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BAE SYSTEMS RECEIVES $55.7 MILLION SOLDIER EQUIPMENT ORDERS FROM U.S. DEPARTMENT OF DEFENSE

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BAE Systems has received two orders valued at $55.7 million from the U.S. Army and Defense Logistics Agency (DLA) for production of Modular Lightweight Load Carrying Equipment (MOLLE) Core Rifleman sets, Ruck sets and components. MOLLE is the primary field equipment system for the U.S. Army and each set incorporates a load-bearing vest, pockets, backpacks and a hydration system. The MOLLE system is a highly adaptable platform that enables soldiers to carry equipment and supplies critical to their mission. “The MOLLE system’s adjustable design allows it to be scaled for specific operational environments which contribute to the overall performance and effectiveness of the individual,” said Joe Coltman, vice president of Personnel Protection Systems for BAE Systems. The $35.7 million DLA order is part of a $374 million multi-year contract awarded to BAE Systems in June 2008. To date, approximately $128.4 million of that contract has been obligated. The $20 million U.S. Army order is part of a $258.9 million contract awarded to BAE Systems in February 2008. To date, approximately $207.9 million of that contract has been obligated. Production for both orders will be completed at facilities located in Arizona, Kentucky, Pennsylvania and Tennessee with deliveries scheduled for completion by July 2009 and March 2010 respectively. BAE Systems has produced over 1.5 million MOLLE sets over the last four years. Employing nearly 2,000 employees at its Personnel Protection Systems’ facilities in Arizona, Kentucky, Pennsylvania and Tennessee, BAE Systems’ Security & Survivability Systems is a technology leader in light weight materials and products including composite, ceramic and transparent armor technologies, integrated vehicle armor systems, vehicle and aircraft survivability components and accessories and soldier protection equipment.

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