BAESYSTEMS.com

NORFOLK, Virginia. – BAE Systems has been awarded a contract by the U.S. Navy’s Military Sealift Command to overhaul and drydock the USNS Leroy Grumman (T-AO 195). The cumulative value of the contract could reach nearly $8 million if all options are exercised. The work will take place at BAE Systems Ship Repair in Norfolk and is expected to be completed by March 2007.

As part of the 60-day overhaul package, BAE Systems’ work will focus on inspection of oil tanks and spaces, engine room repairs and refurbishment, underwater hull cleaning and preservation, as well as installation and replacement of various devices aboard the vessel.

“Though our primary customer remains the U.S. Navy Surface Force, we are pleased to continue maintaining the vital Military Sealift Command vessels that sustain these Navy ships during their key missions around the globe,” said Al Krekich, president of BAE Systems Ship Repair. In addition to its surface combatant work in 2006, the company provided major repair and modernization services to 11 Military Sealift Command ships, as well as other government agency and commercial vessels, across its four major yards in Norfolk, San Diego, San Francisco and Hawaii.

The USNS Leroy Grumman, part of Military Sealift Command’s Naval Fleet Auxiliary Force, is a Henry J. Kaiser Class Oiler that provides underway replenishment of fuel to Navy combat ships at sea, enabling them to remain deployed for extended periods of time.

About BAE SYSTEMS
BAE Systems is the premier transatlantic defence and aerospace company delivering a full range of products and services for air, land and naval forces, as well as advanced electronics, information technology solutions and customer support services. With 88,000 employees worldwide, BAE Systems' sales exceeded 12 billion pounds (US22 billion dollars) in 2005, excluding the Group's former interest in Airbus.

For further information, please contact:
John Kowalczyk, BAE Systems
Tel: +1 757-494-2977
Cell: +1 757-717-8391
john.kowalczyk@baesystems.com

Susan Lenover, BAE Systems
Tel: +1 703-907-8259
Cell: +1 703-850-1621
susan.lenover@baesystems.com

www.baesystems.com

Ref: 008/2006

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