Military tradings, World Wide Weapons deals

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United Industrial's AAI Corporation Awarded $71.9 Million Contract by U.S. Army for Additional Shadow Tactical Unmanned Aerial Vehicle Systems




"HUNT VALLEY, Md. --- United Industrial Corporation announced today that its AAI Corporation subsidiary has received its third consecutive full-rate production contract from the U.S. Army for Shadow Tactical Unmanned Aerial Vehicle (TUAV) systems.

Valued at $71.9 million, the fully funded new contract exercises options for the production of eight additional TUAV systems, including ground control stations, maintenance equipment, and spare components, to be delivered over the next 20 months.

Each Shadow TUAV system consists of four air vehicles and two ground control stations. This order for eight systems calls for the production of 32 RQ-7B Shadow TUAV air vehicles, 16 ground control stations, and associated components and support equipment. The work will be performed at AAI's manufacturing facility in Hunt Valley, Md.

"Shadow TUAV systems have become a vital part of the U.S. Army's modular brigade approach to warfighting and are saving lives of soldiers and accomplishing an array of missions in Operation Iraqi Freedom," said United Industrial and AAI President and Chief Executive Officer Frederick M. Strader. "We are pleased that the Army is continuing to rely on this important battlefield intelligence-gathering asset for innovative support of America's warfighters."

In addition to the production of the TUAV system, AAI also provides support services for fielded and deployed TUAV units. "

Source: United Industrial Corp

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Two AS532UL Cougars Recently Delivered to Spain for VIP Operations


Source: Eurocopter


"I"n late 2004, Eurocopter España delivered two AS 532 UL Cougars in VIP version to the Spanish Defense Ministry.

The two helicopters, which were ordered by the Spanish government in June 2003, will join the existing fleet of four AS 332 M1s and two AS 332 B Super Pumas, and will be used for the transport of senior officials.

The two helicopters will be operated with an airworthiness type certification that complies with the new Spanish regulations. They will be flown by Squadron 402 of the Spanish Air Force, based in Cuatro Vientos (south of Madrid).

The contract for more than 33 million euros covers the helicopters, support services, training and spare parts.

Eurocopter España will be responsible for the training of personnel and for the helicopter logistical support, and will also launch the industrial activities included in the contract. "

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Weapons Control Systems for the Finnish Army


Source: Kongsberg Gruppen


"Kongsberg Protech has signed a contract with Patria Vehicles Oy of Finland valued at approximately MNOK 145 for weapons control systems for the Finnish Army's armoured personnel carriers. Made by Patria, the vehicles are wheeled and the Finnish Army has ordered 62 of them.

Kongsberg will be providing the systems in 2006 and 2007. Prior to that, the systems will be further developed and adapted to Finnish specifications.

Finland will be the fourth country to deploy Kongsberg’s weapons control system. So far, the system has been delivered to Norway, the USA and Australia. The weapons control system for Finland will be a more advanced version of a system that has been delivered for more than 700 US Army vehicles. With a framework of roughly NOK 2 billion, the US programme began in 2000 and deliveries are still in progress.

"The contract will help ensure favourable development for both the system and the company, at the same time as it is obvious that we have a system well able to face international competition", states Egil Haugsdal, president of Kongsberg Protech.

The principle underlying Kongsberg’s weapons control system is that a soldier can operate an exterior weapon from inside an armoured personnel carrier, thus remaining protected from enemy fire. "

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Pentagon Contract Announcement


Source: US Department of Defense


"ITT Avionics, Clifton, N. J., is being awarded a $68,394,300 modification to a previously awarded firm fixed price contract (N00019-04-C-0074) to exercise an option for the Fiscal Year 2005 full rate production II (FRP II) of 38 AN/ALQ-214 (V)2 Integrated Defensive Electronic Countermeasure (IDECM) Radio Frequency Countermeasure (RFCM) units.

