Re Contract

Pennant International Group PLC
29 January 2002

Pennant International Group plc ('Pennant') is pleased to announce that its
wholly owned subsidiary, Pennant Training Systems Limited, has recently been
down selected for two major new contracts.


First, Pennant Training Systems has been selected as preferred provider by BAE
SYSTEMS for the Computer Based Training and Virtual Aircraft Training Systems
(CBT&VATS) for the South African Hawk programme.  A formal contract will follow
detailed discussions to establish the full scope of deliverables and agreed
pricing satisfactory to BAE SYSTEMS.


The South African programme will be the third of its type developed by Pennant
Training Systems in collaboration with BAE SYSTEMS.  The first CBT&VATS training
system entered service with a Hawk Mk 100/200 user in South-East Asia in early
1999 and the second, for the Hawk Lead-In Fighter Mk 127 programme for the Royal
Australian Air Force is due to enter full time service in 2002.  The Royal
Australian Air Force version of CBT&VATS has been installed progressively during
2001 and Pennant Training Systems is currently working with BAE SYSTEMS to
complete final work on the system.


Under a separate contract Pennant Training Systems is already providing
in-service support for the Royal Australian Air Force version of CBT&VATS, with
staff based with BAE SYSTEMS at RAAF Williamtown, through to 2006.


Secondly, Pennant Training Systems has been selected as preferred supplier by
Westland Helicopters Limited to supply a Lynx Mechanical & Weapons Trainer
(LMWT) and an Avionics & Electrical Systems Emulator (AESE) for the Royal Air
Force of Oman new buy of Lynx 300 helicopters.  The contract to supply sixteen
of the Lynx 300 helicopters was signed by the Royal Air Force of Oman on January
19 with Westland Helicopters Limited, an AgustaWestland company.


Pennant was selected as preferred supplier for the LMWT and the AESE in the
fourth quarter of 2001 and in the intervening time has been working with
Westland Helicopters Limited to develop detailed technical specifications of
requirements for both devices and agreed contract terms in readiness for
programme launch.   This work is largely completed and Pennant expects to enter
into final negotiations and to be placed under contract for both the LMWT and
AESE by Westland Helicopters in the first quarter.  The Westland contracts have
a combined value in excess of £2.5 million over a two-year period of work.



The LMWT will be a full scale airframe, suitably fitted and with underlying
systems simulation software to enable mechanical and weapons maintenance
training activities to be carried out by students under controlled conditions.
The AESE will be a PC-based desktop training system presenting a virtual
helicopter with a graphical interface and systems simulation software delivering
functionality for the avionics and electrical systems together with associated
virtual test equipment.  Both the LMWT and AESE are adaptations of technology
developed on other defence aerospace simulation and training systems programmes.



Commenting Joe Thompson, Chief Executive of Pennant International Group said 'We
are delighted to have been selected for these two major programmes that build on
Pennant's extensive training systems and expertise and look forward to
commencing work on them shortly'.



For further information, visit www.pennantplc.co.uk or contact:



Joe Thompson, Chief Executive, Pennant International Group plc: 
Tel: [phone]

Phil Barwell, Commercial Director, Pennant Training Systems Ltd: 
Tel: [phone]

Barrie Newton, Managing Director, Rowan Dartington & Co Ltd.  
Tel: [phone]

Ken Rees, Winningtons:  Tel: [phone] / Mobile: [phone]



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