BAE Systems Awarded $124.8 Million to Refurbish M113 Vehicles

ARLINGTON, Va.--(Business Wire)--
BAE Systems has been awarded $124.8 million in U.S. Army contracts to reset,
upgrade and maintain M113 vehicles.

Several contracts awarded to the company by the U.S. military cover repairs and
improvements on the combat-proven infantry vehicles. Specifically, awards
include:

* $87.7 million for the reset of 697 M113 vehicles. During the reset process,
BAE Systems will repair existing vehicles to pre-deployment condition and
provide some upgrades to enhance survivability, mobility and communications.
* $23.3 million for parts and materials. This covers the acquisition of
long-lead items needed for future repairs to M113 vehicles.
* $7.8 million for add on armor. BAE Systems will add additional protection to
120 M113 vehicles.
* $6 million for support and maintenance on M113 vehicles at Fort Hood, Texas.
This award will cover support to the U.S. Army`s 1st Cavalry Division.

"The M113 Family of Vehicles is an integral component of the Army`s Heavy
Brigade Combat Teams," said Joe McCarthy, vice president, Heavy Brigade Combat
Team Systems for the company. "BAE Systems will continue to support our troops
by repairing, maintaining and improving the M113 throughout the life cycle -
freeing soldiers to focus on their mission."

The M113 family of vehicles is one of the most widely used combat vehicles in
the world. More than 80,000 of the armored tracked vehicles have been produced,
including more than 40 variants. The M113 family is used by at least 44
countries. It can transport 12 troops and a driver and is capable of amphibious
operation, extended cross-country travel over rough terrain and high-speed
operation on improved roads and highways.

Work on these contracts will be performed by the existing workforce at BAE
Systems` facilities in Anniston, Alabama; Aiken, South Carolina and Fort Hood,
Texas.

The contracts are all managed by the Army`s TACOM Life Cycle Management Command.

About BAE Systems

BAE Systems is the premier global defense, security and aerospace company
delivering a full range of products and services for air, land and naval forces,
as well as advanced electronics, security, information technology solutions and
customer support services. With approximately 105,000 employees worldwide, BAE
Systems' sales exceeded £18.5 billion (US $34.4 billion) in 2008.

BAE Systems
Steve Field, +1 703 859 3479
Mobile: +1 703 298 9452
steven.h.field@baesystems.com
or
Jessica Pantages, +1 703 907 8261
Mobile:+1 703 439 0345
jessica.pantages@baesystems.com
www.baesystems.com

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