Coast Guard requirements and its C-130 pedigree, developed over years of work for the Canadian Air Force C-130s," said Commander Shannon McCullar, U.S. Government task leader for the U.S. Coast Guard contract.

L-3 SPAR's anchor customer is the Canadian Department of National Defense (DND). It has been providing maintenance support to the DND's C-130 Hercules fleet since 1960, when Canada purchased its first of this aircraft. L-3 SPAR has performed all major modifications to the Canadian fleet, including cockpit upgrades, special mission modifications, such as search and rescue and tanker conversions and structural refurbishments.

"Our work supporting the Canadian C-130 fleet has allowed L-3 SPAR to build the expertise to enable us to develop our international customer base," said Patrice Pelletier, president of L-3 SPAR. "Working in partnership with Canada allows our company to leverage that knowledge to support many of Canada's allies, including the U.S., New Zealand and Greece. It is this depth of experience that the U.S. Coast Guard is tapping into with the award of this contract."

General Dynamics to Provide Digital Stores Management to ROK Navy

Arlington VA September 8, 2005 - General Dynamics Advanced Information Systems has been awarded a contract by L-3 Communications Integrated Systems to provide the Digital Stores Management System (DSMS) for eight Republic of Korea (ROK) Navy P-3 Orion aircraft. General Dynamics Advanced Information Systems is a business unit of General Dynamics

The DSMS releases and controls aircraft weapons and sensors, enabling search and destroy capabilities. The system includes stores management processors and software, as well as a digital interface and easy-to-use controls for the cockpit crew. Fully compliant with MIL-STD-1760, the system uses standardized electrical and digital connectivity between weapons and the aircraft. The DSMS offers the Korean Navy options to deploy modern weapons, including the Harpoon Block II missile system.

"General Dynamics has extensive experience providing advanced weapons systems for P-3C and S-3B maritime patrol and reconnaissance aircraft," said Mike Fraser, vice president and general manager of General Dynamics Advanced Information Systems Surveillance and Reconnaissance Systems.

"This award broadens our presence in the international maritime surveillance aircraft market and allows us to leverage our knowledge to support the ROK Navy initiative to modernize its mission systems and revitalize its P-3 aircraft to achieve desired service life."

The DSMS design reflects a modular and flexible architecture that uses off-the-shelf hardware and software elements to reduce development costs and risks. General Dynamics' experience with current U.S. Navy P-3C systems allow the company to maximize commonality, giving the ROK Navy supportability and growth options.

Work will be performed in Bloomington, Minn., and includes design, subsystem integration, test and installation support.

Austal USA Recovers Quickly After Hurricane Katrina

Henderson WA September 12, 2005 - On August 29, as Austal USA was approximately two months from completion of its Northern Expansion, Hurricane Katrina made landfall on the North-Central Gulf Coast causing severe damage to infrastructure and agriculture in parts of Louisiana, Mississippi, and Alabama. On August 30, a small contingent of Austal employees arrived to begin the cleanup efforts after the storm.

Since Austal's existing manufacturing facility was designed to withstand the elements of a Category 4 hurricane; the damage incurred was minor. The storm surge came over the construction floor, which is designed to flood, by about two feet. Power was not restored to the facility until Thursday and, unfortunately, several of Austal employees and their families incurred damage to their homes and personal property. As a result, it was decided that the facility would remain closed until Tuesday, September 6. Full operations resumed at that time and, as of Wednesday, September 7, 95% of staff had returned to work on a full-time basis.

The new construction facility, in which Austal plans to build the US Navy's Littoral Combat Ship (LCS), sustained minor wind damage and the building contractor was operating with a reduced crew until Wednesday, September 7, when they returned with a full production force. This new facility consists of two large bays or 16,480 total square-meters under a common roof for module fabrication/erection and component storage, surrounded by two mezzanine levels for shop space, material storage, and small assembly fabrication; two additional launch aprons in front of each bay; a combined wharf (bulkhead) length of 238 meters; and additional overhead cranes capable of lifting 80-tonne modules in each bay.

The other portion of the expansion is a two-story, 1,951 square-meter administration building, which will be complete around Christmas. The Northern Expansion will accommodate a total workforce of up to 700 personnel, almost double Austal's current US workforce.

Austal's Mobile, Alabama, operation has been recognized this year on both the State and local level as "Manufacturer of the Year". It is currently building a 108-meter high-speed vehicle-passenger ferry for a new US operation. Upon completion, this vessel will completely fill the existing shipbuilding shed in which it is being built.

Austal, as a part of a team headed by General Dynamics, is looking forward to receiving word from the US Navy to begin building the much anticipated LCS later this fall. The team's design for the LCS is based on Austal's innovative 128 meter high-speed aluminum trimaran hullform that enables the ship to reach sustainable speeds of nearly 50 knots, and range as far as 10,000 nautical miles, with an unmatched interior volume and payload for vessels of this size.

American Airlines Provides $500,000 to the USO

Fort Worth TX September 12, 2005 - American Airlines AAdvantage(R) members have donated more than $500,000 to the USO's Operation USO Care Package program since Dec. 2003, sending more than 20,000 Care Packages to America's men and women in uniform deployed overseas.

Approved and supported by the Department of Defense, Operation USO Care Packages are filled with items requested by the troops, including a 100 minute pre-paid calling card, toiletries, sunscreen, mini-fans and other items to help keep cool in the desert heat. In addition, each care package includes a personal message of thanks and support from an AAdvantage member.

"The generosity AAdvantage members have shown to deployed members of the U.S. Armed Forces is truly remarkable," said Jeff Zidell, Vice-President American Airlines AAdvantage Marketing. "The care packages and personal messages of support have touched the lives of thousands of deployed men and women, letting them know we appreciate their service and sacrifice."

