RSS Formidable Greets ACCORD Visitors

Singapore December 22, 2005 - Members from the Advisory Council on Community Relations in Defense (ACCORD) had the privilege of touring the RSS Formidable yesterday at Changi Naval Base. The visit was hosted by Dr Ng Eng Hen, Minister for Manpower and Second Minister for Defense.

Through the visit, the ACCORD members were given a better understanding of how the Republic of Singapore Navy (RSN), in line with the transformational journey towards a 3G SAF, leverages on technology to hone its fighting capabilities and enhance operational readiness. They also met with personnel from the 185 Squadron who operate the frigate, and gained insights into their training regiment and daily operations. It is hoped that through such visits and with their increased understanding of SAF’s capabilities, ACCORD members can help play an enhanced and important role in reinforcing public commitment to national defense and confidence in the operational readiness of the SAF.

Formed in 1984, ACCORD acts as a platform for the public to provide feedback on defense-related issues. ACCORD members deliberate and recommend measures to increase public awareness and understanding of their roles in the defense of the nation. They also seek to gain greater support and recognition from families, employers and peers of Full-Time National Servicemen (NSFs) and Operationally Ready National Servicemen (NSmen). The members represent a good cross-section of society from the business sector, public sector, institutes of higher learning, grassroots organizations, media and trade unions.

Ukraine Brings Claims Against Russia's Black Sea Fleet

Moscow December 22, 2005 (RIA Novosti) - Ukraine has claimed that Russia's Black Sea Fleet is unlawfully holding some of its facilities, a senior Ukrainian diplomat said Thursday.

Leonid Osavolyuk, Ukraine's acting charge d'affaires in Russia, said the Ukrainian side had failed to take full inventory of the facilities owned by the Black Sea Fleet. "The Russian Black Sea Fleet owns some facilities unlawfully, and we demand the return of these facilities," he said.

According to the diplomat, Ukraine has repeatedly raised the issue of holding the fleet to the terms of a 1997 agreement that was signed between the two countries.

"Ukraine is not initiating early termination of the agreement on the Black Sea Fleet," he said. "At the same time, we want this agreement to be strictly observed by both parties and the terms of the fleet's stay to comply with Ukrainian legislation."

Meanwhile, the diplomat said that cooperation with Russia was a major aim of Ukrainian foreign policy.

He added that bilateral economic cooperation was developing quite dynamically and bilateral trade was expected to total $20 billion in 2005.

But relations between the two countries remain tense over the issues of gas supplies, the lease terms for the Russian Black Sea Fleet in Sevastopol, and border cooperation.

The commander of the Russian Navy has said that the terms of the Black Sea Fleet's lease in Sevastopol were not subject to review. Admiral Vladimir Masorin said, "The terms of the Black Sea Fleet's stay in Sevastopol and the Crimea are clearly defined in the 1997 basic agreement between Russia and Ukraine and are not subject to review."

Harrah's Reaches Out to Troops Worldwide Through USO

Washington December 22, 2005 - Harrah's Entertainment, Inc., the world's largest gaming-entertainment company, has donated $1 million to the USO to enhance USO centers and extend vital morale-boosting services to US service members around the world.

Some $400,000 is being distributed to equip various USO centers with new computers and large-screen TVs, as well as remodel canteen areas so troops and their families can enjoy home-cooked meals. In addition, funds will upgrade the break room at Dover Air Force Base in Delaware, which provides respite for members of the Base Mortuary Team, and establish a "mini-USO" in Dubai, United Arab Emirates, for service members coming into port.

Earlier this year, approximately $600,000 of the Harrah's donation was used to purchase two mobile canteens for troops and their families in the Southwest and Midwestern United States, which effectively extended the reach of the USO in these areas.

The centers receiving the grants for refurbishing projects include USO Puget Sound, USO Okinawa, USO at Los Angeles International Airport, USO Seoul (Camp Kim), USO Delaware, USO Stuttgart (Germany), USO Sasebo (Japan), USO Rhein Main (Germany), USO Dubai, USO of the Greater Jacksonville Area, USO Hampton Roads, USO San Antonio, USO Illinois, USO Kuwait, USO of Northern Ohio, USO Georgia and USO Pensacola.

