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EADS welcomes the decision of the German Bundestag to continue the MEADS programme.

Munich, 28 June 2001

EADS European Aeronautic Defence and Space Company welcomes the decision of the German Bundestag to embark on a three-year risk reducing phase and to continue the definition phase for its tactical air defence system, which is internationally known as MEADS (Medium Extended Air Defence System). The decision was made on Wednesday, 27 June 2001. On the same day, Germany signed the trilateral Memorandum of Understanding to continue the programme. In this way, together with Italy and the USA, Germany is taking the next step in the exploration of options for a system which defends against all types of aerial targets, above all cruise missiles and tactical ballistic missiles.

"The German decision to push ahead with the risk reducing phase of MEADS strengthens EADS/LFK, European missile industry and transatlantic cooperation. We have been able to break new ground with the resolution of difficult technology and knowledge transfer issues so that we can now further develop this high technology field on an equal footing with our American partners and close the gap in extended air defence capabilities. The contract with the companies involved can now be concluded as the next step," states Thomas Enders, Head of the EADS Defence and Civil Systems division.

The aim is to integrate the PAC 3 missile into the MEADS concept, to investigate whether the concept is technologically achievable in a realistic timeframe, and to verify the system performance by means of prototypes which are to be developed for central functions and simulations. On the request of the Germans, investigations of critical fields of technology - which have resulted from the current revisions of the air defence concept - were recently included in the work.

"The aim of the investigations is also to establish reliable cost data to project development and procurement costs, providing a baseline for decision on a future tactical air defence system. The continuation of the work on MEADS will secure not only highly-skilled jobs at EADS/LFK but also our technological competence in the area of air defence systems," explains Werner Kaltenegger, Head of EADS/LFK, a subsidiary of EADS.

The work is being financed by the USA (55 percent), Germany (28 percent) and Italy (17 percent). The German budget in the risk reducing phase amounts to 74 mill. Euro. The involvement of the companies from the participating nations reflects the respective contributions of each national government to the overall costs. The customer of the programme is the NATO agency NAMEADSMA in Huntsville, Alabama. The European partners of the programme, Alenia Marconi Systems (Italy) and EADS/LFK (Germany), have formed the joint venture euroMeads GmbH, which is partnered with Lockheed Martin through MEADS International, Inc.

EADS/LFK plays an important role in the overall design of the system. In addition, it is independently developing sub-systems for the fire control radar, the combat operations centre and the launch system. Furthermore EADS/LFK is investigating the possibilities of the further development of the missile.

In May 1999, MEADS International Inc. won the two-year competition for the definition of the new air defence system. Shortly before this, and in order to further reduce costs and risks, the participating nations had agreed to use the PAC 3 missile for MEADS and not develop a new missile. Furthermore, the participating nations agreed that the three-year risk reduction phase was to be carried out before deciding to proceed to the development phase. These changes required a new tender, which was submitted on schedule in May 2000 and updated until May 2001. The order for the risk reducing phase will be placed on the basis of this offer.

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