Boeing Names Hoshstrasser to Lead Florida Operations

Boeing Names Hoshstrasser to Lead Florida Operations
ST. LOUIS, May 14, 2008 -- Boeing [NYSE: BA] has named Kevin Hoshstrasser site director for its Florida Operations at Kennedy Space Center, Fla. Hoshstrasser will manage the site and represent Boeing with key customers on the Space Coast. He continues his role as site director, Florida Space Shuttle Operations.

"Kevin is a natural choice to lead Boeing's Florida Operations," said Brewster Shaw, vice president and general manager, Space Exploration. "His extensive background leading the Florida Space Shuttle program will help to guide work force transition while positioning the site for the pursuit of NASA's future Constellation program opportunities."

Hoshstrasser joined The Boeing Company in 1983 and has progressed through positions of increasing responsibility in the Engineering, Operations and Quality organizations, including serving as director of Engineering and director of Safety and Mission Assurance. He holds a bachelor's degree in engineering from the University of Central Florida and a master's in business administration from the Florida Institute of Technology, and is a licensed Professional Mechanical Engineer.

Boeing Florida Operations comprises the Checkout, Assembly and Payload Processing Services and Space Shuttle Operations programs, supported by approximately 953 Boeing personnel. Boeing serves as NASA's prime contractor for the International Space Station and is also a partner in United Space Alliance, NASA's lead space shuttle contractor.

BAE SYSTEMS APPOINTS DAN WELCH TO LEAD ITS NORFOLK SHIP REPAIR BUSINESS

BAE SYSTEMS APPOINTS DAN WELCH TO LEAD ITS NORFOLK SHIP REPAIR BUSINESS

13 May 2008 | Ref. 156/2008

NORFOLK, Virginia -- BAE Systems has appointed Dan Welch as vice president and general manager of its Norfolk Ship Repair business. Welch succeeds Bill Clifford, who assumed the role of president, Ship Repair, in April after leading the Norfolk Ship Repair yard since 2005.

Welch will now head up the largest private sector shipyard in South Hampton Roads, Virginia, which is responsible for providing ship maintenance and modernization services for the U.S. Navy Atlantic Fleet and other government and commercial customers.

"Dan brings more than 35 years of hands-on, relevant experience in the maritime industry," said Clifford. "He has served as project manager of complex ship overhauls to the highest levels of leadership in ship maintenance, repair and construction operations. This experience and his character make him the right choice to lead Norfolk Ship Repair as it delivers the world class services it has been known for since 1915."

Welch joined BAE Systems as Ship Repair's Director, Government Business Development and Technical Proposals in January 2007 from Maersk Line, Limited, where he served as vice president, Vessel Life Cycle Management.

Prior to joining the private sector, Dan completed a distinguished 28-year career in the Navy, where he served in key leadership roles for Navy ship engineering, construction, modernization, conversion and repair. His last assignment was as Commanding Officer, Supervisor of Shipbuilding, Conversion and Repair in San Diego, and he also served in a similar capacity in Sturgeon Bay, Wisconsin.

Welch holds a Master's Degree in Mechanical Engineering from the Naval Postgraduate School and an undergraduate degree in Naval Architecture from the U.S. Naval Academy.

BAE Systems Ship Repair is the United States' leading non-nuclear ship repair, modernization and conversion company - focused on drydock and ship repair services for the U.S. Navy, other defense agencies and commercial customers. It has major operations in Norfolk, San Diego and San Francisco, California, and Hawaii.

Finmeccanica: Board of Directors approves first quarter results

Finmeccanica is Italy’s leading high-tech company, operating in the design and manufacture of helicopters, defence electronics, civil and military aircraft, aerostructures, satellites, space infrastructures, missiles. 

It plays a leading role in the European aerospace and defence industry, and participates in some of the biggest international programmes in the sector through well-established alliances with European and American partners. Finmeccanica also boasts significant manufacturing assets and skills in the Transports and Energy sectors. The Group is listed on the Milan Stock Exchange, and operates in Italy and abroad through subsidiaries and joint ventures. It
employs over 61,000 staff in total of which approximately 10,000 in UK, 3,500 in France and 1,600 in US. As part of its drive to maintain and build on its technological expertise, Finmeccanica spends 14% of its revenues on Research and Development.

Rome, 13 May 2008
Board of Directors approves first quarter results. Revenues rise 6%. New orders up 35%
Adjusted EBITA increases 13%. Net profit up versus 1Q07 excluding extraordinary

operations
· Finmeccanica again improved results in the first quarter of 2008. Revenues grew 6% year on year to EUR 2,916 from EUR 2,740 million
· Orders grew sharply (+35%) versus 1Q07. This increase mainly benefited Defence Electronics
and Security (+71%), Space (+74%), Defence Systems (+130%) and Energy (+203%)
· The order backlog grew by 10% versus 1Q07, equivalent to about three years’ production
· Adjusted EBITA grew 13% year on year to EUR 133 million. The greatest contribution
came from Helicopters (+18%), Defence Electronics and Security (+31%) and Defence
Systems (+125%)
· Net profit was EUR 126 million. Excluding the capital gain from the sale of STM shares, net
profit was EUR 72 million (+ EUR 53 million compared to the previous year, an increase of
+279%)
· Net debt fell compared to the same period last year. The level of debt is equal to 37% of
shareholder’s equity and remains below the maximum limit set by the ratings agencies
· The negative free operating cash flow figure should be considered in light of the seasonal
nature of the Group's businesses and is in any case an improvement over 1Q07
· Costs in research and development was equivalent to around 13.5% of revenues

Key 1Q 2008 figures (EUR million)
1Q2008 1Q 2007  Chg. Chg.% FY 2007
Revenues 2,916 2,740 176 6% 13,429
Adjusted EBITA (*) 133 118 15 13% 1,045
Adj. EBITA (*) margin 4.6% 4.3% 0,3 p.p. 7.8%
EBIT 123 109 (**) 14 13% 1,084
EBIT margin 4.2% 4.0% 0,2 p.p. 8.1%
Net profit 126 19 107 563% 521
FOCF -928 -1,107 179 16% 375
New orders 3,292 2,430 862 35% 17,916
ROI 16.2% 14.9% 1,2 p.p. 18.9%
VAE -74 -90 16 18% 227
Research and
development 394 402 -8 -2% 1,836
Order backlog 38,888 35,362 3,526 10% 39,304
Net debt 1,928 1,970 -42 -2% 1,158
EPS Adjusted(***) 0.15 0.03 0.12 399% 1.10
Headcount 61,396 58,685 2,711 5% 60,748

* Operating result before:
- any impairment in goodwill;
- amortisations of intangibles acquired under business combination;
- reorganization costs that are part of significant, defined plans;
- other exceptional costs or income, i.e. connected to particularly significant events
that are not related to the ordinary performance of the business.
** Items changed due to the retrospective change in the treatment of definedbenefit
plans.
*** Excluding extraordinary operations and minority interests.

Finmeccanica to acquire 11.1 % of Eurotech

Finmeccanica to acquire 11.1 % of Eurotech 

The Board of Directors of Finmeccanica has decided to enter the shareholding of Eurotech through the acquisition of around 11.1% of the Company’s share capital - equivalent to 3,936,461 shares - from a number of the company’s founders (Dino Feragotto, Roberto Chiandussi, Giorgio Pezzulli) at a price of €4.60
per share.