"These grant awards mean that USO centers in these areas can make needed improvements, enhancing the services they provide to our men and women in uniform," said Edward A. Powell, USO president and CEO. "We are enormously grateful to Harrah's Entertainment for helping the USO improve the quality of life for US service members," Powell added.

"None of us can ever hope to repay the debt of gratitude we owe those who dedicate their lives to keeping America free and safe," said Gary Loveman, president, CEO and chairman of Harrah's Entertainment, Inc. "Still, my hope is that this gesture, made on behalf of our nearly 100,000 employees, provides some indication of just how thankful we are for all they give to our country."

Historic Morris Island Battlefield Again Under Threat of Development

Charleston SC December 22, 2005 - Just in time for the holidays, the Grinch has reared his ugly head outside Charleston Harbor. This time, though, the green icon is not trying to steal a few presents; instead, he's attempting to make away with hallowed battlefield land on the northern tip of Morris Island, S.C.

The Civil War Preservation Trust (CWPT) has learned that the Ginn Company, a Celebration, Fla. firm that specializes in resort development, has recorded two land plats for 125 acres on the northern tip of Morris Island. This part of the island, located near Cummings Point, played a pivotal role in the Civil War.

"Our history records few deeds of valor more heroic than the charge of the 54th Massachusetts on the ramparts of Fort Wagner," remarked CWPT President James Lighthizer. "The scene of such gallantry should be preserved to inspire all Americans, not transformed into a resort for a select few."

A barrier island just outside Charleston Harbor, Morris Island served as the launching pad for the Civil War siege of Charleston, considered by many historians to be the longest siege in US history. Its shifting sands also witnessed the famous assault by African-American volunteers on Confederate- held Fort Wagner -- an attack later depicted in the 1990 movie Glory.

Today, Morris Island is at the center of a national debate about preservation of hallowed battlegrounds. Although much of the island is currently protected, the most historically significant part of the island remains vulnerable to development.

"Preserving Morris Island is a top priority for legions of organizations and individuals in both the public and private sectors," said Blake Hallman, chairman of the Morris Island Coalition, a coalition of nonprofit groups (including CWPT) seeking to protect the island battlefield. "In the spirit of the holidays, I hope the property owner will allow us a chance to put together a viable offer, saving this land and its historic character forever."

The plat map recorded by The Ginn Company reads: "Plat of the northern tip of Morris Island owned by Lowcountry Lands, Inc. about to be conveyed to Ginn-LA Fund IV Cummings Point, LLC." Earlier this year, a Greenville, S.C. developer placed the property up for sale on eBay, an online auction service.

Hallman's comments were echoed by Nora Kravec, one of the founding members of the Morris Island Coalition: "Morris Island is more than a local historical battle site -- it's a national treasure. The sacrifices made and courage demonstrated on those shores are epic. We owe it to the memory of hundreds of brave soldiers not to let this one go without a fight."

A public opinion poll commissioned by CWPT in February 2005 reveals that Charleston County voters overwhelmingly support preservation of historic Morris Island. According to the poll, 71 percent of those surveyed advocate protection of the barrier island, located just outside Charleston Harbor. Seventy-seven percent stated that Charleston County should ban development on Morris Island.

With 75,000 members, CWPT is the largest nonprofit battlefield preservation organization in the United States. Its mission is to preserve our nation's endangered Civil War battlefields and to promote appreciation of these hallowed grounds. CWPT's website is www.civilwar.org.

SSGNs Take Significant Step Towards Rejoining the Fleet

Bremerton December 22, 2005 - USS Ohio (SSGN 726), the Navy’s first modern guided-missile submarine in the US Navy, took a significant step towards rejoining the fleet Dec. 19^th. Ohio arrived at Puget Sound Naval Shipyard in Bremerton, Wash., with a broom atop its sail to signify its clean sweep of the ship’s initial sea trials.

