Re Contract

Pennant International Group PLC
23 August 2005

BAE SYSTEMS SELECTS PENNANT TO SUPPLY HAWK TRAINING PROGRAMME

Pennant Training Systems is pleased to announce that it has been formally
selected by BAE SYSTEMS (Operations) Limited as the preferred supplier to
deliver a Computer Aided Learning System (CALS) for a major customer.

The multi-million pound contract, which recently commenced, will run for
approximately 36 months and supports the sale of Hawk training aircraft. The
training solution comprises over 300 hours of Computer Based Training (CBT), a
Virtual Aircraft Training System (VATS), and 3 electronic classrooms.

A number of contracts have now been awarded to Pennant by BAE SYSTEMS for Hawk
related training over the past 9 months.

Chris Snook, Chief Executive of Pennant, commented, 'This is a very important
contract win for Pennant with such a blue chip company. Having established an
excellent track record on current programmes with the client, this is seen by
both Pennant and BAE SYSTEMS as a step towards striking a long-term 
relationship'.

Pennant Training Systems Ltd is a wholly owned subsidiary of Pennant
International Group plc, which is quoted on the AIM market of the London Stock
Exchange. The Group is based in Cheltenham with overseas operations in the USA,
Canada and Australia.

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

Chris Snook, CEO, Pennant                          01452 714914

Barrie Newton, Rowan Dartington                    0117 925 3377


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