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BAE Details New MRAP Orders Worth $715 Million

ARLINGTON, Virginia --– BAE Systems has received two follow-on delivery orders for Mine Resistant Ambush Protected (MRAP) vehicles totalling $715 million from the U.S. Marine Corps. Under the contracts, the company will build and deliver 1,024 Caiman-based Category I vehicles and 447 RG33 Category I and II vehicles.

With the two new contracts, the company now has firm orders to deliver 3,150 Category I vehicles and 1,927 Category II vehicles for the U.S. Army, the U.S. Marine Corps and Special Forces. When the additional awards are combined with previous contracts, the total value of BAE Systems’ MRAP contracts increases to $2.95 billion to build three of the five MRAP variants.

The Caiman award, worth $481.8 million, calls for the delivery of 1,024 base Caiman Category I MRAP vehicles. Aimed at defeating developing threats, this award fulfils the demand for vehicles with an enhanced protection configuration. The Joint Program Office anticipates ordering approximately $174 million worth of Engineering Change Proposals (ECP) to achieve high levels of survivability with enhanced mobility. Spares and increased contractor logistic support associated with this award are also anticipated. This brings the total value of the Caiman program to $1.77 billion since the program began in early 2007.

“This award reinforces the effectiveness of the Caiman in the field, its adaptability to the ever changing threat, supportability derived from its commonality with the U.S. Army’s Family of Medium Tactical Vehicles, and an exemplary delivery record,” said Chris Chambers, vice president of Medium/Heavy Vehicles. “We are proud to be working with the Joint Program Office and supply base to continue production of these vehicles.”

Production of the Caiman will be performed at BAE Systems facilities in Sealy, Texas and Fairfield, Ohio. Deliveries will commence in August 2008 and are expected to be completed by November 2008. The Caiman has also been selected by the Joint Program Office to undergo further tests under MRAP II contract arrangements.

Senator Kay Bailey Hutchison (Republican - Texas) said: "Our workers at BAE Systems in Sealy, Texas are some of the best this nation has. Their expert work to continually manufacture the MRAP at cost and on schedule has allowed them to deliver these crucial vehicles on a weekly basis providing for rapid fielding and critical protection for our troops on the ground. Congratulations to everyone at the plant in Sealy for this award."

"The MRAP has a strong record of saving troops' lives in Iraq and Afghanistan. We must continue providing service members the finest equipment possible, and Sealy should be proud of their role in its effort. This contract will allow the plant to continue producing a vehicle critical to the war on terror," said Senator John Cornyn (Republican - Texas), an Armed Services Committee member who recently traveled to Iraq and Afghanistan.

The RG33 order totals $234 million to produce 3 Special Forces Command vehicles, 51 ambulance variants and 393 RG33 Category II 6x6 MRAP variants.

“The proven track record of these RG33 vehicles validates BAE Systems commitment to providing protection for the men and women in uniform,” said Matt Riddle, vice president for Wheeled Vehicle Programs at BAE Systems. “The RG33 addresses the demanding requirements of today’s threats and BAE Systems facilities across the country are working around the clock to deliver these life saving vehicles as quickly as possible.”

Production for the RG33 will be performed at BAE Systems facilities in York, Pennsylvania; Aiken, South Carolina; and Fairfield, Ohio; with assistance from Letterkenny Army Depot, Spartan Motors Chassis’ facility in Charlotte, Michigan, and Demmer Corporation’s facility in Lansing, Michigan. Deliveries are expected to begin in August and be completed by November 2008.

More than 2,000 BAE Systems employees in the United States and 400 in South Africa are producing vehicles with the support of suppliers in more than 30 states across the United States. In addition, BAE Systems has a robust sustainment and fielding organization of 500 personnel on the ground in theater.

BAE Systems is the premier global defence and aerospace company delivering a full range of products and services for air, land and naval forces, as well as advanced electronics, information technology solutions and customer support services. With 97,500 employees worldwide, BAE Systems' sales exceeded £15.7 billion (US$31.4 billion) in 2007.

BAE Systems Receives Follow-On Orders for New Mine Resistant Ambush Protected Vehicles Worth $715 Million