Agreement Between Hungary and Sweden Concerning the Lease of JAS 39 Gripen Now Finalized
(Source : Saab AB ; issued Dec. 20, 2001)


At a ceremony today in Budapest the negotiating parties - FMV (The Swedish Defence Materiel Administration) and ASIB (Acquisition and Security Investment Bureau) within the Hungarian Department of Defence concluded their work by signing the final agreement on leasing 14 JAS 39 Gripen for the Hungarian Air Force.

The agreement includes in broad terms the following:

--Leasing of twelve (12) single seat and two (2) twin seat aircraft during a period of ten (10) years commencing when the first aircraft is delivered to Hungary at the turn of the year 2004-2005. The agreement states that the Kingdom of Sweden grants Hungary the use of the aircraft during the lease period. The Republic of Hungary is responsible for the costs of technical adaptation of the 14 aircraft and also the total costs (i.e. training, operation and maintenance) for the use of the aircraft during the leasing period.

--Operational and tactical training for 15 pilots in three batches, technical training for 32 maintenance technicians, two (2) technicians for flight simulators and five (5) fighter controllers. This training is mainly carried out in Sweden. Swedish pilots and technicians will, based in Hungary, contribute with complementary training and also act as advisers during the lease period. Pilot training on the Gripen system carried out in Sweden is a transition training of experienced Hungarian fighter pilots, where some of them will get additional training to become instructor pilots for new generations of Hungarian pilots.

--Supply of maintenance equipment, spare parts, transport to and from Hungary of this equipment and logistics support during the lease period.

--Integrated Logistic Support (ILS) gives the Hungarian as well as the Swedish Air Force, through "pooling", access to all kinds of spare parts/exchange units for Gripen aircraft in whatever of the countries they are accessible.

--Supply of technical documentation and publications required.

--Technical adaptation of the aircraft to the same extent as for the main part of the Swedish fleet of aircraft comprising:
1. New Communication System
2. New Auxiliary Power Unit
3. New General Electronic Control Unit
4. New Full Authority Digital Engine Control

In addition to this, Hungary-specific changes will be provided for the following functionalities:

-- IFF System
--Instrument Landing System
--Have Quick Radios
--Revised weapon functionality for external weapons
--Imperial units on instruments for speed and altitude
--Markings and Placards
--Software Modification/Upgrade for Hungary

These adaptations will be developed by Gripen International/Saab Aerospace in Linköping and carried out by the Aircraft Workshops of the Swedish Armed Forces.

The agreement does not include armament for the aircraft with the exception for the internally mounted automatic gun in the single seat aircraft.

The aircraft will be delivered to Hungary in batches commencing during the fourth quarter of year 2004. The final batch will be delivered in June 2005.

Flight safety and airworthiness regulations of the country where operations are carried out will apply. The Swedish and the Hungarian regulations are basically equivalent and are harmonised with the regulations issued by ICAO.

The aircraft and thereto-related equipment remain Swedish property throughout the lease period. Swedish authorities will therefore have the possibility to carry out technical inspections on site in Hungary in order to be able to verify that the equipment is used and maintained as prescribed.

The agreement contains an option clause, which offers the Hungarian government the opportunity to procure the aircraft and thereto-attached equipment after negotiations at the end of the lease period.

The two parties have agreed that the value of the agreement shall be classified for commercial reasons. (ends)







Gripen Offset Agreement Signed With Hungary
(Source : Saab AB ; issued Dec. 20, 2001)


György Matolcsy, Hungarian Minister of Economy and Ian McNamee, managing director Gripen International, have today signed an offset agreement linked to the Hungarian government's lease of 14 Gripen multi-role fighters to meet its national, NATO and European defense needs.

The value of this agreement, signed in Budapest, will exceed Hungarian commitments connected to the aircraft lease agreement. Offset activities will be carried out within nine years from the effective contract date.

"We have already delivered pre-offset worth US $661 million to Hungary and are in discussions with over 40 companies to build on this existing commitment," states Ian McNamee

"The lease of Gripen will act as a catalyst for further economic growth in Hungary and create substantial employment opportunities through industrial partnerships, export promotion and work placement, among others."

Offset programs will be targeted to meet the business sector priorities identified by the Hungarian government. Gripen International has utilized the strengths of an international industrial network, which includes its shareholder companies BAE Systems and Saab plus others such as Volvo, Ericsson and Investor, one of the world's biggest industrial conglomerates, to develop and deliver long-term economic benefits for Hungary in support of the Gripen contract.

Gripen partners Saab and BAE Systems are world leaders in the delivery of offset to provide industrial co-operation to support defense sales. So far, programs in more than 30 countries have been implemented with a total value in excess of USD 22 billion.


BACKGROUND NOTES:

Gripen has been designed to meet the demands of all current and future threats, while at the same time meeting strict peace-time requirements for flight safety, reliability, training efficiency and low operating costs.

Gripen International is a company in which Saab AB of Sweden and the United Kingdom's BAE Systems have equal shares.

Already in service with the Swedish Air Force, which has ordered 204 aircraft (including 28 two-seaters), Gripen has also been ordered by the South African Air Force which has a requirement for 28 and selected to provide the national, NATO and European defense needs of the Czech Air Force for the next 30-40 years.

Gripen International has begun negotiations with the Polish government, which is looking to procure up to 60 new fighters and has submitted an offer to the Brazilian government for the supply of 24 new Gripen fighters. A response to the Austrian governments RFP (Request for Proposals) will be submitted in January next year, based on the supply of up to 30 Gripen.

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