Gripen and Varig's foster their strategic partnership

GRIPEN AND VARIG'S FOSTER THEIR STRATEGIC PARTNERSHIP

Gripen International and VEM-VARIG Engineering and Maintenance recently
signed a Memorandum of Understanding to evaluate potential projects in
the areas of logistics support and transfer of technology. As part of
the program of industrial cooperation, required under the government
plan to acquire new jet fighter aircraft, the partners have announced
they are incorporating new features in the agreement signed last
February. The cooperation now envisaged, also covering the aircraft
systems area, including support and development of the tactical
functionality and weapons integration. Based on this, VEM will be the
Strategic Partner to Gripen International and, therefore, be the center
for Gripen technologies in Brazil.

As a result of this new development, and in the event that Gripen
International is awarded the contract to supply Gripen fighter aircraft
to the Brazilian Air Force, the level of industrial cooperation proposed
as part of the Gripen program will lead to the creation of a Gripen
Systems Development Center - GSDC in Brazil.

According to Managing Director of Gripen International, Ian McNamee,
"Gripen Systems Development Center - GSDC, will be the base for a
complete Gripen systems development environment, which could be expanded
to include training simulators for both pilots and ground crew". Ian
added that "the Gripen Systems Development Center can also support FAB
in their development of tactical scenarios to support the continuous
development of the software functions of the Gripen and other programmes
utilizing the latest design engineering and software development tools".

President of VEM-VARIG Engineering and Maintenance, Evandro Oliveira,
says that "this strategic partnership with Gripen International aims at
securing Brazil's autonomy as it is a Brazilian company". Evandro
emphasized, "VEM is taking steps to be ready to absorb such technology".

The Gripen Systems Development Center will include a Gripen Systems
engineering environment with associated simulation capabilities and take
on the following general functions:
Operation of the Gripen Systems engineering environment and associated
simulation capabilities
Be the center of the Gripen software development in Brazil
Be the base for introduction of Gripen design techniques
Maintain configuration control and a local database for Gripen

Once established, the Gripen Systems Development Center will serve as a
hub for all Gripen activities in Brasil and also be developed to support
other military and civil programs.

As part of the process, a group of representatives from VEM visited SAAB
in Sweden last week. The purpose of this visit is to learn more on how
to secure Brazilian autonomy, should Gripen International be chosen in
the bidding process.

"The Strategic Partnership between VEM and Gripen International has been
established as part of VEM's policy to position itself as a Brazilian
source for the Brazilian Air Force for support, maintenance and further
development of Military aircraft in Brasil and to possibly contribute to
the success of current FAB's programs to renew its fleet", says
President of VEM-VARIG Engineering and Maintenance, Evandro Oliveira.

Notes do Editors:

Gripen International is a company owned jointly by Saab AB of Sweden and
BAE SYSTEMS of Great Britain. www.gripen.com

VEM - VARIG Engineering and Maintenance is a Brazilian company that
provides engineering and heavy maintenance (repair and overhaul) for
aircraft and its components. www.varigvem.com.br

For further information, please contact:
Owe Wagermark, Communications Director
Gripen International
Phone +46 708 896000

Evandro Braga de Olivera, President
Varig Engineering & Maintenance
Phone +55 21 2468 2126

Celia Santos, Gripen Brazil PR
Phone +55 11 30373225

www.gripen.com www.gripen.com.br



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