Re Contract

BAE SYSTEMS PLC
19 March 2004


BAE SYSTEMS HAWK TRAINER - INDIA IMPLEMENTATION MoU SIGNED


The Government of India today signed a Memorandum of Understanding with the
British High Commissioner to India in New Delhi 'for the effective and
uninterrupted implementation of the contracts regarding acquisition of 66 HAWK
Advanced Jet Trainers (AJTs)'. This underpins the supply of 66 aircraft, with
associated support and interim pilot training.

Commenting on the news, Sir Richard Evans, Chairman, BAE Systems said, 'I am
delighted that the Indian Government has chosen the Hawk, the world's best
selling advanced jet trainer, for the Indian Air Force. This programme will
continue the company's long standing relationship with India; particularly with
Hindustan Aeronautics Limited (HAL), a long term partner. BAE Systems has been
partnering with Indian companies for over sixty years and today's announcement
ensures that this association will continue well into the 21st century'.

The selection of Hawk by the Indian Government represents a significant
programme for BAE Systems. The initial batch of 24 aircraft will be built at BAE
Systems' facilities in the UK with the first aircraft to be delivered to the
Indian Air Force in 2007. The following 42 will be manufactured in India through
a partnership with HAL.

The Indian Air Force is to receive an advanced version of the Hawk 100 series.
It features a glass cockpit with Hands-On-Throttle-And-Stick (HOTAS) controls,
head down Multi-Function Displays (MFD), a Head Up Display (HUD). The aircraft
utilises the Rolls Royce Adour engine, which has a high degree of commonality
with the engines in service with the Indian Air Force Jaguar aircraft.


Issued by

BAE Systems plc
London


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