Finmeccanica will also sign a shareholder agreement with the current management of Eurotech – Chairman Roberto Siagri, Vice Chairman Massimo Mauri and Chief Technical Officer Giampietro Tecchiolli (“Manager Shareholders”) – who today hold around 10.7% of the share capital of the Company. The agreement will be communicated to the appropriate authorities and to the market in accordance with the terms foreseen by current regulations.

The entrance into Eurotech’s share capital will reinforce the strategic partnership initiated in July 2006 by means of an agreement for commercial and scientific cooperation, and will permit a further deepening of relations between the two Groups, particularly given the progress made by Eurotech in the development of innovative products as well as significant growth in new geographic areas of strategic importance to Finmeccanica such as the United States and Japan.

The operation is subject to the approval by the relevant regulatory authorities. Finmeccanica is assisted by Mediobanca, as financial advisor for the transaction.

Finmeccanica to Acquire DRS for US$5.2 billion (Euro 3.4 billion). Creates a New Leading Player in Defense Electronics with Balanced Global Presence

Finmeccanica to Acquire DRS for US$5.2 billion (Euro 3.4 billion). Creates a New Leading Player in Defense Electronics with Balanced Global Presence Rome (Italy) and Parsippany (NJ USA), 13 May 2008

Finmeccanica, S.p.A. (Milan: FNC), a world leader in the supply of electronics equipment and defense and security systems and services, and DRS Technologies, Inc. (NYSE: DRS), a leading supplier of integrated defense electronics products, services and support, today announced that they have signed a definitive merger agreement under which Finmeccanica will acquire 100% of DRS stock for US$81 per share in cash.

The transaction allows Finmeccanica to consolidate its international role as a key supplier of integrated systems for defense and security, entering the U.S. market as a key player. It further allows DRS to seek new business opportunities in the U.S. and abroad.

The transaction, valued at approximately US$5.2 billion (Euro 3.4 billion), inclusive of approximately $1.2 billion in net debt, following the conversion of DRS' convertible notes, represents a premium of 27 percent to DRS' closing share price on May 7, 2008; it is also a 32 percent premium over DRS' thirty-day average stock price traded on the NYSE.

The Boards of Directors of Finmeccanica and DRS have each approved the terms of the agreement.

DRS will operate as a wholly-owned subsidiary, maintaining its current management and headquarters. As is customary in this type of transaction, DRS and Finmeccanica will comply with all national security requirements and will propose to the Defense Security Service (DSS) that the company operate under a Special Security Agreement (SSA), with its own board of directors comprised predominantly of U.S. citizens holding security clearances and a government security committee. With increased business opportunities that will arise following the transaction, it is expected that DRS will expand its overall employment base.

"Today's transaction is a perfect fit; the complementary technologies and platforms will establish a new competitive player in defense and security markets in the U.S. and around the world," said Pier Francesco Guarguaglini, chairman and chief executive officer of Finmeccanica. "The merger furthers Finmeccanica's tradition of investing in the U.S. and supporting the American warfighter with superior technology and value."

"DRS' dramatic growth over the past five years and the premium provided through this acquisition will provide attractive returns for our stockholders", said Mark S. Newman, chairman of the board, president and chief executive officer of DRS. "This investment in DRS - with an increased emphasis on research and development - will mean the combined company will be able to compete for and win additional contracts around the world, accelerating growth and expanding opportunities at our facilities in the U.S.".

For DRS, the combination with Finmeccanica will enable an American company and brand to better compete in the global military and security market. The transaction will help the new company to bid and win largerscale projects in the U.S. and abroad.

For Finmeccanica, the transaction will boost its existing position as a top-tier competitor, enabling it to enhance the product and service solutions it provides to its customers. Finmeccanica's platforms and areas of expertise (helicopters; defense electronics and security; aeronautics; space; defense systems; energy; and transportation) wholly complement DRS' growing market penetration by its four primary business segments: Command, Control, Communications, Computers & Intelligence (C4I); Reconnaissance, Surveillance & Target Acquisition (RSTA); Sustainment Systems; and Technical Services.

Finmeccanica and its subsidiaries in Pennsylvania, New York, Texas, California, New Jersey, Kansas, Virginia, North and South Carolina have a rich history in the U.S., including its work for the U.S. government on programs such as the VH-71 presidential helicopter and the C-27J joint cargo aircraft. DRS will lead Finmeccanica's defense electronics efforts in the U.S. after the transaction closes.

Financing for the acquisition will be structured so as to preserve a solid capital structure, guarantee adequate financial flexibility to further support growth and deliver value creation to Finmeccanica's shareholders.

Finmeccanica will fund the acquisition with a Syndicated Loan Facility to be taken out by a combination of equity issuance, long-term debt issuance, and divestitures of its assets. Among these will be an IPO of AnsaldoEnergia. Terms and conditions will be determined upon completion of the transaction.

The transaction is subject to approval by the stockholders of DRS, the receipt of regulatory approvals and other closing conditions, including review by U.S. Antitrust Authorities, the Committee on Foreign Investment in the United States (CFIUS) and the Defense Security Service (DSS). The transaction is expected to close by the fourth quarter of 2008.

Goldman Sachs International, IntesaSanPaolo S.p.A., Mediobanca-Banca di Credito Finanziario S.p.A. and Unicredit Group are serving as Bookrunners and Mandated Lead Arrangers of the Syndicated Loan Facility. Sullivan & Cromwell LLP is acting as legal advisor to Finmeccanica in connection with the Syndicated Loan Facility. Linklaters and Legance are acting as legal advisors to the banks.

Lehman Brothers Holdings Inc. is serving as financial advisor to Finmeccanica, with Goldman Sachs International and Mediobanca providing a fairness opinion. Arnold & Porter LLP is serving as legal advisor to Finmeccanica. Bear Stearns & Co. Inc. and Merrill Lynch & Co. are serving as financial advisors to DRS and rendered fairness opinions to the DRS board of directors.

DRS' legal advisors are Skadden, Arps, Slate, Meagher & Flom LLP.

Thales Q1 2008 revenues and order intake

Thales Q1 2008 revenues and order intake

13 May 2008
Solid growth in revenues, up 7.3% on a like-for-like basis to EUR 2.3 billion at 31 March 2008. Very sharp rise in order intake, up 34% on a like-for-like basis to EUR 2.9 billion.

EXTRACT:

Scope of business - The 2008 financial year is the first to reflect the 'full effect' of the major strategic operations completed in 2007. Only the transportation and security businesses transferred from Alcatel-Lucent were consolidated as from 1 January 2007. The space businesses acquired from the telecoms group were consolidated as from the second quarter. Thales France's surface naval business sold to DCNS at the end of March were still within Thales's scope of business in the first quarter of the year. To analyse the Group's performance within its newly extended scope of consolidation, the organic change figures reported in this release have been calculated on the basis of the 2008 scope of consolidation.

The length of Thales's business cycles should also be taken into account when examining these figures, as billing schedules are to a large extent contingent on the achievement of specific technical milestones on each contract. Variations in full-year revenues can thus be markedly different from the trends observed in the first quarter alone, which are thus of limited significance. This is particularly true in the analysis of the figures for individual sectors.

