Re Contract

Pennant International Group PLC
02 March 2004


PENNANT INTERNATIONAL GROUP PLC

Contract News

Cheltenham, Gloucestershire - 2nd March 2004:

               Pennant Awarded South African Hawk Training System
                            Contract by BAE SYSTEMS

Pennant Training Systems is pleased to announce the award of a contract by BAE
SYSTEMS to supply a Hawk training suite for the South African Air Force.

The training suite initially comprises a Computer Based Instruction System
(CBIS) and an Integrated Training Management System (ITMS). It will be used to
support the training of SAAF pilots and maintenance engineers who will operate
and support the fleet of 24 Hawk Mk120 Lead-In Fighter Trainers (LIFT) ordered
by South Africa as part of its strategic defence procurement programme.
This £2 million contract covers the main design and production stages for the
CBIS and ITMS, scheduled for completion in 2005/2006. Contract award for the
Virtual Aircraft Training System (VATS) main design and production stage with an
expected value of approximately £1 million is anticipated during the first half
of 2004. A further contract is anticipated to start in 2006 to bring the CBIS
and VATS up to the final technical standard of the aircraft before commencement
of the in-service support phase. Pennant has already successfully completed a
contract for activities through to Preliminary Design Review in January 2003 and
Critical Design Review in August 2003.

The CBIS comprises some 240 hours of highly inter-active Computer Based Training
(CBT) courseware for aircrew and groundcrew covering all aircraft systems. The
VATS, a PC-based desktop training system, will be a full emulation of the Hawk
Mk 120 LIFT aircraft and will present a virtual aircraft with a graphical
interface and systems emulation software delivering functionality for all
aircraft systems together with associated virtual test and ground support
equipment. Both aircrew and ground crew will use this training suite to gain
knowledge and understanding of the Hawk LIFT and its systems, to develop
cognitive and diagnostic skills and for competency assessment. The ITMS
capability and functionality is derived from two of Pennant's products, linked
by a software data-sharing interface, namely a Course Management System (CMS)
and Training Management Information System (TMIS). With the ITMS instructors
will be able to schedule training activity, manage student progress through
their courses, provide evaluation of student performance and generate student
records. The ITMS will also guide and monitor progress of trainees through their
courses of instruction.

This is Pennant's third programme with BAE SYSTEMS for Hawk CBT and VATS
emulation systems with the first two systems in service, one with a SE Asian
Hawk operator and the second with the Royal Australian Air Force. Pennant's
advanced emulation technology is also being used on current rotary wing
programmes for Westland Super Lynx and EH101 helicopters.

Pennant Training Systems Limited is a wholly owned subsidiary of Pennant
International Group plc, based in Cheltenham, England and listed on the
Alternative Investment Market (AIM) of the London Stock Exchange.
                                     -oOo-
For further information, visit www.pennantplc.co.uk or contact:
Joe Thompson, Chief Executive, Pennant International Group plc: Tel: +44 (0)
1452 714881
Barrie Newton, Managing Director, Rowan Dartington & Co Ltd. Tel: +44 (0) 117
925 3377
Ken Rees, Binns Winningtons: Tel: [phone]
or Mobile: [phone]



                      This information is provided by RNS
            The company news service from the London Stock Exchange