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Breakthrough for Gripen on the export market

Breakthrough for Gripen on the export market At a ceremony today in Pretoria, an export contract for the supply of 28 Gripen and 24 Hawk to the South African Air Force has been signed. This means that the first export order for Gripen has been secured. Saab was represented at the ceremony at the South African ARMSCOR by President Bengt Halse and Senior Vice President and Manager for Saab AB Gripen Hans Krüger. BAE SYSTEMS was represented by Chief Executive John Weston. Bengt Halse commented: - This is a great success for Gripen, for Saab and for Sweden as an industrial nation. It is the first Gripen export order and as such a success for our Joint Venture with BAE SYSTEMS. We look forward to a partnership with South Africa for at least 30 years. I am convinced that this contract will be the catalyst for extended cooperation between South Africa and Sweden in many areas. John Weston commented: - This contract with South Africa is the first for our Joint Venture with Saab. I am fully convinced that it is the first of several contracts that we can see coming in the future. BAE SYSTEMS strongly believes in Gripen and its potential in the international markets. Hans Krüger commented: - After a very professional evaluation by the South Africans and a year of negotiations, we have concluded a breakthrough order for Gripen. It will be a very important reference in our continued marketing of Gripen. We now have two very qualified Air Forces which have selected Gripen and will have the opportunity to cooperate and exchange operational experiences. The order value for 28 Gripen and 24 Hawk is 15,7 billion Rand including statutory cost like VAT, customs and others. The Hawks will be delivered from 2005 to 2006 and the Gripen deliveries begins in 2007 with the two-seaters and final delivery of the last single-seat Gripen is scheduled for 2012. The Gripen aircraft ordered by South Africa have large similarities with the Batch 3 aircraft ordered for the Swedish Air Force by the Swedish Defence Materiel Administration in June 1997. They contain for example new color displays from Ericsson Saab Avionics, air-to-air-refueling equipment and electronic warfare system to protect the aircraft when attacked by hostile missiles. In the contract Saab and BAE SYSTEMS make commitments concerning industrial cooperation, NIP (National Industrial Participation), with South Africa to a total value of 60 billion SEK. Furthermore, there are commitments concerning DIP (Direct Industrial Participation), which are aimed directly at the defense- and aviation industry. The value of DIP is app 12,6 billion SEK. This economic growth will be generated during eleven years and includes sales in South Africa, export from and investments in South Africa. A good example is Volvo´s recently announced plans of purchases for 7 billion SEK, which represents more than 10% of the total commitment. A week ago, Scania announced an order for 340 buses from South Africa to a value of 320 MSEK. Gripen is one of the world´s most modern fighter aircraft and the first of the fourth generation to enter operational service. 78 Gripen aircraft have so far been delivered to the Swedish Air Force and three squadrons are daily operating the Gripen. Gripen is marketed internationally by Saab and BAE SYSTEMS. Photos are available on www.gripen.se Saab AB is active in the aviation, space and Defense industry and offers advanced products and systems based on sophisticated information technology. The business areas within Saab are Military Aerospace, Space, Training Systems, Commercial Aircraft and Combitech. For further information, please contact: Jan Ahlgren, Vice President Communications and Public Affairs tel +46 13 18 39 07 or Saab AB, Gripen tel +46 70 518 39 07 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/12/03/19991203BIT00270/bit0001.doc http://www.bit.se/bitonline/1999/12/03/19991203BIT00270/bit0002.pdf