Q1 2008 consolidated revenues

Consolidated revenues amounted to €2,308 million, compared with €2,193 million at 31 March 2007, representing overall growth of 5.3% (7.3% on a like-for-like basis).

Additions to the scope of consolidation since Q1 2007 have contributed €260 million to Q1 2008 revenues and correspond primarily to the space businesses acquired from Alcatel-Lucent (consolidated as from 1 April 2007). The businesses deconsolidated as from 31 March 2007 generated combined revenues of €156 million in Q1 2007. These correspond primarily to Thales France's surface naval business, sold to DCNS at the end of March 2007 (€90 million in Q1 2007), the Faceo facility management subsidiary divested in September 2007 (€22 million) and the electronic payment businesses divested at the start of 2008 (€30 million).

Exchange rate fluctuations from Q1 2007 to Q1 2008 resulted in an overall reduction in revenues of €101 million, primarily due to the translation into euros of sales by subsidiaries in other currency zones (-€81 million), mainly Thales UK (-€45 million) and Thales North America (-€28 million).

In Aerospace/Space, revenues increased by almost 14% on a like-for-like basis. The Space Division recorded particularly robust revenue growth (+22%), driven by sales of civil and military communication satellites. The Aerospace Division reported sales growth of 9% at constant exchange rates, with a marked increase in military business (+12%) due to a sharp rise in billings on ISTAR programmes (UAV-based tactical surveillance in the United Kingdom) and a 5% rise in civil activities.

In Defence, revenues increased by 7% compared with Q1 2007 on a like-for-like basis, with some activities reporting higher growth than others, largely correlated to the billing schedules on the various contracts in progress. The Land & Joint Systems Division recorded sales growth of 13%, driven in particular by the optronics and land systems business. Naval Division revenues were virtually stable (-1%) at constant exchange rates. The Air Systems Division recorded an increase of 4%, with sustained growth in missile systems and air operations and stable revenues in air traffic control equipment and systems.

In Security, revenues were virtually stable, with some variations between sectors. Revenues were higher in security systems for sensitive sites and infrastructure and in enterprise services. Billing levels were constant in rail signalling. Sales were down, however, in simulation and encryption-based security equipment, as well as in ticketing and passenger access control. In ticketing and access control, this slowdown is the result of difficulties encountered on certain complex contracts and is expected to continue into Q2, affecting operating margins in this sector for the first half of the year.

Consolidated revenues by destination

The decrease in sales to France is essentially due to defence contract schedules. Revenue growth in United Kingdom was severely affected by the weakening of the pound sterling from Q1 2007 to Q1 2008. On a like for like basis, sales to the UK rose by 21%, driven mainly by the military aerospace (UAV-based tactical surveillance programmes) and optronics businesses.
Sales to the Asia-Pacific region grew by more than 28% on a like-for-like basis, with sharp increases in revenues in all three of the Group's main business segments. Similarly, the strong revenue growth in the Middle East was driven by all three segments and was boosted in particular by the first billings on the major space contracts signed in 2007 (Yahsat et Arabsat).

Order intake at 31 March 2008

New orders booked in Q1 2008 were close to €3 billion, at €2,947 million (compared with €2,151 million in Q1 2007). This equates to an increase of 37% (34% at constant exchange rates and 2008 scope of consolidation). This figure includes two orders worth more than €100 million each . These corresponded to the launch of the FSTA tanker aircraft programme in United Kingdom (€320 million recorded by Thales UK) in partnership with the AirTanker consortium and the Lorads III contract (€153 million) to supply a next-generation air traffic control system for Changi Airport in Singapore. No new orders booked in the first quarter of 2007 were valued at more than €100 million. Growth in orders worth €100 million or less was also significant (+15%) compared with Q1 2007.

In Aerospace/Space, the sharp rise in new orders (+65%) is the result of strong performance in both sectors. The Aerospace Division, which books most of the orders placed with Thales under the FSTA programme, recorded an increase of 47%. The Space Division recorded an increase of 114%, with two satellites on order under the Eutelsat and Nilesat contracts and several orders under the Galileo programme.

In Defence, order intake also rose significantly (+40% at constant exchange rates), with particularly sharp rises recorded by the Air Systems Division (+80%), as a result of the Lorads III air traffic control programme mentioned above, and the Land & Joint Systems Division (+36%). New orders for the Naval Division increased by 6%.

In Security, order intake grew by a satisfactory 9% on a like-for-like basis, reflecting favourable developments in service activities as well as the order for simulators included in the FSTA tanker aircraft programme in the UK. In the ground transportation market, first-quarter order intake was comparable to Q1 2007.

Consolidated orders by destination

Growth was particularly strong in the United Kingdom and the Asia-Pacific region, where the two orders worth more than €100 million were booked. The more modest growth in North America reflects the impact of the weak dollar (at constant exchange rates, orders in this region rose by 14%).

Recent events

In March 2008, Thales sold its electronic payment terminal business to Hypercom Corporation of the United States in return for a cash payment of $120 million, with an additional amount of up to $30 million based on the performance of the divested business in 2008. This operation is expected to translate into a capital gain of approximately €50 million in the first half of 2008.

Financial position and outlook for 2008

Despite various currencies continuing to weaken against the euro, and a temporary slowdown in certain security activities which the company is addressing as a priority in 2008, particularly by refocusing on the new strategy of the domain and on strengthening project management, Thales confirms the 2008 objectives announced on publication of its 2007 consolidated financial statements: organic growth of approximately 6% within the new scope of business and a further improvement in operating performance to achieve an EBIT margin (income from operations after restructuring costs) of at least 7.25%, compared with 7% in 2007, based on income from operations of approximately 8% of revenues.

VT Group: PRELIMINARY ANNOUNCEMENT OF RESULTS FOR THE YEAR ENDED 31 MARCH 2008

PRELIMINARY ANNOUNCEMENT OF RESULTS FOR THE YEAR ENDED 31 MARCH 2008

VT Group plc, the support services and shipbuilding company, today announces its preliminary results for the year ended 31 March 2008. These results are prepared under International Financial Reporting Standards.

Results Summary - Continuing Operations


2008   2007


• Turnover*: up 20% to £1,201.0m  £1,004.6m

• Revenue Excluding Joint Ventures: up 20% to £1020.0m £852.5m

• Underlying Profit Before Taxation**: up 20% to £89.1m £74.2m

• Profit Before Taxation: up 33% to £71.3 £53.8m

• Adjusted Earnings Per Share (p)*** up 15% to 35.5p 30.9p

• Basic Earnings per share: up 27% to  32.2p  25.4p

• Final Dividend Per Share (p): up 11% to 13.1p  11.9p


* Includes share of revenue from equity accounted joint ventures and associates
** Excludes intangible amortisation arising from business combinations (£9.9m; 2007: £7.7m), share of joint venture taxation (£7.9m; 2007: £6.7m) and non-recurring charges in respect of exiting businesses (£nil; 2007: £6m)
*** Before intangible amortisation arising from business combinations and non-recurring charges in respect of exiting businesses
These definitions apply throughout this statement

Highlights:

Financial -

Turnover up by 20 per cent and underlying profit up by 20 per cent
Closing order book £4.9 billion (up 32 per cent from last year)

Strategic –

Continuing organic growth of the business
Expansion into new areas of engineering support services: nuclear and waste
Framework agreement signed for shipbuilding and naval support Joint Venture

Operational –

Contract signed for Future Strategic Tanker Aircraft (FSTA) programme - £1bn UK Military Flying Training System (MFTS) contract expected shortly Lewisham BSF contract signed, worth up to £325 million Good operating cash conversion


Outlook

VT Group Chairman Michael Jeffries said: “The Group continues to make excellent progress with strong results shown by all our divisions.

