Saab and BAE SYSTMES opens SA National Industrial Participation Office

UK Trade Minister, RICHARD CABORN, opens SAAB & BAE SYSTEMS SA National
Industrial Participation (NIP) Office - NIP Projects potentially worth
US$3,26-bn already launched

Each The UK Minister for Trade, Richard Caborn MP, today officially opened
the Saab-BAE SYSTEMS South African National Industrial Participation
office in Rosebank, Johannesburg.

The SA NIP office is responsible for identifying, processing and
implementing the non-defence offset (NIP) business ventures linked to
South Africa's purchase of 24 Hawk lead-in fighter trainer and 28 Gripen
advanced multi-role fighter aircraft. The office also serves as Saab's and
BAE SYSTEMS's interface with South Africa's Department of Trade & Industry
which is responsible for approving NIP projects and monitoring the
delivery of their economic benefits.

Minister Caborn described the NIP business activity as an important
economic driver that would further the UK's commitment to broadening and
strengthening its commercial and industrial bonds with South Africa at all
levels of economic activity.

"The UK Government fully supports the sale of Hawk and Gripen aircraft to
South Africa. The offset programme impacts economic growth in SA and is
also a force for regional growth and stability," explained Minister
Caborn.

"There is a special axis between the UK and South Africa which is
underpinned with important trade and political relationships. The
forthcoming strategic equity partnership between our national aerospace
companies, BAE SYSTEMS and Denel, is a case in point", he added.

"The South African NIP office combines the industrial muscle of the UK and
Sweden. It will facilitate major trade for South African companies
worldwide based on the global presence of the large Swedish industrial
group, Investor AB, together with BAE SYSTEMS (the joint owners of Saab)
and the many other industrial partners to the NIP programme," explained
Saab-BAE SYSTEMS NIP General Manager, Christer Petren.

"The NIP office also reflects Sweden's full support for South Africa and
its strategic and economic role in southern Africa," he added.

The joint Saab - BAE SYSTEMS' NIP team, which was temporarily based in
Pretoria, began pursuing new business opportunities before the defence
contracts became effective in mid-April this year. To date they have
processed more than 200 proposals and receive new proposals every week. So
far eight of these projects have been approved by DTI and have been
implemented. These include activities in the automotive industry,
procurements, agriculture and export facilitation.

"We are delighted to report that our NIP programme is underway and is
delivering economic benefits to South Africa. These projects have been
assessed and acknowledged by DTI to be worth an estimated US$3,26-billion
over the 11-years of our NIP programme," remarked Petren.

"Since contract effectivity in mid-April this year, in addition to our NIP
programme, we have also made substantial progress in delivering our
Defence Industrial Participation (DIP) programme," explained BAE SYSTEMS
Executive Director for Gripen & South Africa, Stuart McIntyre.

"Examples of our DIP activity include contracts with Denel to manufacture
rudders and ailerons for the 80-100 seat Avro RJ and RJX jetliner, and for
Hawk tailplanes. A contract has been placed with Denel to design and
develop NATO-standard stores pylons for Gripen, involving Uitenhage's
Comau-AIMS. Grintek Avitronics' holds a contract to design and supply
communications control suites for Gripen and Midrand-based ATE' has begun
design work on the new Hawk cockpit which will incorporate South African
avionics. Another example is our contract with Spescom subsidiary, AMS,
which is now supplying BAE SYSTEMS with state-of-the-art Health Usage

Monitoring Systems for Hawks currently being delivered to Australia and to
NATO's Flying Training Centre in Canada and will also be incorporated in
the South Africa's Hawks," added McIntyre.

We are well on track just seven months into the programme to achieve our
challenging offset targets," he continued.

In addition to the eight launched projects, a further 19 have been
submitted to DTI for consideration, of which the Saab-BAE SYSTEMS NIP
office has secured "in principle" approval for three other projects
pending Cabinet and other approvals.

For further information, please contact:
Linden Birns,
PR for BAE SYSTEMS and Saab, Plane Talking Phone: +27 82 568 8031
e-mail: linden@icon.co.za
John Neilson,
VP Communications, Saab-BAE SYSTEMS Gripen Phone: +44 1252 384 795
e-mail: john.neilson@baesystems.com
Jan Ahlgren,
VP Communications & Public Affairs, Saab Aerospace Phone: +46 13 18 39 07
e-mail: jan.w.ahlgren@saab.se

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