Work will be performed in Clifton, N.J., and is expected to be completed in July 2008. Contract funds will not expire at the end of the current fiscal year. "

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Northstar Awarded Repair and Overhaul Contracts for CH-47 Chinook and AH-64 Apache Helicopters


Press release - Northstar Aerospace


"CHICAGO, IL, --- Northstar Aerospace Inc. has received two contracts with a total value of US$12 million from the U.S. Army to provide repair, overhaul and spare parts for the AH-64 Apache and CH-47 Chinook helicopters.

The AH-64 Apache contract is valued at US$8 million and involves overhaul of main transmissions and provision of spare parts beginning this year. The majority of the work will be completed at Northstar's Chicago, IL facility with support from the company's plants in Milton and Windsor, Ont. and Phoenix AR. The AH-64 Apache attack helicopter is the backbone of the U.S. Army's all- weather, ground-support capability.

The CH-47 Chinook contract is valued at US$4 million and involves overhaul of aft transmissions of the twin-turbine, tandem-rotor transport helicopter. The CH-47 Chinook is the U.S. Army's standard transport helicopter for the movement of troops, artillery, ammunition, fuel, water, barrier materials, supplies and equipment.

The U.S. Army announced a $549 million contract for 17 new CH-47F Chinook helicopters last week. It is the largest Chinook order since the mid-1980s. Northstar Aerospace is the sole source supplier for Chinook transmission components.

"These contracts underscore our strategy to target stable programs with significant repair and overhaul potential. We are proud to be serving the needs of the U.S. military. Our focus as a company is to serve our customers' needs better through Lean Manufacturing initiatives that reduce turnaround time and improve service," said Mark Emery, Chief Executive Officer, Northstar Aerospace Inc. "The new build announcement last week from the U.S. Army is further encouraging news and will result in additional work for us beginning later this year." "

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BAE Systems to Upgrade and Maintain Marine and Navy Countermeasure Systems


Source: BAE Systems


"POMONA, Calif. --- The Naval Inventory Control Point and the Naval Air Systems Command have placed follow-on contracts totaling $12 million with BAE Systems to maintain and upgrade AN/ALQ-157 Infrared Countermeasure Systems for the U.S. Marine Corps and Navy.

The AN/ALQ-157 is designed to protect aircraft by jamming the missile guidance of a heat-seeking missile. The defensive system radiates controlled pulsed, high-intensity infrared energy to fool the enemy missile seeker.

These follow-on contracts increase the quantity ordered by the military for the upgraded systems, known as the AN/ALQ-157A(V)1 to more than 350 systems. The upgraded systems are produced by BAE Systems' Information & Electronic Warfare Systems (IEWS) Pomona, California facility.

"This program provides the military with improved system reliability, enhanced on-aircraft performance, and reduced maintenance requirements and associated costs," said Bill Appleby, BAE Systems program manager.

The upgrade program will continue into 2006. It will involve significant coordination and teamwork between BAE Systems, the U.S. Navy, and U.S. Marine Corps. The Navy will retrieve the equipment from various locations throughout the world and send it to BAE Systems at Pomona, where it is upgraded, tested, and returned.

The Navy will return the equipment back to the field to be fitted on aircraft and into the supply system. The rotation of equipment will be carefully orchestrated to ensure that Marine aircraft currently in combat areas always have IRCM protection available. BAE Systems is committed to deliver the upgraded equipment and spares support as quickly as possible.

"I am grateful for the efforts of many to bring the updated and reworked ALQ-157s into reality. Our aircraft survivability equipment has already saved numerous aircrew lives and airplanes," said Lt. Gen. James F. Amos, U.S. Marine Corps. "

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Turkey Selects the ATR-72 ASW for its Navy


Source: Alenia Aeronautica


" ROME --- Alenia Aeronautica, a Finmeccanica company, has been selected by the Undersecreteriat for Defence Industries of Turkey for the supply to the Navy of ten ATR-72 ASW (Anti Submarine Warfare) aircraft, which will carry out maritime patrol and anti-submarine surveillance missions.