“Our strategy of focusing on developing engineering support businesses has seen us move into new sectors of high growth activity through nuclear services and waste management.

“We continue to grow the order book and we have achieved significant milestones in aviation support with the signing of the Future Strategic Tanker Aircraft (FSTA) programme and the Military Flying Training System expected shortly.

“BVT Surface Fleet Limited, our Joint Venture in shipbuilding and naval support with BAE Systems, is ready to be implemented as soon as the Government confirms the placement of the manufacturing contract for the Royal Navy’s new aircraft carriers (CVF).

We have a well planned strategy to grow our engineering support services activities and we are also in a good position to benefit from excellent visibility of earnings, strong operating cash flow and good order pipeline. The Board remains confident for the current year and beyond.”

First Boeing P-8A Poseidon Gets Its Wings

First Boeing P-8A Poseidon Gets Its Wings
ST. LOUIS, May 08, 2008 -- Boeing [NYSE: BA] joined the wing assembly and fuselage of the first P-8A Poseidon for the U.S. Navy on May 1 in Renton, Wash. Boeing Integrated Defense Systems (IDS) and Boeing Commercial Airplanes (BCA) are working together to build the P-8A, a military derivative of the 737-800, on a new final assembly line. The factory's third line takes advantage of the proven efficiencies, manufacturing processes and performance of the highly reliable Next-Generation 737.

The next major P-8A assembly milestone will be engine installation this summer. The Boeing-led Poseidon industry team remains on track for delivery of the first test aircraft to the Navy in 2009. Under the current System Development and Demonstration contract, the team will build five test vehicles: three flight-test and two ground-test aircraft.

The Navy plans to purchase 108 P-8As to replace its fleet of P-3C aircraft. Initial operational capability is slated for 2013. The P-8A will provide increased capability in long-range anti-submarine warfare, anti-surface warfare, intelligence, surveillance and reconnaissance.

NEW STUDY UNVEILS THE CONTRIBUTION OF BAE SYSTEMS’ CLYDE SHIP YARDS TO THE SCOTTISH ECONOMY INCREASED BY 50% IN 2007 TO £392 MILLION

NEW STUDY UNVEILS THE CONTRIBUTION OF BAE SYSTEMS’ CLYDE SHIP YARDS TO THE SCOTTISH ECONOMY INCREASED BY 50% IN 2007 TO £392 MILLION

12 May 2008 | Ref. 153/2008

Glasgow, United Kingdom – A study by Fraser of Allander Institute has unveiled that the contribution of BAE Systems’ Surface Fleet Solutions business to the Scottish economy increased by £139 million to £392 million in 2007 when compared to its contribution in 2006.

The study, commissioned by BAE Systems, also reveals that in 2007, for every 100 people employed by the Company on the Clyde, a further 68 jobs are supported in other industries in Scotland, bringing the total number of jobs supported by the Clyde yards to 5,364.

Key findings:
• The 3,194 jobs provided by BAE Systems at Govan and Scotstoun support an additional 2,170 jobs in other industries in Scotland. BAE Systems therefore supports a total of 5,364 jobs across Scotland as a whole.
• The contribution to Scottish Gross Domestic Product or Gross Value Added (GVA) created by the Govan and Scotstoun operations stands at £107 million.
• The GVA of £107 million supports an additional £58.6 million worth of output in other industries in Scotland.
• The company supports £132.2 million worth of wages across Scotland.
• For every £100 paid directly in wages to BAE Systems’ employees; £53 worth of wage income are supported elsewhere in Scotland.

Commenting on the study’s findings, managing director of BAE Systems Surface Fleet Solutions Vic Emery said; “This research shows that the industry continues to thrive in Scotland and the thousands of people who benefit from the existence of shipbuilding on the Clyde continues to grow year on year.

“The level of growth we have seen in 2007 is substantial and I am delighted that our business has had such an extensive, positive impact on the country’s economy.

“While the effect on the Scottish economy is hugely significant, the pride and social impact of the Clyde yards cannot be underestimated.”

General Dynamics’ Chabraja to Remain Chairman through May 2010; Board Names Johnson to Succeed as CEO in

General Dynamics’ Chabraja to Remain Chairman through May 2010; Board Names Johnson to Succeed as CEO in
June 2009

FALLS CHURCH, Va. – General Dynamics (NYSE: GD) announced today that Nicholas D. Chabraja, the company’s chairman and chief executive officer, has advised the board that, consistent with his employment agreement, he will step down as chief executive officer on June 30, 2009. Mr. Chabraja will continue with the company as chairman of the board of directors through the annual meeting of shareholders in May 2010.

To ensure continuity in the management and operation of the company, the board of directors today formally approved a succession plan for the position of chief executive officer. The board announced that Jay L. Johnson, 61, currently a member of the board of directors of General Dynamics and chief executive officer of Dominion Virginia Power, will become vice chairman of the board and an executive officer of the company on September 2, 2008. He will become chief executive officer on July 1, 2009, following Mr. Chabraja’s retirement from that position. Mr. Johnson has been a member of the General Dynamics board since 2003.

In announcing the board’s action, Chabraja said, “The board and I are extremely pleased to have Jay join the company’s senior management team. He has been a trusted advisor and member of our board for five years. His experience as a successful corporate executive at Dominion and Chief of Naval Operations of the U.S. Navy prepares him to be a successful and effective leader of General Dynamics.”

Chabraja continued, “In my role as chairman, I will continue to provide overall strategic and organizational guidance and will assist management as requested.”

“I am pleased to join the General Dynamics management team,” said Johnson. “I’m moving from one great company to another, and am excited about this opportunity to expand my relationship with this tremendous corporation.”

Johnson has been chief executive officer of Dominion Virginia Power since 2007 and executive vice president of Dominion Resources, Inc., since 2002. He served as president and chief executive officer of Dominion Delivery from 2002 to 2007 and a senior vice president of Dominion Energy, Inc., from 2000 to 2002. Prior to joining Dominion, Johnson had a distinguished career as an officer in the U.S. Navy. He retired as an Admiral in July 2000 after serving as Chief of Naval Operations. Johnson is a 1968 graduate of the U.S. Naval Academy.

WATCHKEEPER UAV undertakes maiden flight

WATCHKEEPER UAV undertakes maiden flight
06 May 2008

Thales UK today announces the successful first flight of the WATCHKEEPER unmanned air vehicle (UAV) platform.
The WATCHKEEPER UAV, flown for the first time on 16 April from Megido airfield in northern Israel, is the first produced air vehicle, designed and built to meet the demanding requirements of the UK Ministry of Defence (MoD).