Ohio's Commanding Officer, Cmdr. Michael Cockey, expressed satisfaction with the ship’s performance and noted its great potential.

"It’s great to be completing an arduous overhaul and conversion period and moving on to demonstrating the tremendous capability this ship brings to the fleet. The Ohio crew will be pioneers in tactics and employment of this amazing class of ships."

"SSGNs will provide us with one of the most capable and versatile strike options in the Navy," said Rear. Adm. William Hilarides, program executive officer for submarines. "We are eager to have Ohio and her sister ships rejoin the fleet."

Ohio is the first of four fleet ballistic missile submarines (SSBNs) to be converted into SSGNs. Prior to the conversion process; each boat unloaded its complement of Trident Submarine Launched Ballistic Missiles. Twenty-two of the 24 missile tubes on each boat are being retrofitted to carry up to seven Tomahawk cruise missiles, for a maximum load out of 154 missiles per boat. The remaining two tubes are being converted into Lock-in/Lock-out chambers for use by Special Operations Forces (SOF).

Each SSGN will be able to carry and support up to 66 Special Operation Forces for an extended period of time. These ships will have a specialized planning area, physical fitness equipment, and laser shooting ranges for use by the Operators. Further, SSGNs will be able to carry two Advanced SEAL (Sea, Air, Land) Delivery Systems, two Dry deck Shelters, or one of each using the lock-in/lock-out chambers as their docking sites.

"The ability to carry a large Special Operations Force, coupled with its Tomahawk strike capability and inherent stealth characteristics make SSGN a unique and powerful platform for combatant commanders to carry out a variety of missions," said Capt. David Norris, SSGN program manager (PMS 398).

In addition to the strike capabilities of SSGNs, the submarines will also have improved Intelligence, Surveillance, and Reconnaissance equipment, enhancing their ability to carry out clandestine operations.

Due to its size and layout, SSGNs offer expanded living and training space for embarked SOF. This space includes increased bunk capacity, as well as improved training and physical conditioning areas that allow the SOF operators to maintain their high operating capacity.

Another advantage of SSGNs’ size will be its ability to carry an increased payload. In the future, this capacity will allow for the launch and recovery of unmanned undersea vehicles (UUVs). As new capabilities and equipment are developed, they can be inserted relatively easily into SSGNs thanks to its Open Architecture computing systems and the related ability to rapidly integrate new technologies and payloads. SSGN can also offer significant opportunities to serve as a test platform to develop future weapons, sensors and operational concepts.

"The added payload capacity of the SSGNs gives us mission flexibility and future capability options unlike anything we have ever had," added Norris.

The SSGN conversion program is the first truly transformational program in the Navy. President George W. Bush made reference to it in his May 2001 commencement address to the US Naval Academy, and since then, the program will go from the first boat entering the shipyard to the last boat being delivered back to the fleet in less than five years. SSGN embodies a new level of adaptable warfare that is suited for today’s security environment.

The three other submarines undergoing the SSGN conversion process - USS Michigan (SSGN 727), Florida (SSGN 728), and Georgia (SSGN 729) - are all slated to rejoin the fleet by 2007.

New Adversary Detachment Stands Up in Key West

NAS Key West December 22, 2005 - The Navy’s newest Adversary detachment has just begun flying operations out of Naval Air Station Key West, Fla. Twelve F-5N Tiger fighter aircraft and their pilots will fly adversary training missions against carrier battle groups during their pre-deployment exercises.

"As a matter of fact, the detachment just finished their first operational tasking flying Air-to-Air missions against Strike Fighter Squadron-106 (VFA-106) Super Hornets, "said Jay Bolles, the Integrated Program Team lead for Adversary Aircraft in PMA-207. "They flew 158 flights in two weeks with eight aircraft."