The negotiations start for the contract finalisation is due shortly.

The ATR-72s for Turkey, provided with a mission system by the Thales company, are a special version, developed by Alenia Aeronautica, of the commercial transport ATR 72/500 aircraft.

The ASW version, conceived for a cost-competitive medium range aircraft, is capable of carrying out anti-submarine missions, with the integration of the maritime patrol functions already implemented by the ATR42 MP, the Maritime Patrol version currently in force within the Italian Guardia di Finanza (Customs Police) and the Coast Guard.

“This success,” states Giorgio Zappa, Finmeccanica's Chief Operating Officer and Alenia Aeronautica' Chairman and Chief Executive Officer “is particularly rewarding for us since Turkey is a highly qualified Country in its choices of technological products and in the defence field. Considering the already very good relationship between Italy and Turkey, the ATR72 selection means a great deal for the Finmeccanica Group's future successes and, at the same time, funds the basis for further international collaborations with the Thales Group and the Turkish industry. Special thanks go to the extraordinary and effective support action of the Italian Government, which confirms the new strategy of Italian trade within the international scenario.”

In Turkey Alenia Aeronautica is also responsible for the promotion of the Eurofighter Typhoon, the European fighter manufactured by the Italian company together with BAE Systems and EADS. The programme involves 400 companies and 120thousand employees in Europe :

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Abnormal Ascent During O'Higgins Sea Trials


Source: DCN


"PARIS --- On 1st November 2004 the O'Higgins, the first submarine of the new Scorpene type and the first of two for the Chilean Navy, was undergoing tests off Lorient, France.

One test dive resulted in a so-called "falling leaf" ascent, a well-known physical phenomenon to which all submarine designs are susceptible under certain conditions. This abnormal ascent occurred under test conditions designed specifically to explore the submarine's operating envelope.

Overall, the test results confirm the submarine's excellent seakeeping.

The O'Higgins is proceeding with sea trials as originally planned to the complete satisfaction of partners DCN and Izar and their customers, the Chilean Navy. "

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Army to Purchase New Chinooks, Upgrade Fleet


Source: US Army


" WASHINGTON --- All of the Army's CH-47 Chinooks will be upgraded to the new CH-47F models by 2018 as the result of a partnership between the service and Boeing, the helicopter's manufacturer.

The Army will buy 55 new CH-47F models, have 397 helicopters remanufactured into CH-47Fs, and have 61 remanufactured to the CH47G used by Special Forces units. Total procurement costs through 2018 will be $11.4 billion.

In a media round table Jan. 12, Col. William T. Crosby, project manager Cargo Helicopter, said the effort will keep the Chinook in the air even longer than the U.S. Air Force's B-52 bomber.

When the helicopters are remanufactured, they will be rebuilt from the ground up. The Chinooks will receive recapitalized depot-level repair components that are nearly “zero hour” or new. The aircraft will receive new airframes.

The new version of the Chinook features a modern “glass cockpit” avionics suite, in which computer displays replace the more traditional “steam gauges” seen on traditional control panels. Crosby said the CH-47s Common Avionics Architecture System is based on the MH-47G common core. The UH-60M program plans to use the same system

“The software is different, but when you plug in the hardware, it checks to see which aircraft its in and installs the right software,” Crosby said. “This is part of the Common Avionics Architecture System we've been working on.”

Crosby said research showed that it was less expensive to replace the entire fuselage than to rebuild the 40-year-old airframes currently in service. Many of the new airframes interior formers and load bearing members are machined in one piece, much stronger than those used in the original airframes, which were built of numerous pieces riveted together. Crosby said the changes amount to a 50 to 60 percent reduction in part numbers for some components.

The upshot of these changes was a reduction in the price of a new helicopter from the $42 million to $30 million. The price for remanufactured helicopters is expected to be slightly lower than $30 million, but is still being negotiated. Crosby said the lower cost became possible when the Army agreed to fund non-recurring costs at a higher rate.