WATCHKEEPER will provide the UK armed forces with an essential intelligence, surveillance, target acquisition and reconnaissance (ISTAR) capability, and will be a key component of the UK's network enabled capability (NEC). Thales UK, as Prime Contractor for the WATCHKEEPER programme, will deliver equipment, training and facilities, with the capability coming into service from 2010.

Commenting on this major programme milestone, Richard Deakin, Managing Director of Thales' aerospace business in the UK, says: "Thales UK's WATCHKEEPER programme is on track and has been steadily moving forward since June 2007 when the company unveiled its final configuration following a Critical Design Review undertaken by the MoD. We have made tremendous progress since the contract was signed in 2005 and all the customer-agreed programme milestones have so far been met on or ahead of schedule."

Looking forward to the plans for the rest of the year he adds: "2008 is an important year for the programme as it will also see the testing and integration of the automatic take-off and landing (ATOL) system, the I-Master radar and EO/IR/LTD payloads*. The I-Master radar flight trials have been extremely encouraging. The SAR imagery seen in the initial trials is outstanding and testing the GMTI functionality has just commenced. The combination of these sensors operating in a networked manner will certainly provide a transformational step in ISTAR capability for the UK armed forces."

Production of the WATCHKEEPER system will take place at U-TacS (UAV Tactical Systems Ltd), the Thales UK and Elbit Systems joint company, based in Leicester.


Notes to editors
The WATCHKEEPER system consists of the unmanned air vehicle, with a dual-payload configuration. This includes day/night electro-optic sensors, laser target designator, as well as advanced synthetic aperture radar/ground moving target indicator radar. The ISTAR information and images are provided to a network of highly mobile ground control stations and remote viewing terminals where UK military operators will control the whole mission and interface within a network-enabled environment. High resolution optical and radar imagery will be exploited and disseminated to provide valuable intelligence for operational commanders.
The WATCHKEEPER air vehicle is fully autonomous, including ATOL, and has a de-icing capability, to expand its ability to operate in all weather operational environment. The system is capable of rapid deployment and operations anywhere in the world. WATCHKEEPER will support the information requirements of all three services.

SAR - Synthetic Aperture Radar
GMTI - Ground Moving Target Indicator
EO - Electro Optical
IR - Infra-red
LTD - Laser Target Designator
ATOL - automatic take-off and landing

Northrop Grumman KC-45: Why We Won - Past Performance

Northrop Grumman KC-45: Why We Won - Past Performance

Highlighting Reasons the U.S. Air Force Selected the KC-45 Tanker as Best for Our Men and Women in Uniform

WASHINGTON - May 5, 2008 - The U.S. Air Force found Northrop Grumman Corporation's (NYSE:NOC) bid to build the next generation of aerial refueling tankers superior to Boeing's in four of the five most important selection criteria. Despite this fact, the losing bidder wants the Government Accountability Office to overturn the Air Force decision to award the contract to Northrop Grumman even though the Air Force conducted what even Boeing described as a fair, open and transparent bidding process. Here is another reason Northrop Grumman won, drawn from a list of facts included in a redacted version of a protected Air Force selection document.

Past Performance
A contractor's past performance on related projects is a critical element in the Air Force's assessment of competing proposals. Because replacing America's fleet of aerial refueling tankers is the number one acquisition priority for the Air Force, it paid special attention to Boeing's assertions that it could complete the contract on time and on budget. While Boeing likes to claim that it has a better track record than Northrop Grumman in building tankers, the Air Force determined that Boeing's past record actually meant it was riskier to do business with Boeing than Northrop Grumman.

According to an Air Force document assessing the two bids, in program management " ... There was a notable difference between the two offerors. Northrop Grumman received a rating of 'Satisfactory Confidence,' while Boeing received a rating of 'Little Confidence.'"

A rating of little confidence means the Air Force concluded that "Based on the offeror's performance record, substantial doubt exists the offeror will successfully perform the required effort." The reasons for the Air Force's poor rating of Boeing were redacted for business competition reasons.

The Air Force stated that Northrop Grumman received a superior rating because of its "Excellent and satisfactory (risk) ratings on six (other) contracts." The Air Force document concluded "The higher confidence rating for Northrop Grumman ... was a discriminator" because "This difference in the program management provides better overall confidence. Northrop Grumman (was) more advantageous."

It is worth noting that while Northrop Grumman has built, flown and tested a prototype aircraft and conducted a successful fuel transfer through its boom, Boeing has not yet built, flown or tested its proposed new design KC-767 aircraft. In addition, Boeing has been late in delivering tankers to Italy and Japan. These aircraft are significantly different from the design proposed to the Air Force.

About the KC-45
The KC-45 Tanker aircraft will be assembled in Mobile, Ala., and the KC-45 team will employ 48,000 American workers at 230 U.S. companies in 49 states. It will be built by a world-class industrial team led by Northrop Grumman, and includes EADS North America, General Electric Aviation and Sargent Fletcher.

Boeing Names Keating to Lead Public Policy and Washington, D.C. Operations

Boeing Names Keating to Lead Public Policy and Washington, D.C. Operations
CHICAGO, May 08, 2008 -- Boeing [NYSE: BA] Chairman, President and CEO Jim McNerney has named Timothy J. Keating senior vice president for Public Policy, effective June 2. He succeeds Tod R. Hullin, who earlier this year announced his plans to retire from Boeing by the end of 2008.

Keating, 46, currently serves as senior vice president, Government Relations, for Honeywell. At Boeing, he will lead company-wide public policy efforts, including all U.S. federal, state and local government liaison operations. He will report to McNerney from Boeing's Washington, D.C. office and join the company's Executive Council.

"Tim brings to Boeing an impressive record of government service and extensive hands-on experience in government affairs within the aerospace industry," said McNerney. "With his leadership, we will ensure that our company's interests, and our industry's interests, continue to be represented thoroughly and aggressively in Washington, D.C., and with state and local governments throughout the country."

Hullin, who turns 65 this month, joined Boeing in 2003 as senior vice president, Communications and moved in 2006 to his current position. McNerney said that he leaves behind an impressive record. "Tod's skill, strategic perspective and leadership have been crucial to Boeing as we generated remarkable momentum through some challenging times. His contributions are lasting," McNerney added.

Over the next few months, Hullin will work with McNerney and Keating to ensure a smooth transition and continued progress on key Boeing issues and programs.

Prior to joining Honeywell in 2002, Keating was chairman of the board and managing partner at Timmons and Company, a Washington lobbying firm. He also brings business advocacy experience as vice president, Federal Affairs, for the American Council of Life Insurers.
Keating served in the Clinton administration as special assistant to the president and staff director for Legislative Affairs. He also served as director for Government Affairs and co-director of Credentials for the 1996 Democratic National Convention in Chicago, the 1997 presidential inaugural committee, and the 2000 Democratic National Convention in Los Angeles. He joined the Clinton administration in 1992 by serving on the transition team preparing the president's cabinet for Senate confirmation.

Keating is a graduate of the University of Scranton, with a B.S. in political science. He was born in Scranton, Pennsylvania.

BAE Systems: INTERIM MANAGEMENT STATEMENT FOR THE PERIOD FROM 1 JANUARY 2008 TO 6 MAY 2008

INTERIM MANAGEMENT STATEMENT FOR THE PERIOD FROM 1 JANUARY 2008 TO 6 MAY 2008

07 May 2008 | Ref. 148/2008

BAE Systems plc today issues its first interim management statement in accordance with the requirements of the UK Listing Authority's Disclosure and Transparency Rules. The statement relates to the period from 1 January 2008 to 6 May 2008.