The adversary pilots flying the Tiger’s are from Fighter Composite Squadron-13 (VFC-13). There are 20 pilots, eight active duty and 12 Navy Reserve and 40 enlisted members. This detachment at Key West is part of the same unit that also supports the Top Gun school at the Naval Strike Air Warfare Center at Naval Air Station Fallon, Nev.

"The Navy tasked us with flying these adversary missions four to five times a year from NAS Fallon, Nev. but the costs of getting the adversary aircraft, pilots and maintenance staff out to NAS Key West was just getting too expensive," said Bolles. "In order to save money we decided to establish a detachment of 12 jets permanently down in Key West."

This initiative began in August 2004 and the goal was to get the jets and people set up and operational in Key West by October 2005. But a few challenges were encountered along the way: the high cost of housing, getting people hired, getting support equipment for the aircraft and specifically, the four hurricanes that struck Florida this year. Those four hurricanes caused the aircraft and people to be evacuated from NAS Key West, where the detachment is based.

"Mother Nature did not cooperate with us at all; we had four major hurricanes and four evacuations. The last hurricane literally put the entire base under two feet of water," said Bolles. "There were employees who lost just about everything, but they’ve managed to get back together to where we are today."

Sikorsky supplies the maintenance team and the support equipment needed to operate the Tigers. "Sikorsky did a great job getting all the support equipment and all the other things needed to run a detachment in place down there," said John Dennis, logistics support lead for Adversary Aircraft, PMA-207.

"I think that the teamwork shown by the program office, the Commander Navy Air Reserve Forces, VFC-13, Sikorsky and Northrop Grumman paints a really good picture and created a great partnership," said Bolles. "A lot of people said there was no way that we were going to be able to pull this off and we did it. I don’t take the credit, it was the team that accomplished this and it’s a real success story."

C-2 Rewired Prototype Debuts in Fleet

NAS Patuxent River December 21, 2005 - NAVAIR held the premiere for the C-2 community’s "lead star" Dec. 14, marking completion of a blockbuster project replacing 23 miles of wiring in the first of 35 of the Navy’s C-2A aircraft.

Norfolk carrier logistics support squadron VRC-40, the Rawhides, hosted officials from Patuxent River Naval Air Station and North Island, Calif. as the prototype aircraft returned to the fleet.

Around 150 C-2 community members achieved the critical engineering milestone after designing and installing miles of state-of-the-art wiring at Naval Air Depot, North Island. The wiring was then tested for final return to the fleet at Patuxent River’s test and evaluation squadron, VX-20.

The scene included the entire squadron standing at attention as the official aircraft records were turned over by PMA 231’s Lt. Cmdr. Sean McDermott and Jimmy Fingerle to Cmdr. Brad Brown of VRC-40. McDermott reminded everyone that although the focus for the day was on the first C-2 to be delivered, this success would be followed by the rewire of all C-2s operating in the fleet.

"One more is already rewired," he said, as he reemphasized PMA-231’s commitment to deliver approximately five per year through 2012.

Brown, who had the opportunity this week to spend some time on the rewired aircraft, said that the "hand-artisan work represented impeccable craftsmanship."

The C-2 plays a key role in carrier operations and is the only aircraft of its kind - transporting mail, cargo, fleet personnel, distinguished visitors and dignitaries to and from the carrier.

"Replacing the wiring is the most important thing we could do as a community to extend the safety and service life of the aircraft," he said.

Don Sano and Dan Plale, an award-winning duo who recently received engineering excellence awards from NAVAIR’s E-2/C-2 Program Manager, Capt. Randy Mahr led the team consisting of depot artisans, craftsmen, engineers and representatives from contract partner Cherokee Nation Industries of Stilwell, Okla.

Deputy Commander Capt. John Covell, Airborne Command Control and Logistics Wing, discussed the delivery of the aircraft with VRC-40’s AE3 Gary Greear earlier in the day and asked him to speak to squadron mates at the ceremony. Greear shared what it means to have such significant safety and performance improvements for crews operating to and from the carrier, which commonly transport passengers.

Commander Capt. Tim Trainer gave the project a thumbs-up saying "North Island stands ready and is looking forward to delivering more."

