Re Contract

Pennant International Group PLC
14 December 2004



Contract News - Pennant International Group plc


Cheltenham, Gloucestershire - 14th December 2004:


 Pennant selected by BAE SYSTEMS to supply further Training Systems to support
                        the South African Hawk Contract.


Pennant Training Systems has been contracted by BAE SYSTEMS to design, produce
and supply a Virtual Aircraft Training System (VATS) for the Hawk Training Suite
for the South African Air Force, production work for which has been ongoing this
year.

An announcement on 2nd March 2004 covered the contract award for the Computer
Based Instruction System (CBIS) and Integrated Training Management System (ITMS)
elements and the VATS. VATS represents the third and final element of the
classroom training suite and will run concurrently with the work on CBIS and
ITMS, and is scheduled for completion in 2005.

The VATS, a PC-based desktop training system, will be an emulation of the Hawk
Mk120 Lead-In Fighter Trainer (LIFT) aircraft and will present a virtual
aircraft with a graphical interface and systems emulation software delivering
functionality for the 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 Mk 120 LIFT and its
systems, to develop cognitive and diagnostic skills and for competency
assessment.

A further contract is anticipated for delivery 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.

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 South East
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.

This brings the total value of new orders gained by Pennant International Group
plc in the current quarter to £1.6 million, including other orders won in the
defence, government and civil aerospace industries.

Pennant Training Systems Limited is a wholly owned subsidiary of Pennant
International Group plc, which is 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:

Chris Snook, Chief Operating Officer, 
Pennant International Group plc:                Tel: [phone]

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

Philip Parkes, 
Binns Winningtons:                              Tel: [phone]



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