BAE Systems continued to progress well in the period, building on the strong performance of 2007 and with the Group's large order book providing excellent forward visibility. Trading for the period has been consistent with management expectations at the time of the preliminary results announcement on 21 February 2008. Additional order intake of approximately $0.8bn (£0.4bn) received in the period for mine protected vehicles, has further enhanced the near term outlook for the Land & Armaments business. As announced on 3 April 2008, a reduction in the UK military aircraft workforce is to be undertaken to reflect anticipated changes in the nature of the workload in that sector; the resultant costs will not impact our outlook for the year.

For the Group as a whole, a further year of good growth is anticipated for 2008.

The sale of the Surveillance and Attack business for $240m (£122m) was completed in the period, generating a profit on disposal of £61m.

In December 2007 and January 2008 the Group announced the proposed acquisitions of MTC Technologies Inc and Tenix Defence, respectively, for a combined consideration of £0.6bn.These acquisitions are progressing towards completion.

The Board's Nominations Committee is leading the search for suitable candidates to succeed Mike Turner as Chief Executive after he retires from the Company in August.

The independent committee (chaired by Lord Woolf) appointed by the Board to study and report on the status of ethical policies and processes in the Group reported at the end of the period.The committee's findings will now be
evaluated and acted upon.

AGM

The Company's Annual General Meeting will be held today at 11.00am at the Queen Elizabeth II Conference Centre, London. An announcement detailing the voting on the resolutions put to the meeting will be issued later today.

BAE SYSTEMS WELCOMES PUBLICATION OF WOOLF COMMITTEE REPORT

BAE SYSTEMS WELCOMES PUBLICATION OF WOOLF COMMITTEE REPORT

06 May 2008 | Ref. 144/2008

BAE Systems welcomes the publication today, of the Woolf Committee Report.

A full copy of the Report is available at www.baesystems.com/woolfcommittee.

“The Committee’s publication of this Report is an important step towards BAE Systems’ objective of achieving benchmark standards of governance in the conduct of its day-to-day business,” states Dick Olver, Chairman, BAE Systems.

“We will carefully study the Report’s contents to understand the detail of its conclusions and remain committed to acting on all the Committee’s recommendations,” adds Mike Turner, Chief Executive.

More detailed feedback, together with associated actions and how and when these will be communicated, will be provided by the end of July.

HMS Daring tracks Typhoon in second sea trials

Daring tracks Typhoon in second sea trials
An Equipment and Logistics news article 2 May 08

Daring, the first of the Royal Navy's Type 45 Destroyers, has successfully tracked a Typhoon aircraft from Manchester to the west coast of Scotland as part of the second stage of her sea trials.

During the five week trial the 7,350 tonne vessel has completed all power and propulsion testing, as well as a series of tests in open water off the west coast of Scotland which included extensive Long Range Radar and navigation systems trials, medium calibre gun blast trials and weapon alignment tests.

Combat System trials have seen good performance across a wide range of equipment and numerous aircraft sorties have been flown to test the radar system including the successful tracking of the Typhoon.

During the trials Daring has performed a speed increase of 0 to 27 knots in two minutes, figure-of-eight turns that left the decks 14 degrees from horizontal, and a standstill stop in just five and a half lengths.

She has performed beyond all expectations and will complete the trials today, Friday 2 May 2008, two days ahead of schedule.

Commander David Shutts, Senior Naval Officer, Daring, has been with her from the start. He said:

"She is just simply a marvellous ship. As far as air defence goes, I would say she is the best in the world."

BAE Systems is the prime contractor for the delivery of Daring and speaking from onboard, BAE Systems Surface Fleet Solutions' Managing Director, Vic Emery, said:

"Once again, Daring has proved that she is a state-of-the-art vessel and a force to be reckoned with. To fully complete this set of trials with a 100 per cent success rate is a great achievement, but to do so two days ahead of an already ambitious schedule.

"The power and propulsion trials are now complete and the firing and integration trials have proved to be a resounding success. We remain on course to hand over the ship to the Royal Navy on schedule in December.

"This ship has continued to exceed all expectations and I am delighted with the results that have been achieved by the Royal Navy personnel, our partners and BAE Systems staff who have crewed the ship for the last 33 days."

The Type 45 Anti-Air Warfare Destroyers are the most advanced ships of their type in the world to date and will provide the backbone of the Royal Navy's air defences for much of the first half of the 21st century.

Commander Shutts added:

"It has never been anything less than a pleasure to work with BAE Systems and the Royal Navy can look forward to taking delivery of one very special ship."

During the first stage of sea trials, Daring sailed approximately 4,100 miles, using on average 35 cubic metres of fuel per day, and refuelled just once. This is equivalent to a quarter of the fuel consumption of a Type 42 and of a Type 23 despite Daring being 50 per cent larger than both classes of ship.

She is the first front-line warship to use all-electric propulsion and her gas turbines produce 47MW of electricity, enough to power 70,000 homes – or the City of Dundee.

A third set of sea trials for Daring is planned for August 2008.

Rheinmetall: profitability again strengthened

05/05/2008

Rheinmetall: profitability again strengthened

Solid start into fiscal 2008
Sales rising by €11 million to €922 million
EBIT lifted by 10 percent to €49 million
Net income improving from €22 million to €26 million
EpS boosted from €0.60 to €0.71

Düsseldorf-based Rheinmetall AG got off to a good start in fiscal 2008 and again strengthened profitability within the Group. Compared with Q1/2007, group sales in the first three months of 2008 climbed €11 million to €922 million. EBIT mounted 10 percent to €49 million, the EBIT margin jumping accordingly from 4.8 to 5.3 percent.

Earnings before taxes (EBT) improved 13 percent from €31 million to €36 million, net income rose from €22 million to €26 million, an 18-percent advance. Rheinmetall has thus laid the foundations for achieving the forecasted improvements in both sales and EBIT for all of 2008.

Klaus Eberhardt, Rheinmetall AG CEO: "Fiscal 2008 has got off to a good start. The Defence sector has managed to seamlessly continue its very good year-earlier performance and at Automotive, given an altogether stable development, we have managed to slightly boost profitability. We are therefore confident that 2008 will be another successful year for the Rheinmetall Group."


Order intake outgrowing sales
At €941 million, Q1/2008 order intake again exceeded sales. The high order intake of €1,135 million in Q1/2007 had been largely influenced by one contract worth around €200 million alone for the Air Defence division. At March 31, 2008, order backlog was still very high at €3,275 million.


Automotive with a generally stable performance
The Automotive sector generated sales of €576 million in Q1/2008, around the year-earlier level of €583 million. The €12 million decline in sales at the US production plants of Rheinmetall Automotive due to the weak US market, and the fewer number of working days versus Q1/2007, were almost offset through organic growth.

Q1/2008 EBIT matched the year-earlier level; the EBIT margin climbed slightly to 5.9 percent. Good progress was shown by the Pistons division, which in the United States reported sales of €41 million and an EBIT of €2 million.