"This success is part of our team’s continuing contribution to the Navy-wide goal of delivering the right force, with the right readiness, and at the right cost," said Rear Adm. David Venlet, Program Executive Officer for Tactical Aircraft Programs. Venlet oversees the efforts of PMA 231. "You’ll see much more of this as the Naval Aviation Enterprise continues to streamline development and procurement of the systems we send forward to our fleet warfighters."

The Naval Aviation Enterprise is a partnership among naval leadership to optimize processes that maintain current readiness while investing in future readiness.

The enterprise concept focuses naval aviation on the single fleet-driven metric of producing aircraft ready for tasking at reduced cost.

MOD Responds to HCDC Report on Future Aircraft Carriers

London December 21, 2005 - The Ministry of Defense has this week responded to a report on the planned future aircraft carriers, and the aircraft that will operate from them, published by the House of Commons Defense Committee.

Many of the issues raised in the report were dealt with directly in an announcement made by Secretary of State for Defense, John Reid last week which outlined significant progress on the project, including:

• The current carrier Alliance team of MoD, BAE Systems, Thales and KBR, is to be joined by VT Group and Babcock.
• Plans for the construction and assembly of the ships at Alliance members' yards have been agreed.
• MoD is to spend some £300M to develop the design of the ships to the point at which manufacturing can begin.

MOD will now work with industry to finalize the program budget, set a construction timetable and to establish in-service dates. When we have completed this work we can then commit to the manufacture of the project with the highest degree of confidence in our plans. The tenets of Smart Procurement, and common sense, dictate that we deal with all potential issues and risk in a project before we leap into huge investment decisions and announce project timescales. This approach - spending more time and money upfront - improves our confidence that the manufacturing of this important defense capability will better kept to budget and time. As John Reid has made clear, the overall cost of the project and the target in service dates will not be announced until the main investment point is reached.

The MOD recognizes the importance of technology transfer in ensuring that the UK has the sovereign capability to operate, program, maintain and upgrade the proposed Joint Strike Fighter throughout its planned life. The UK already has the information it needs at this stage of program, and has made the US aware of the progress that needs to be made ahead of the next milestone on the project, a memorandum of understanding on production, sustainment and follow-on development, due in 2006.

The MOD refutes any suggestion that the new carrier program means that the Royal Navy will have less-capable ships in the interim. We believe our in-service equipment is already world-class and, as John Reid said as part of the announcement on the new carriers last week:

"Alongside this, I am announcing our intention of asking the alliance to put forward one integrated plan: not only to maintain the new carriers but to look after the existing carriers until they go out of service. By getting the same people to commit to maintain the existing carriers until the new ones are ready to go we will ensure there is a continuity of capability for the Royal Navy."

Crash of Sea Harrier Jump Jet Fighter

New Delhi December 22, 2005 - A sea Harrier Jump-Jet fighter of the Indian Navy met with an accident while taking off from Dabolim Airfield, Goa, on 05 Dec 2005. The pilot Lieutenant Commander HPS Pannu died in the accident and the aircraft was totally damaged. The compensation to the next of kin of the pilot shall be paid according to the service norms.

A Board of Inquiry has been constituted to inquire into the reasons of the accident and its report is awaited. Mid Life Upgrade of Sea Harriers in accordance with the scheduled planning has been entrusted to the Hindustan Aeronautics Limited.

This information was given by the Defense Minister Shri Pranab Mukherjee in a written reply to Shri Ravi Prakash Verma and Shri Anandrao V Adsul in Lok Sabha today.

Middlemen in Defense Deals

New Delhi December 22, 2005 - Defense Procurement Procedure 2005 followed for capital acquisition allows direct dealing with Original Equipment Manufacturer (OEMs)/Authorized Vendors/Government sponsored Export Agencies (applicable in case of countries where domestic laws do not permit direct exports by OEMs). Further the procedure incorporates several provisions to ensure transparency and cut down delays in the procurement process. Some of these provisions are making qualitative requirements more broad based so as to avoid single vendor situations, direct offsets and integrity pact as part of the Request for Proposal (RFP) for purchases over Rs. 300 crore; Standard contract terms upfront as part of the RFP (this includes provision regarding penalty for use of undue influence by the seller and prohibit engagement of any agent or payment of agency commission by the seller) and broad timeframe for completion of different procurement activities.

