Re Agreement

BAE SYSTEMS PLC
10 December 2004


10 December 2004


MAJOR ORDER FOR LAND SYSTEMS HAGGLUNDS

BAE Systems Land Systems Hagglunds has won a 749 million euro (approx £500m)
order from the Netherlands for its CV90 armoured vehicle. This is the first
major contract win for Land Systems, created in September this year.

The Netherlands Army and Land Systems Hagglunds will sign a contract for the
delivery of 184 infantry fighting vehicles on 13 December. Deliveries will be
made during the years 2007 to 2010.

Land Systems Hagglunds' CV9035 was selected for the Dutch infantry fighting
vehicle programme after an extensive competitive evaluation. State secretary for
Defence Cees van der Knaap stated in a letter to the Dutch parliament on 29
October: 'The outcome of the evaluation is that the CV90 fulfils the
requirements, has the lowest risk, the lowest price and the fastest delivery
time.'

The Dutch Ministry of Economic Affairs also had a preference for CV90, based on
strong involvement of Dutch industry and the high levels of firm commitments

Sweden, Norway, Switzerland and Finland have all selected the CV90 and the new
Dutch contract brings the total ordered to 1125.

'The large fleet gives existing and new customers considerable advantages such
as a broader base for cost-sharing of future upgrades and spare parts and
international interoperability. Already today the CV90 is used internationally
by Sweden and Norway,' said Land Systems Hagglunds managing director Sven
Kagevall.

The CV9035 is a further development of the CV90 IFV. It features enhanced
firepower, survivability, mobility, ergonomics and advanced electronic
architecture with implemented C4I systems. The main armament is a Bushmaster III
35/50 cannon with a computerised fire control system, incorporating ammunition
programmer. The commander has a rotating cupola for maximum visibility and both
the commander and gunner have fully stabilised day and night sights with
third-generation thermal cameras.

The vehicle will be delivered in two configurations, infantry fighting vehicle
and command vehicle. Both have three-man crews. The IFV can carry a squad of
seven and the command version has a staff group of four.

Sven Kagevall added: 'It is most encouraging that we have been given the
confidence to carry through such an important contract after substantial
competition. It strengthens the CV90 position as the infantry fighting vehicle
for Europe and Land Systems Hagglunds' position in future procurement
programmes.'

Issued by
BAE Systems plc
London


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