“By bumping up our non-recurring costs, we were able to avoid $12 million in the price of each helicopter. When the eighth helicopter roles off the line, we start making those non-recurring costs back,” Crosby said. “We agreed with Boeing that we could remanufacture the 427 aircraft with new airframes at a price less than or equal to the price of rebuilding the original airframes. They were able to find the cost savings.”

Jack Dougherty, director of Chinook Programs for Boeing, said the company was able to outsource the construction of some of features, and to redesign others using more modern methods, because of the increase in non-recurring funding.

He said the order for 55 new helicopters, even spread over several fiscal years, is most Boeing has received from the Army since 1973.

Sgt. 1st Class Gary Newton is the standardization instructor, and served with the operational test unit during the first phase of testing on the helicopter. He said the new aircraft makes his job easier.

“We flew about 90 hours in two different aircraft,” Newton said. “The new airframe will reduce vibration and reduce our workload. The new intercom system makes it easier to communicate, and the two crewmembers in the back can now talk to each other independent from the pilots in the cockpit.”

The new Chinook is also easier to prepare for loading onto a large cargo aircraft, Newton said.

“Our time to load on, say, a C-5 Galaxy has been cut in about half,” he said. “It also decreases the time for unloading at the other end.”

Chief Warrant Officer Brian MacDonald has flown the prototype, as well as the former CH-47D and MH-47E versions of the aircraft.

“The new avionics help improve our situational awareness,” MacDonald said. “The integrated glass cockpit decreases our workload. You have a display screen showing you the map to your destination. You still have a paper map, but it's folded under your leg as a backup.”

MacDonald said the more powerful engines in the CH-47F are the same that are being used to convert about 65 percent of the current fleet of CH-47Ds.

“The difference is like being on steroids,” MacDonald said. “We've always been the most powerful heavy lift helicopter, but now we're making more power, and we're getting more power for less fuel.” "

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Indra to Develop an Ultralight Satellite Communications Network for Defence Worth 8.2 Million euros


Source: Indra


" Indra, through its affiliate Indra Espacio, has been selected by the Ministry of Defence to develop and implement an ultralight and easy to use satellite network terminal. The amount of the contract is 8.2 million euros.

The project is based on the development by Indra of a backpack transportable communications terminal (Manpack in NATO terminology), weighing less than 16 kilos, easily deployed, with great autonomy and communication capacity and ease of use.

The contract was awarded to the Spanish company following a selection process that involved field operation tests of the satellite terminals by the Armed Forces including, during this first phase, the delivery of 69 terminals to be distributed among the three Forces as well as the implementation of the network management centre which controls communications and terminal connections.

The new network will provide great versatility and coverage to Armed Forces communications, given the ease of transportation and deployment as well as the possibility of operating in remote locations thanks to its alternative power supply systems and its high transmission capabilities using military or civilian satellites, depending on the options available.

The terminal started to be delivered in November and will continue until the end of 2007, while the network management centre will become operational during early second quarter 2005.

The design of the Manpack remote communications terminal developed by Indra is based on a backpack transportable unit that simplifies its deployment and withdrawal to and from locations that do not have primary power supply and require the use of alternative power supplies such as batteries or solar panels.

The system involved uses the military frequency X, but it can also use the commercial Ku frequency of civilian satellites using an optional radio frequency kit, which confers great flexibility and scope of coverage. It offers a configurable digitised voice or data channel with speeds up to 64 Kbps and is easily activated, as it includes a height and amplitude pointing mechanism with an indication between signal strength and noise that helps to easily point it to the satellite and subsequently synchronize with the network. Communication security is guaranteed by the type of modulation and the possibility of including a certified encrypter for encrypting communications.