This information was given by the Defense Minister Shri Pranab Mukherjee in a written reply to Smt D Purandeswari in Lok Sabha today.

Opposition Urged Not to Soften Stance on Arms Deal

Taipei December 22, 2005 (TIS) - The United States is looking forward to a quick passage of a major arms procurement bill by Taiwan's Legislature, but it does not care about whether it is financed by a regular or special budget, Vice Minister of National Defense Tsai Ming-shien said on Wednesday.

Tsai, who returned recently from the United States where he took part in a Taiwan-US military meeting, made the remarks while giving a special report at the National Defense Committee under the Legislative Yuan.

The MND is willing to find common ground with the opposition on how the budget for the arms purchase package should be earmarked in order not to affect the allocation for other operations despite the fact that President Chen Shui-bian has proclaimed that the country's military spending should be lifted to 3 percent of the nation's gross domestic product, Tsai said.

Out of concern over the latest development, members of the Democratic Action Alliance visited the legislative caucus of the PFP on Wednesday morning, asking the party never to soften its stance against the major military purchase bill.

Alliance members also urged KMT Chairman Ma Ying-jeou not to bow to pressure from the United States by agreeing to the MND's 3 percent GDP proposal.

Increased military expenditures would fan an arms race with China, whose military budget accounts for only 0.43 percent of its GDP but is 8.7 fold that of Taiwan's level, they warned.

An adjustment from the current ratio of 2.42 percent in GDP to 3 percent equals a considerable growth of NT$70 billion in cash, which in turn is not a guarantee for peace, they said, noting that a 2.42 percent share already makes Taiwan one of Asia's frontrunners in military spending.

Echoing their comments, PFP legislative caucus whip Daniel Y.C. Huang said that the MND's military procurement bill must be assessed together with the government's finances and the state of cross-Taiwan Strait relations.

Estonia to Acquire Sandown Class Minehunters

Tallinn December 12, 2005 - The Estonian Cabinet today approved the Defense Ministry’s application to acquire used Sandown class minehunters from the United Kingdom.

According to the decision the Minister of Defense will start Government-to-Government negotiations at the result of which the number of vessels, concrete financial aspects and delivery conditions will be determined.

According to the defense forces' development plan the budget of replacing existing outdated vessels by Sandown-class mine hunters will be around 800 million crowns (EUR 51M.)

The mine countermeasures vessels currently in use in the Estonian Navy are more than 40 years old and prevent the Navy from achieving the capability objectives set out in the defense forces' development plan for the period until 2010.

In addition to domestic mine countermeasures capabilities the new minehunters guarantee extra capabilities for participating in NATO led activities.

The tender for acquiring mine hunters has been conducted in close co-operation with the Ministry of Defense and the General Staff. The preparation for the tender has lasted for three years during which the expert made thorough investigation of the market.

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Tewksbury MA December 21, 2005 - Raytheon Company has been awarded a $7.1 million US Navy contract to provide NATO SeaSparrow depot support.

The contract calls for Raytheon Integrated Defense Systems (IDS) to provide Performance Based Logistics (PBL), repairs, manufacturing, test and delivery of NATO SeaSparrow replacement parts for the Naval Inventory Control Point (NAVICP) in Mechanicsburg, Pa. This is a sole source order issued under year 3 of the NATO SeaSparrow PBL contract. There are two option years remaining on the contract. Years four and five are valued at approximately $7.7 million and $8.3 million, respectively.

