Re Contract

BAE SYSTEMS PLC
30 July 2003


30 July 2003



UK MOD ANNOUNCES ORDER FOR LATEST HAWK AIRCRAFT

The UK MoD has today selected the latest generation of Hawk aircraft, the Hawk
Mk 128 as its new Advanced Jet trainer (AJT) for the 21st century. 20 Hawk Mk
128 aircraft will be ordered, with an option for up to a further 24, going into
service from 2008 as replacements for some of the current Hawk TMK1s at RAF
Valley.

Hawk and Brough Managing Director Mark Parkinson said, 'This excellent news
keeps the Hawk at the leading edge of fast jet training technology and
reinforces its position as the world's most successful advanced jet trainer. We
will now work hard to deliver to the MoD an aircraft that will meet all their
requirements and represents value for money for the taxpayer. This decision
ensures that the redundancy notice for 470 posts at BAE SYSTEMS Brough will not
be exercised. We are very grateful to our employees at Brough, the trade unions
and our local MPs for their support.'

The Hawk 128 is the next generation of trainer aircraft and will be used to
train future fighter pilots that will fly the Eurofighter Typhoon and the Joint
Strike Fighter.

The Hawk 128 is a new development from the successful Hawk family of aircraft,
designed around a fully digital cockpit, open architecture computers and
airborne simulation systems.

BAE SYSTEMS Chief Executive Mike Turner said 'We recognise that this has been an
important and difficult decision for the Government in the context of spending
priorities. The UK commitment to Hawk will directly secure 2,200 jobs across BAE
SYSTEMS at Brough and 70 companies within the supplier base, reflects the intent
of the Government's Defence Industrial Policy issued under the authority of the
Secretary of State for Defence and the Secretary of State for Trade and Industry
in October 2002, and will therefore be widely welcomed by the UK defence
industry. We are delighted by this decision - especially for our employees at
Brough who will be producing the best advanced jet trainer in the world.'



Issued by

BAE SYSTEMS plc

London


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