L-3 Integrated Systems Awarded United Kingdom Project HELIX Contract

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L-3 Communications announced today that its Integrated Systems subsidiary has been selected to receive a contract worth more than GBP 11.5 million ($21.7 million) from the United Kingdom's Ministry of Defence (MoD).

Upon Main Gate approval, expected in June 2009, L-3 IS will be the preferred contractor to execute the Project HELIX Demonstration and Manufacture contract, which has a projected value of up to GBP 400 million ($756 million), over a 7-year period, with first aircraft delivery scheduled in early 2013.

L-3 IS was selected as the preferred bidder to carry out risk reduction studies for the HELIX Assessment Phase Stage 3, in partnership with the UK MoD. Project HELIX is a major mission system upgrade to the capabilities of the Royal Air Force (RAF) Nimrod R1 electronic reconnaissance aircraft fleet.

L-3, the lead systems integrator and prime contractor, heads a team that includes QinetiQ, LogicaCMG and BAE Systems Integrated System Technologies. QinetiQ will provide electronic reconnaissance technologies and LogicaCMG will contribute ground systems, information management and security services and technologies. BAE Systems will provide aircraft modification, aircraft certification, long-term support and logistics services and some sensor technologies.

"HELIX is a major international award for L-3 and represents our first large program in the United Kingdom," said Michael T. Strianese, President and Chief Executive Officer of L-3 Communications. "We hope to use this contract as a building block for future partnerships with the Ministry of Defence, as well as with our contract team members."

"We have a proud history of cooperation and success with the Royal Air Force in airborne intelligence, surveillance, target acquisition and reconnaissance capabilities," said Bob Drewes, Corporate Senior Vice President, and President and Chief Operating Officer of the L-3 Integrated Systems Group. "Our team has a great opportunity to advance that relationship and develop a long-term partnership with the MoD that provides the British military with vital capabilities in our combined defense efforts."

The modification work on the aircraft will be performed at RAF Waddington, Lincolnshire, England, with final integration and flight testing conducted in Greenville, Texas.

The Nimrod R1 provides electronic reconnaissance and intelligence-gathering support to military commanders and is viewed as a critical component of the UK's Intelligence, Surveillance, Target Acquisition and Reconnaissance (ISTAR) force mix.

QinetiQ (pronounced ki net ik as in 'kinetic energy') is a leading international defence and security technology company that was formed in July 2001 from the UK Government's Defence Evaluation & Research Agency (DERA). QinetiQ has 12,500 employees, who deliver technology-based services and exploit QinetiQ's strengths in technology research by selling systems solutions, products, managed services and licences to government and commercial customers in a spectrum of defence, security and other commercial markets, and by creating technology based ventures.

In February 2006, QinetiQ Group plc was listed on the London Stock Exchange (main market) and joined the FTSE 250 in June 2006. In the year to 31 March 2006, QinetiQ delivered a 39.1 per cent rise in underlying operating profit to GBP 90.7m on turnover which rose by 22.9 per cent to GBP 1,051.7m.

LogicaCMG is a major international force in IT and business services. It employs around 40,000 people across 41 countries. LogicaCMG's focus is on enabling its customers to build and maintain leadership positions using LogicaCMG's deep industry knowledge and its track record for successful delivery. The company provides business consulting, systems integration and IT and business process outsourcing across diverse markets including telecoms and media, financial services, energy and utilities, industry, distribution and transport and the public sector. Headquartered in Europe, LogicaCMG is listed on both the London Stock Exchange and Euronext (Amsterdam) (LSE: LOG; Euronext: LOG) and traded on the Xternal List of the Nordic Exchange in Stockholm. More information is available at www.logicacmg.com/uk.

BAE Systems is a global 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 GBP 13.7 billion pounds sterling (US25.4 billion dollars) in 2006.

BAE Systems has experience in meeting the demands of the rapidly evolving market in defence, homeland security and complex mission critical solutions, as well as logistics management and support. It delivers complete capability solutions within the electronic systems sector, which range from high tech sensors to highly sophisticated command systems, capable of integrating complex information and making mission critical decisions.

To learn more about BAE Systems, please visit the company's Web site at www.baesystems.com.

L-3 IS develops and integrates defense and commercial technology for U.S. and allied customers worldwide. Headquartered in Greenville, Texas, L-3 IS has more than five decades of experience in the development of complex intelligence, surveillance and reconnaissance systems; command and control; and secure communications. It is recognised internationally as a systems integration organisation specializing in the modernization and maintenance of aircraft of all sizes. It is a leader in advanced technologies for signal processing, electronic countermeasures, sensor development and aircraft self-protection. Systems provided or maintained by L-3 IS help protect military and civilian personnel, bases, assets and national borders throughout the world.

Headquartered in New York City, L-3 Communications employs over 63,000 people worldwide and is a prime system contractor in aircraft modernization and maintenance, C3ISR (Command, Control, Communication, Intelligence, Surveillance and Reconnaissance) systems and government services. L-3 is also a leading provider of high technology products, subsystems and systems. The company reported 2006 sales of $12.5 billion - L-3 Communications.

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