Defence with appreciable EBIT hike
The Defence sector managed to continue its very good year-earlier performance in the period January to March 2008; sales climbed €18 million or 5 percent to €346 million.

Defence's EBIT showed a significant improvement of €7 million to €18 million; the EBIT margin jumped accordingly from 3.4 to 5.2 percent.


Important strategic moves taken at Defence
During the period, Rheinmetall initiated a number of important strategic moves in order to expand internationally its Defence sector. February 2008 saw an agreement for the intended 51-percent stake in South Africa's Denel Munitions (Pty) Ltd., which will not only expand the product range in Weapon and Munitions but will also facilitate access into new markets worldwide. With the complete takeover of the Dutch tank builder Stork PWV B.V., Defence has extended its leadership role in the production of ordnance for Europe's armies. Rheinmetall is thus acquiring the majority stake in the presently biggest cross-border military vehicle program in Europe encompassing 472 Boxer armoured vehicles to be delivered to the German and Dutch armed forces starting from 2010.

Prospects: growth and earnings targets for 2008 reaffirmed
Following the solid start into 2008, Rheinmetall is reaffirming its forecasts for all of the fiscal year. Assuming a sustainably strong operating performance and against the background of the present economic and industry prospects Rheinmetall for the rest of the year expects to show organic growth and an EBIT of between €280 million and €290 million (2007: €270 million).

The medium-term goals of a 9-percent EBIT margin and a 20-percent ROCE by not later than 2010 are reconfirmed.

Rheinmetall takes over Stork PWV, expanding its leading role in European army technology

03/17/2008

Rheinmetall takes over Stork PWV, expanding its leading role in European army technology

The Rheinmetall Group of Düsseldorf has taken over Stork PWV B.V. from its parent company Stork N.V. of the Netherlands. The takeover strengthens Rheinmetall's position as Europe's leading supplier of systems and equipment for ground forces. It also reinforces Rheinmetall's role in the Boxer programme, one of the largest armoured vehicle projects in Europe.

The parties have agreed not to disclose the purchase price. The acquisition still requires approval from the relevant competition authorities.

Rheinmetall currently holds a 14% stake as a joint venture partner in Artec GmbH of Munich, the company that developed the Boxer armoured vehicle for the German and Dutch armed forces. The takeover, which includes PWV's share in Artec, increases Rheinmetall's interest in the company to 64%.

Stork PWV is responsible for the Dutch share of the Boxer programme, which is worth around €500 million and encompasses the development and production of 200 vehicles for the Royal Netherlands Army. Rheinmetall is producing 85 of the 272 vehicles ordered by Germany's Bundeswehr, representing €212 million for the Düsseldorf-based company, which is also in charge of supplying the electronic components in all of the German and Dutch vehicles, generating an additional €60 million in sales.

The acquisition increases Rheinmetall's weight in what is currently Europe's largest cross-border military vehicle project – also with respect to future Boxer export sales. At the same time, Rheinmetall is strengthening its market position in the Netherlands with a view to supporting the Royal Netherlands Army in upgrading its capabilities and further enhancing its operational readiness. Thanks to close bilateral cooperation in the defence technology domain, the Dutch armed forces operate numerous German-built military systems, including the Leopard 2 main battle tank, the PzH 2000 self-propelled howitzer and the Fuchs/Fox armoured transport vehicle.

Delivery of Boxer vehicles to the Dutch Army will begin in 2011 and continue until the end of 2016. The first Boxers are slated to reach the Bundeswehr as early as 2009.

Weighing in at 32 tons, the Boxer armoured transport vehicle is a trend-setting, highly mobile, wheeled vehicle with state-of-the art protection, whose modular design offers itself to a wide variety of mission-specific system versions.

The Boxer forms an integral part of the Dutch Army's and Bundeswehr's "Future Soldier" infantry modernization programmes. It is destined to supersede a variety of different protected vehicles to varying degrees.

Rheinmetall intends to take a stake in South Africa's Denel Munitions

02/08/2008

Rheinmetall intends to take a stake in South Africa's Denel Munitions

Germany's Rheinmetall Group today (8 February) signed an agreement with Denel (Pty) Ltd, indicating its intention to take a majority equity stake in Denel Munitions. The agreement was signed in Pretoria by Mr Armin Papperger, President Rheinmetall Waffe Munition and Denel's Group Executive, Ms Lana Kinley.

The Düsseldorf-based Rheinmetall Group is currently negotiating with the Denel Group for an interest in Denel Munitions, a business division of Denel located in the Western Cape and North West province.

As part of continuing moves to internationalize its defence technology operations, Rheinmetall plans to take a 51% stake in the South African munitions entity. The agreement signed today is subject to approval from the competition authorities and still tied to various suspensive conditions that need be resolved before the transaction is finally concluded.

In embarking on this planned buyout, Rheinmetall wishes to expand its market presence and highlight its role as a leading supplier of systems and equipment for ground forces.

"The product ranges and market penetration of the two companies complement each other perfectly. With this planned acquisition of Denel Munitions, we want to expand our core business as well as penetrate new markets with major strategic potential", declares Klaus Eberhardt, Chairman of the Executive Board of Rheinmetall AG.

Rheinmetall is a premium supplier of ammunition for fighting vehicles and infantry weapons as well as propellant systems for large-calibre ammunition. Denel Munitions possesses special expertise in artillery and mortar systems.

Whereas the bulk of Rheinmetall business is with NATO countries, Denel Munitions is well established in South Africa, Asia, the Middle East and South America. Rheinmetall and Denel Munitions will in future be able to serve their main markets with a complete portfolio of products.

"This agreement with Rheinmetall ties in with Denel's turnaround strategy," Lana Kinley explained. "In fact, as one of the crucial pillars of the strategy, equity partnerships with major global players will provide the Denel businesses like Munitions with world-class technology and skills, operational improvements, market access and scale to best serve its clients."

During the course of restructuring, Denel Pty Ltd (state-owned armaments group), Denel Munitions was spun off as an independent business unit. Denel Munitions has approx 2,000 employees at five locations and annual sales of around R 900 million (€90 million). The holding company, Denel Pty Ltd of Pretoria, will continue to hold a minority stake of 49% in Denel Munitions.

In terms of the agreement Rheinmetall and Denel will boost investment in the South African company as soon as Rheinmetall's acquisition of its equity stake is finalized. This will modernise the South African business operations and improve its production structures and flows, thus setting the stage for solid, profitable growth.


About Rheinmetall Defence
One of the most respected and best-known names in the international defence and security industry, Rheinmetall Defence is the defence technology arm of the globe-spanning Rheinmetall Group of Düsseldorf, Germany. Rheinmetall Defence has some 7,000 employees worldwide and generates annual sales of approximately €1.8 billion.

As Europe's leading supplier of systems and equipment for ground forces, the company offers a wide array of platforms and components. Rheinmetall Defence is synonymous with longstanding experience and innovation in the development and production of armoured vehicles, weapons and ammunition as well as air defence products and defence electronics. But its expertise also extends to air force and naval applications and internal security technology.

In the weapons and munitions segment, Rheinmetall Defence supplies a comprehensive range of medium- and large-calibre products. The spectrum extends from guns for the Eurofighter and medium-calibre automatic cannon for naval vessels and infantry fighting vehicles to the main armament of the Leopard main battle tank.