The characteristics of the Manpack, together with its reduced weight, provide considerable operational advantages to the Spanish Armed Forces and offers strong marketing opportunities with the Armed Forces of other allied countries. "

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U.S. Navy Awards General Dynamics $14 Million Contract Modification for Submarine Combat Control System


Source: General Dynamics


"ARLINGTON, Va. --- The U.S. Navy awarded General Dynamics Advanced Information Systems, a business unit of General Dynamics, a $14 million contract modification for procurement and engineering activities supporting the AN/BYG-1 Submarine Combat Control System. Work will be performed in Fairfax, Va., and is expected to be completed by Dec. 2005.

The contract modification includes engineering and technical services to support development activities for the Tactical Control System, which is intended for use in all U.S. Navy submarines. The Tactical Control System provides the next generation capability for submarine tactical decision and contact/sensor management. The system uses a lower cost, more readily upgradeable commercial off-the-shelf based system design. The first AN/BYG-1 Combat Control System is scheduled to be installed on an improved SSN-688 Los Angeles class attack submarine in July 2005.

The contract modification also includes procurement activities for Integrated Electronic Equipment Enclosure (IEEE) cabinets in support of the AN/BYG-1 Combat Control System on Seawolf-class submarines. These cabinets will contain the combat control system electronics and software associated with the Tactical Control, Weapons Control and Information Assurance systems.

Digital System Resources, Inc. received the award modification on Jan. 5, 2005. The original award was received on Dec. 13, 2002. The company was acquired by General Dynamics and became part of General Dynamics Advanced Information Systems in Sept. 2003.

General Dynamics Advanced Information Systems, headquartered in Arlington, Va., is a leading provider of transformational mission solutions in command, control, communications, and computers, intelligence, surveillance and reconnaissance. Customers include those in the defense, intelligence, homeland security and homeland defense communities.

General Dynamics, headquartered in Falls Church, Va., employs approximately 71,600 people worldwide and anticipates 2004 revenue in excess of $19 billion. The company is a market leader in mission-critical information systems and technologies; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and business aviation. "



General Dynamics Awarded $5.5 Million Contract Modification for U.S. Navy Nuclear Work


Source: General Dynamics


" GROTON, Conn. --- The U.S. Navy has awarded General Dynamics Electric Boat a $5.5 million modification to a previously awarded contract to manage and support nuclear-maintenance work for submarines homeported at Naval Submarine Base New London in Groton. Electric Boat is a wholly owned subsidiary of General Dynamics.

Under the terms of the contract modification, Electric Boat will continue to operate the Nuclear Regional Maintenance Department (NRMD) at the submarine base through Sept. 30, 2005. The company will provide project management, planning, training and radiological-control services to support maintenance, modernization and repairs in support of operational submarines. A core group of about 30 Electric Boat employees are assigned to the NRMD, with surge groups of up to 80 shipyard employees for short periods.

The contract was initially awarded in March 2001 and has a potential value of $89 million over five years.

General Dynamics, headquartered in Falls Church, Virginia, employs approximately 71,600 people worldwide and anticipates 2004 revenue in excess of $19 billion. The company is a market leader in mission-critical information systems and technologies; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and business aviation. "


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Navy Funds Contract Option for Construction of Destroyer


Source: US Department of Defense


"The Department of Defense announced today that Bath Iron Works, a unit of General Dynamics, received a $562.1 million modification to its FY02-05 DDG 51 Class multi-year contract to build the final ship of the Arleigh Burke Class. As the 34th DDG 51 Class Destroyer built by Bath Iron Works, DDG 112 represents the culmination of new construction for the U.S. Navy’s AEGIS shipbuilding program and marks the beginning of a major transition for the Navy as it moves from the DDG 51 to the next generation of destroyer, the DD(X).

The Honorable John J. Young Jr., assistant secretary of the navy for research, development and acquisition, described today’s action as another “landmark on the highway” of AEGIS shipbuilding.

