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BAE Sells Chaff-Flare Unit (Aug. 30)

NASHUA, N.H. --- BAE Systems North America completed the sale of its expendable defensive countermeasures business, located in Lillington, N.C., and East Camden, Ark., on 29th August 2002.

The negotiated $67.5 million cash sale to Esterline Technologies was originally announced July 15. Closing of the sale today followed completion of regulatory reviews and approvals.

At the Lillington facility, about 65 employees produce radar countermeasure chaff used by aircraft to help protect against radar-guided missiles. At East Camden, about 235 employees produce a variety of aircraft-dispensable flares designed to protect against infrared-guided missiles.

Mark Ronald, Chief Operating Officer, BAE Systems plc, and President and Chief Executive Officer, BAE Systems North America, said the sale was undertaken because the focus and strategy of BAE Systems North America is moving increasingly from that of a component provider -- as represented by the chaff and flare lines -- to systems integration.

"These facilities have been valuable and profitable business lines for BAE Systems. We believe the businesses and their talented workforce will be a superb fit with Esterline Technologies," he said.

BAE Systems and its predecessor companies began designing and producing passive expendables in 1971. During its 30-year history, a combined total of over 55 million chaff and flare cartridges have been manufactured for the U.S. military services.

BAE Systems employs nearly 100,000 people including Joint Ventures, and has annual sales of around $18 billion. The company offers a global capability in air, sea, land and space with a world-class prime contracting ability supported by a range of key skills.

BAE Systems designs, manufactures and supports military aircraft, surface ships, submarines, space systems, radar, avionics, communications, electronics, guided weapon systems and a range of other defense products.

BAE Systems North America is a high-technology U.S. company employing more than 22,000 Americans who live and work in 30 States and Washington, D.C. -- dedicated to solving our customers needs with both highly innovative and leading-edge solutions across the defense electronics, systems, information technology and services arenas.

Esterline Technologies is a leading specialty manufacturer for aerospace/defense markets.

BAE Systems Completes Sale Of Chaff And Flare Business To Esterline Technologies