The USO will continue to provide AAdvantage members the opportunity to thank the troops for their heroic efforts through 2005 at <http://www.usocarepackage-aa.org/>. With a $25 donation, AAdvantage members can send a USO care package to a deployed service member and include a personal note of thanks. As a special thank you, AAdvantage members will earn 125 miles for every care package sponsored.

"American Airlines has been a committed supporter of the care package program," said Elaine Rogers, USO-Metro President and Worldwide Administrator for Operation USO Care Package. "Operation USO Care Package is possible due to the support of corporations like American Airlines, their employees and their AAdvantage members."

BAE Systems to Provide Systems Integration for HMS Clyde

Farnborough September 12, 2005 - BAE Systems has been awarded a contract from VT Shipbuilding Limited for the supply and integration of the combat management system and air surveillance radar for the new Royal Navy Offshore Patrol Vessel (Helicopter) (OPV(H)) HMS Clyde.

BAE Systems is prime contractor for the supply of the combat management system (CMS-1) and air surveillance radar (Terma SCANTER 4100), which will provide the system design, development and integration that will ensure the vessel optimizes its role as part of the Falkland Island patrol force.

Developed primarily for the Type 45 program, CMS-1 has a scalable architecture that enabled BAE Systems to develop a single console system for the OPV(H) with limited tailoring of the software applications. Interfaces to the SCANTER radar and commercial navigation systems are being developed to meet industry standard protocols, resulting in minimal specific development for this vessel and enabling challenging cost targets to be met.

Clive Richardson, Managing Director BAE Systems Integrated System Technologies said:

"This contract award demonstrates our ability to successfully transfer knowledge and competencies across requirements, ensuring the effective integration of systems, protocols and capability."

BAE Systems will support a series of early integration activities between CMS-1 and radar in Denmark, prior to carrying out formal trials and acceptance onboard the OPV(H) in the UK. The ship is due to be delivered to the Royal Navy in Autumn 2006, and will enter service after the completion of operational performance trials in the UK, in Spring 2007.

BAE Systems is currently negotiating a contract with VT to support the system for an initial period of 5 years, with an aim to agree an availability based contract in the very near future.

Success for Thales in India on Scorpene Submarine Program

Neuilly-sur-Seine, France September 12, 2005 - The Indian government has chosen Armaris, a joint venture between Thales and DCN, as prime contractor for the technology transfer program under which six conventionally propelled Scorpene submarines will be built in India.

For Thales, the contract is worth nearly € 600 million.

As well as assuming prime contracting responsibilities through Armaris and providing assistance to the Indian shipbuilder Mazagaon Dock Limited, Thales will supply key subsystems for the submarines' six SUBTICS(r) integrated combat systems, including underwater sensors, communications and optronics and electronic warfare equipment.

The Thales Group welcomes the Indian government's decision, which signals a strengthening of the long-standing cooperation that has existed between India and France.

Denis Ranque, Thales Chairman and CEO added, "I am particularly proud of this success in India, brought about by the Armaris branch. This is the second submarine program, after Malaysia, to which Thales contributes both technological and commercial expertise, thanks to the excellence of its international network."

Thales has been active in India for more than 50 years. The Group enjoys a strong cooperative relationship with the Indian armed forces and has provided equipment, systems and support for numerous platforms in service with the country's land, air and naval forces. Thales also has a strong presence in civil aviation (particularly as an equipment supplier for the Airbus airliners in service with Air India and Indian Airlines), and in the air navigation sector. Thales electronic fare collection systems have also been selected for the Delhi and Calcutta metros. As part of its multidomestic strategy, Thales recently expanded its local presence in India, setting up a new company in New Delhi in 2003. The new company, Thales International India, offers a range of IT and support services for local civil and military programs.

Northrop Grumman Gulf Coast Shipyards Return to Work

Pascagoula September 11, 2005 - Northrop Grumman Corporation today announced its Ship Systems sector has put out the call to all its shipbuilders who can return to work at its Pascagoula and New Orleans shipyards on Monday, Sept. 12, to do so.

Both yards will return to partial ship production and office work beginning Monday, Sept. 12, and cleanup and recovery efforts will continue at all sector facilities.

"I doubt there is any other workforce in the world that could reassemble these great shipyards in such a brief time -- just two weeks -- following one of the worst natural disasters to befall this nation in its history," said Philip Teel, President of Northrop Grumman Ships Systems. "These men and women of the Gulf Coast have come to work to restore their shipyards while they also rebuild their homes and communities. This is the character of the American shipbuilder and what makes America's shipyards great."

Both shipyards have restored sufficient power to their operations over the weekend to resume shipbuilding activities this week. Work will begin aboard a number of the 11 Navy and Coast Guard ships currently under construction at the Ship Systems yards Monday. Generators and shore power were moved into place over the weekend to resume work on the guided missile destroyers, amphibious assault ships, Coast Guard cutter, and oil tanker currently under construction. Ship Systems is working with its customers to phase and prioritize its shipbuilding work.

The largest manufacturing employer in Louisiana and Mississippi, Northrop Grumman had thousands of shipbuilders report to work last week to restore the shipyards, and thousands are expected to respond to the call to work Monday. The company's shipyards were impacted by Hurricane Katrina and have spent the last two weeks in facility cleanup, repair and restoration.

Partial shipbuilding work had already begun at the Pascagoula yard last week aboard two ships, the guided missile destroyer Forrest Sherman (DDG 98) and the amphibious transport dock San Antonio (LPD-17).

If employees are not able to report to work, they are instructed to contact their supervisors. During the re-opening period, employees who are not able to report to work due to personal hardship may request additional leave time.

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