“This is the last of 62 DDG 51 Class ships, the final act of a play that will be reviewed as one of the most successful defense acquisition programs in history,” said Young. “Bath Iron Works continues to produce excellent AEGIS destroyers that will serve this nation’s vital interests for decades to come. The funding of DDG 112 also continues the Navy’s commitment to a multi-year procurement contract and, combined with the purchase of LPD 25, satisfies the DDG-LPD workload swap agreement which saved the taxpayers over $500 million in shipbuilding costs.”

“This extremely capable class of combatants continues to serve our nation and our Navy with distinction, and DDG 112 will carry on that proud legacy for decades to come as these ships serve as the foundation of our combatant force,” said Rear Adm. Charlie Hamilton, the program executive officer for ships. “The Navy has utilized a number of acquisition tools on the AEGIS shipbuilding program, including spiral development, flight upgrades and technology insertion. Those innovative methods have produced a great product and will continue have a lasting impact on how we develop and acquire the best surface combatants in the world.”

Like its other Arleigh-Burke class ships, DDG 112 will be a 9,200-ton multi-mission guided missile destroyer capable of conducting a variety of operations, from peacetime presence and crisis management to sea control and power projection, in support of the National Military Strategy. DDG 112 will be capable of fighting air, surface and subsurface battles simultaneously and will contain myriad offensive and defensive weapons designed to support maritime defense needs well into the 21st century.

The ship will be built in Bath, Maine, and the Navy expects delivery in December 2010. DDG 112 will benefit from the considerable technological advancements and engineering upgrades that have been developed, tested and installed in the class since the commissioning of DDG 51 July 1991. "



General Dynamics Awarded $562 Million in Funding for Navy Destroyer


Source: Bath Iron Works


"BATH, Maine --- The U.S. Navy today announced that Bath Iron Works, a General Dynamics company, will receive $562 million in funding to construct an ARLEIGH BURKE Class AEGIS guided missile destroyer.

The ship was part of the Navy's Fiscal Year 2002 - 2005 Multi-Year Procurement contract awarded to Bath Iron Works in September 2002. DDG 112, which has yet to be named, will be the 34th AEGIS destroyer to be built at Bath Iron Works. The shipyard expects to deliver the ship in 2010 in accordance with the requirements of the contract.

Bath Iron Works of Bath, Maine, is the lead designer and builder of the ARLEIGH BURKE Class and employs 6,300 people.

General Dynamics, headquartered in Falls Church, Virginia, employs approximately 71,600 people worldwide and anticipates 2004 revenue in excess of $19 billion. The company is a market leader in mission-critical information systems and technologies; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and business aviation. "

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Pentagon Contract Announcement


Source: US Department of Defense


"United Technologies Corp., East Hartford, Conn., is being awarded a $94,575,810 fixed price with Economic Price Adjustment contract modification. This option exercises the purchase of fourteen F117-PW-100 spare engines and associated data for the C17 transport aircraft. Total funds have been obligated. This work will be complete by December 2005.

The Headquarters Aeronautical Systems Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity (F33657-02-C-0006, P00008). "

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Boeing Awards Study Contract to Alcatel in the Frame of the GPS III System Preliminary Definition Phase


Source: Alcatel Space


" PARIS --- In the frame of the US Air Force's GPS III System Preliminary Definition phase, Boeing Integrated Defense Systems awarded a study contract to Alcatel.

This contract concretises last year's discussions between Boeing and Alcatel Space to develop cooperation in Global Navigation Satellite Systems (GNSS). This is also the first ever contractual ties for GPS III between the European Union and the United States industry leaders in Satellite Navigation which materialise the EU-US high level agreement signed in June 2004.

Alcatel Space scope of activity under this contract will be to support the definition of the architecture of the GPS III global integrity as well as on the compatibility and interoperability with the Galileo European system.

Boeing also supports the Eurely consortium, which has been formed by Alcatel and Finmeccanica, and which has been short-listed by the Galileo Joint Undertaking, a venture formed by the European Union and the European Space Agency, for the purpose of launching the Galileo programme and selecting its concessionaire.