About Denel (Pty) Ltd
As a state-owned profit-driven corporation registered under the South African Companies Act, Denel groups together several defence and aerospace divisions. The company's defence capability dates back more than 50 years when some of its manufacturing plants were established.

Denel's design, development, engineering and integration capabilities in integrated artillery systems allow it to offer advanced combat systems, turrets, infantry weapons, including long-range mortars, a comprehensive range of small, medium and large calibre ammunition, and sophisticated aerospace systems.

In restructuring the Group towards sustainable profitability, its owner, the South African government, agreed to its unbundling and the resultant formation of stand-alone companies. Equity in these was to be offered to major local and global defence industry players, who could take either a majority shareholding or a minority stake, with the remainder to be held by the state-owned Denel (Pty) Ltd as holding company.

Boeing and Iraq Announce Airplane Order, Discuss Support for Aviation Modernization

Press Release Source: Boeing

Boeing and Iraq Announce Airplane Order, Discuss Support for Aviation Modernization
Monday May 5, 11:34 am ET

BAGHDAD, Iraq, May 5 /PRNewswire-FirstCall/ -- Boeing (NYSE: BA - News) and the Government of Iraq today announced an order for 30 Boeing 737-800 commercial airplanes, the first step in re-establishing that country's scheduled commercial aviation operations. Iraq has also contracted options for 10 additional 737s.

Valued at $2.2 billion at current list prices, the order was previously accounted for on Boeing's Orders & Deliveries Web site attributed to an unidentified customer.

In addition, Iraq and Boeing are finalizing an agreement for 10 Boeing 787 Dreamliners, which will allow an Iraqi national airline to provide longer-range commercial service. The 787s will be added to Boeing's order book when the contract is completed.

"Today marks a new beginning for Iraq," Minister of Finance Bager M. Jabor Al Zubaidy said during a signing ceremony that was also attended by Prime Minister Nouri al-Maliki and Boeing Commercial Airplanes President and Chief Executive Officer Scott Carson. "We are very comfortable with our selection of Boeing airplanes as the basis of our fleet renewal and pleased to count Boeing as a trusted partner in supporting our reconstructive efforts."

In recent months Boeing and Iraqi officials have discussed how Boeing can assist with the reconstruction of Iraq's aviation infrastructure and preparation for delivery and operation of new airplanes. Boeing will offer advice and expertise in areas such as the planning and development of airport infrastructure throughout Iraq; helping train aviation sector personnel; aiding in the selection and acquisition of airline support equipment; and arranging for cost-effective maintenance and service solutions for used aircraft obtained prior to new airplane deliveries.

"Today is truly a milestone event for Boeing and for Iraq," Carson said. "The operational characteristics of the Boeing Next-Generation 737 and 787 Dreamliner are unbeatable and, as we work together in support of Iraq's plan to build a national carrier, we envision the day when a modern and efficient fleet of airplanes will directly support Iraq's economic development and growth."

Boeing Declines Swiss Request for Proposal for New Fighter Aircraft

Boeing Declines Swiss Request for Proposal for New Fighter Aircraft

ST. LOUIS, April 30, 2008 -- After a thorough review of Switzerland's requirements for partial replacement of its Tiger fighter aircraft, Boeing [NYSE: BA] has decided not to enter the competition due to the disparity between the requirements for an F-5 replacement aircraft and the next-generation capabilities of the F/A-18E/F Block II Super Hornet.
Boeing values its long-standing partnership with Switzerland and looks forward to continuing its support and modernization of the F-18C/D as the Swiss Air Force moves into the future.

WOOLF REPORT TO BE PUBLISHED ON 6 MAY 2008

WOOLF REPORT TO BE PUBLISHED ON 6 MAY 2008

02 May 2008 | Ref. 143/2008

London, United Kingdom – BAE Systems welcomes today’s announcement that the Woolf Committee will publish its report on Tuesday, 6 May 2008. The Company took the bold step of establishing the Committee as part of its commitment to continuous improvement in all aspects of its business.

Mike Turner, Chief Executive of BAE Systems said: “We look forward to receiving a copy of the Report on Tuesday and we remain committed to implementing all of the Report’s recommendations in full, throughout the Company.”

Dick Olver, Chairman of BAE Systems said: “We are committed to achieving a demonstrable leadership position in ethical business practice.”

SENATE ARMED SERVICES COMMITTEE COMPLETES MARKUP OF NATIONAL

PRESS RELEASE: United States Senate Committee on Armed Services

FOR IMMEDIATE RELEASE
9:30 AM Thursday, May 1, 2008

SENATE ARMED SERVICES COMMITTEE COMPLETES MARKUP OF NATIONAL DEFENSE AUTHORIZATION BILL FOR FISCAL YEAR 2009

Senator Carl Levin (D-MI), Chairman of the Armed Services Committee, and Senator John McCain (R-AZ), Ranking Member, announced today that the committee has completed its markup of the National Defense Authorization Bill for Fiscal Year (FY) 2009. The bill authorizes funding for the Department of Defense (DOD) and the national security programs of the Department of Energy (DOE).

“I am very pleased that the committee has unanimously voted to report out a bill that provides our troops and their families with the support that they deserve. The bill provides a 3.9 percent across-the-board pay raise for all uniformed personnel, a half a percent more than the
President requested. It adds more than $120 million for various nonproliferation and combating WMD efforts, and includes legislative provisions to improve our ability to reduce or respond to threats of WMD, both abroad and at home. The bill also ensures proper stewardship of taxpayer dollars by requiring DOD to ensure that contractors do not receive a competitive advantage by using foreign subsidiaries to avoid the payment of U.S. payroll taxes, ensuring that private security contractors do not perform inherently governmental functions in an area of combat operations, and prohibiting the use of appropriated funds for any large-scale infrastructure projects in Iraq. All Armed Services Committee Members can be proud of their bipartisan work on this bill,” said Levin.

“I congratulate Chairman Levin on a successful markup of this year’s National Defense Authorization bill. Senator Levin’s leadership continues to exemplify the Committee’s long tradition of bipartisanship, and I am honored to serve with him. We have a good bill that fully funds the President’s budget request, provides a 3.9 percent pay raise for all military personnel and enhances dental and medical benefits for the Guard and Reserves. This is a critical time in our nation’s history and the Committee has, once again, demonstrated its strong bipartisan
support for our troops and their mission to protect our great nation,” said McCain.

“I also want to express my heartfelt thanks to Senator John Warner. After 29 years on the Armed Services Committee, this year’s markup was his last. Senator Warner has served as the Committee’s great sage. His rare brand of integrity, honor and gentle persuasion are emblematic of his long distinguished service to his nation. I’ve long admired his steady hand and tireless commitment to our brave servicemen and women. I am grateful for his strong stewardship. His advice and counsel have been invaluable to me and he will be greatly missed by me and all members of the Senate,” added McCain.

“The policies and funding decisions in this bill are designed to reduce our Nation’s strategic risk by helping to restore the readiness of the military services to conduct the full range of their assigned missions as soon as possible,” added Levin.

“I also want to thank Senator John McCain for his steadfast support and Senator John Warner, whose wise counsel contributes so much to the Committee’s work,” Levin also added.