The PBL contract gives IDS direct responsibility for receiving, warehousing and tracking government furnished property while meeting delivery and performance metrics. In addition, this PBL contract gives Raytheon IDS direct responsibility for administering and supplying all NATO SeaSparrow technical support for US Navy and Foreign Military Sales Cooperative Logistics Service Supply Agreement customers.

"In Raytheon IDS, our commitment includes focusing on customer needs throughout the product life cycle," said Dan Martin, vice president, IDS Surveillance & Sensor Systems. "This means helping to extend the life of our systems with product upgrades and reducing life cycle costs with whole life services and support."

Contract support will be performed at Raytheon IDS' Surveillance and Sensors Center in Sudbury, Mass., IDS' Integrated Air Defense Center in Andover, Mass., and at Raytheon Technical Services Company in Norfolk, VA.

Thales finalizes the sale of its optical components businesses to European private equity firm Candover

Thales and Candover today finalized the sale of Thales High Tech Optics (HTO) activities in the UK, US, Singapore, Germany and Hungary. Under the agreement, Candover has acquired the businesses, regarded as non-strategic for Thales, for a total consideration of €220 million, payable in cash. The sale has received approval by the regulatory authorities for competition (Germany and Austria) and foreign investments (USA).

Thales HTO is a world leader in designing and manufacturing high precision optical components and modules for both military and civil applications. Thales HTO is active in four main areas: infantry night vision, optical components, optical modules and optical coatings.

"With this sale, Thales has divested non-core businesses. We bought Avimo and Pilkington for their optronic system capabilities which will continue to be part of our key product portfolio but we do not believe it is in the best interests of these HTO businesses to remain under our ownership" stated Jean-Loup Picard Senior Vice President for Strategy, Research and Technology. "As demonstrated over the last four years, it has been our strategic intent to refocus the business on our core activities to strengthen our leading position as a large systems integrator and equipment and services provider in defense and security. This divestment will provide further considerable financial resources for both organic and external expansion in such areas."

"HTO fits Candover's investment criteria perfectly: It is a global leader in its field; it has a niche position in an industry with significant growth potential; enjoys long established relationships with its large customer base; and is led by an experienced and well respected management team" said Cyrille Chevrillon, Managing Director of Candover. "HTO provides us with a strong platform for industry consolidation and we look forward to working with management to identify acquisition and expansion opportunities."

These businesses have approximately 1,400 employees and generated revenues of €127 million in 2004.

Thales and Compagnie Nationale de Navigation Deliver Dupuy de Lôme to DGA

Paris December 22, 2005 - Thales and Compagnie Nationale de Navigation (CNN) officially handed over the Dupuy de Lôme intelligence vessel to their customer, the French defense procurement agency (DGA), on 15 December. The French Navy took possession of the ship the same day.

"With its ability to intercept strategic satellite communications, this vessel will help us to stay a step ahead in the fight against terrorism," said Minister for Defense Michèle Alliot-Marie on 28 October.

The Dupuy de Lôme owes its unique capability to a series of innovations, making it the only vessel of its kind in the world:

• It was designed from the outset as a signals intelligence vessel, the first project of its kind for the French Navy. The performance of the ship itself is thus directly linked to the performance of its operational intelligence systems.
• Its key capabilities are interception, eavesdropping, direction-finding and technical analysis of radio and radar signals, including the latest waveforms and the most advanced types of communications.
• It was classified by Bureau Veritas on the basis of commercial shipbuilding standards and is thus fully compliant with merchant shipping regulations.
• A high level of system automation makes it possible to optimize crew numbers: the vessel can be operated with a crew of 30.
• Living and work areas are designed for maximum crew efficiency and comfort.

The delivery also marks the beginning of the through-life support phase of the contract. This is another innovative aspect of the Minrem program: for the first time, the French Navy signed a five-year contract with Thales and CNN to guarantee 350 days of operational availability for the vessel.

The Minrem program is the first contract in France awarded to Thales and CNN as prime contractors for a complete vessel. Focused exclusively on achieving total customer satisfaction, the prime contract team has successfully met the cost control and on-time delivery requirements of the program despite a particularly tight program schedule.