As the European leader in Satellite navigation systems, namely the European Prime of the EGNOS system and as such the leader on the Galileo integrity solution and architecture, Alcatel Space sees this contract as another concrete step toward a sound and positive cooperation between Europe and the US. Boeing and Alcatel Space support the EU-US high-level agreement on GNSS, which has been executed by the parties last 26 June 2004.

This contract confirms the long-standing relation of trust between Boeing and Alcatel Space (e.g. on XM-Radio, etc.).


Alcatel Space, a wholly owned subsidiary of Alcatel, is the world's third largest satellite manufacturer and Number 1 in Europe. Deploying extensive dual expertise in civil and military applications, Alcatel Space develops satellite solutions for telecommunications, navigation, radar and optical observation, meteorology and science. The company is also the leading European prime contractor for earth observation, meteorology and navigation ground segments, and for space system operation. Alcatel Space is today leading Eurely, the European consortium bidding for the Galileo concession. "


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In 2004, Eurocopter Considerably Expanded Its Order Book and Strengthened Its No. 1 Position


Source: Eurocopter


"MARIGNANE, France --- In 2004, Eurocopter secured its position as the world's No. 1 with orders for 332 new helicopters and a turnover up by 7%, while leading the way once again in the civil and parapublic sectors, and strengthening the export prospects of the NH90.


I. ORDER BOOK

The following orders were placed for production helicopters:

--39 EC120 Colibris,
--146 from the Ecureuil/Fennec/EC130 family,
--67 EC135s,
--13 from the BK117/EC145 family,
--32 from the Dauphin/Panther/EC155 family,
--15 from the Super Puma/CougarEC225/EC 725 family and
--20 NH90s.

The total number of orders taken -- including new and pre-owned (35) helicopters, Customer Support services and R & D activities -- was valued at 3.24 billion euros, up by 26%.

In terms of value, 70% of these orders were for export, and the remaining 30% for domestic use in France, Germany, and Spain. The breakdown was 51% for the military sector and 49% for the civil/parapublic sector.

The consolidated orders for production helicopters were worth 1.7 billion euros, an increase of 21.4%


II. TURNOVER

The turnover increased by 7% in 2004, representing a total of 2.78 billion euros. The main contributors were the delivery of 279 helicopters (49%), Customer Support activities (35%), and R & D and Miscellaneous activities (16%). Exports accounted for 56% compared to 44% for domestic use in France, Germany, and Spain. The civil and parapublic sector generated 53% of the turnover, and the military sector 47%.

In his New Year's greetings to the Press, Eurocopter President Fabrice Brégier noted that "These improvements are the result of the strategies adopted by the Group and the firm intent of Eurocopter to become the world reference for helicopters." Mr. Brégier added: "We will spare no effort to stay in the lead in our sector and to sustain our development."


III. STRATEGIC ROADBOOK

1. Customer Satisfaction

In 2004, Eurocopter's efforts to improve customer satisfaction have been crowned with success, and the company has now joined the leaders in its category. These improvements concern:
-- The quality of the aircraft delivered (tending to "zero defects")
-- The delivery lead times
-- The shipping of spare parts
-- Satisfying the specific needs of each customer by a unique business interface and a global offer of products/services (PbH, etc.).

This drive will be continued in 2005, notably with the interconnection of 3 logistic hubs (respectively in Hong Kong, Dallas and Roissy), improved Overhaul & Repair cycles, prior training of advisory teams for better anticipation of the needs of each group of customers, and optimum relations with the equipment manufacturers based on the concept of "Shared Success, Shared Effort".

2. Lines of Growth

The strategy for growth adopted by Eurocopter is founded on the excellence of its products and services, combined with an ambitious industrial deployment strategy.

In Australia, the acquisition of a local aeronautical company culminated in the creation of a new subsidiary. Named Australian Aerospace, the subsidiary now ranks 4th in the aeronautical and defense industry in Australia, and is a strong platform for the Air 87(Tiger) and Air 9000 (NH90) contracts.

