BAE Systems Awarded $63.9 Million Contract for Prototype Paladin Integrated Management Vehicles

YORK, Pa.--(Business Wire)--
BAE Systems has been awarded a contract from the U.S. Army Tank Automotive &
Armaments Command for the procurement and fabrication of five prototype M109A6
Paladin Integrated Management (PIM) self-propelled howitzer vehicles and two
prototype M992A2 Field Artillery Ammunition Support Vehicles (FAASV). The total
contract value is $63.9 million.

"The Paladin provides critical fire support for soldiers in the Heavy Brigade
Combat Team," said Joe McCarthy, vice president and general manager, Heavy
Brigade Combat Team (HBCT) Systems for BAE Systems. "The PIM program will ensure
that this essential fire support system remains sustainable through its
projected life beyond the year 2050."

The Paladin PIM uses the existing M109A6 main armament and cab structure while
replacing outmoded chassis components with up-to-date components from the
Bradley Combat Systems to increase sustainability and commonality across the
HBCTs. Paladin PIM incorporates a state-of-the-art "digital backbone" and robust
power generation capability. PIM also integrates electric elevation and traverse
drives, electric rammer and a digital fire control system. The M992A2 FAASV
provides armor protected ammunition delivery for the M109A6 Paladin.

Design and engineering analysis work for the vehicle structure, automotive
systems and electric and vehicle electronics will be performed at BAE Systems
facilities in Pennsylvania, California, New York, Minnesota and Michigan as well
as U.S. government facilities at the Army Research and Development Center in
Picatinny, New Jersey. The remanufacture program for the Paladin fleet will be
performed in partnership with the Anniston Army Depot and at BAE Systems
facilities in York, Pennsylvania and Elgin, Oklahoma.

The M109A6 PIM is supported by the Army as a vital technology enhancement
program to sustain the M109 Family of Vehicles well into the future, and
maintain the combat capability of the HBCT.

About BAE Systems

BAE Systems is the premier global defense 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 $34.4 billion in 2008.

BAE Systems
Kelly Golden, +1 717-225-8487
Mobile: +1 717-818-7400
kelly.golden@baesystems.com
or
Shannon Smith, +1 703-907-8257
Mobile: +1 703-967-3854
shannon.n.smith@baesystems.com
www.baesystems.com

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