In the USA, the inauguration of American Eurocopter's new site in Columbus, Mississippi, will strengthen the concept of a US-based venture. American Eurocopter is prepared to meet the needs of the Homeland Security Department (Border Patrol, US Cost Guard), and the FAA has initiated the industrial certification of the Ecureuil/AStar light helicopter. In conjunction with EADS North America, Eurocopter is ready to submit a bid for the US Air Force Personal Recovery Vehicle Project.

In China, an assembly line has been set up for the EC120/HC120 to meet the need for a light helicopter for pilot training and for the civil sector. The development of this helicopter has been confirmed. Eurocopter is planning to open a subsidiary in the near future, and the joint development of a new helicopter with AVIC will start up in 2005.

Development and partnership prospects with countries aspiring to build up their industrial base may also open up in the mid-term.

And who is better placed than Eurocopter to offer not only high-performance and innovative products but also sustainable industrial investments and equitable partnerships?

The subsidiaries, which are a key factor in Eurocopter's strategy, took orders in 2004 worth more than a billion euros. And the excellent performance of American Eurocopter must be cited, the subsidiary winning orders for 101 helicopters in the USA.

Following Spain's selection of the Tiger, Eurocopter has started the industrial process for the Tiger and EC 135 for the benefit of Eurocopter España - the third cornerstone of the Group.


IV. STAYING IN THE LEAD IN THE CIVIL AND PARAPUBLIC SECTOR

In keeping with its winning strategy of "The Right Product at the Right Time", Eurocopter is now marketing upgraded products, such as the AS 350B3 Ecureuil, the EC 135, and the AS 365 N3 Dauphin or EC 225.

The EC 135 fully meets the requirements of its EMS, police, and corporate market sector, where it is proving to be a best seller.

As for heavy helicopters, the latest version of the Super Puma, the EC 225, has won acclaim in the Oil & Gas and VIP sectors.

After making its maiden flight in June 2004, the first production EC 225 received IFR certification in July, and was delivered to the first VIP customer in December.

And the first delivery to the Oil & Gas sector is due in July 2005.


V. MAJOR MILITARY PROGRAMS

--Tiger: The European Tiger combat helicopter was qualified in 2004 - the French HAP version in March and the German UHT version in August 2004.

December marked the launch of the HAD Tiger for Spain and France.

As for Australia's ARH Tiger, the first two machines were delivered in Australia in December.

In 2005, Eurocopter will keep up the deliveries and help the 4 customers with the operational preparation of their helicopters.

--The NH90 Wins Success Outside Europe
With the signature by the Sultanate of Oman for 20 NH90s and the selection of the machine by Australia for its Air 9000 program, the NH90 is now the reference in its category for tactical and naval transport helicopters.

In 2005, Eurocopter will proceed with the qualification of the NH90 and continue to promote it on the export market.


VI. PROSPECTS FOR 2005

In 2005, Eurocopter should significantly increase its turnover and consolidate its leadership.

The drive to enhance customer satisfaction will be kept up in 2005 to consolidate the results obtained in 2004.

The operational preparation of the Tiger and NH90 in the national and export countries will also receive special attention.

The policy of non-stop innovation will continue to apply so that Eurocopter can maintain its technological edge, which is the prerequisite for sustainable development, as is the company's strategic deployment, which will also be continued in 2005.


Eurocopter is a wholly-owned subsidiary of EADS. EADS is a global leader in aerospace, defence and related services. In 2003, EADS generated revenues of 30.1 billion euros and employed a workforce of about 109,000. The EADS Group includes the aircraft manufacturer Airbus, the world’s largest helicopter supplier Eurocopter and the joint venture MBDA, the second-largest missile producer in the global market. EADS is the major partner in the Eurofighter consortium, is the prime contractor for the Ariane launcher, develops the A400M military transport aircraft and is the largest industrial partner for the European satellite navigation system Galileo. "

Iama