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Contact: Andrew Dardine, Research Analyst

Phone: (203) 426-0800

Fax: (203) 426-4262

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E-mail: andrew.dardine@forecast1.com

Forecast International, Inc.

22 Commerce Rd. Newtown, CT  06470 USA

FOR IMMEDIATE RELEASE

Need for Jamming Systems Gives Boost to EW Market

NEWTOWN, Conn. [January 20, 2004] ― Over the next 10 years, defense departments will spend some $21 billion on key electronic warfare (EW) systems, according to "The Market for Electronic Warfare Systems," a new analysis produced by Forecast International.

"Long-term RDT&E appears to be taking a back seat to the immediate needs of equipping active military forces," says the report's author, Andrew Dardine, Aerospace/Defense Electronics Analyst with Forecast International.  The replacement of the U.S. Navy's EA-6B Prowler jamming system is a strong case in point,  illustrating how immediate need is dictating current market projections.  "The systems that have been chosen to take the place of the Prowler represent some of the fastest growing and most lucrative systems in play," Dardine said.

Northrop Grumman's ALQ-218 jamming system upgrades for the EA-6B represent a 10-year value of $678 million.  With the integration of the ALQ-218 into the emerging EA-18G (the EA-6B's temporary replacement), the company will stand to make an additional $644 million in the same timeframe.  A combined total of 220 systems for both applications are expected to be produced through 2013.

Use of the Israeli EL/L-8222 jammer in Operation Iraqi Freedom in March 2003 by the Royal Australian Air Force (RAAF) was identified as critical to the survivability of coalition aircraft.  Meanwhile, the system's prime contractor continues to exploit its technology in the opening of newer markets.

Key IR/EO missile countermeasure systems covered in the analysis include BAE Systems' AAR-57 and Tactical Aircraft Directable IR Countermeasures (TADIRCM) system, and Northrop Grumman's AAQ-24 and Large Aircraft IRCM (LAIRCM).  While new markets apparently are opening up for these devices, it is far from certain at this point who will emerge the winner in the years ahead. Nevertheless, through 2013 a total of $3.4 billion is expected to be spent on the development and production of these systems.

Major contracts continue to be awarded, an indication of the growing interest in EW technology.  The Hellenic Ministry of Defense awarded a $242 million order in April 2003 to Raytheon for the Advanced Self-Protection Integrated Suite (ASPIS) II for the F-16 fleet.  The contract calls for the delivery of 60 suites consisting of the ALR-93 threat warning system, ALQ-187 jammer, and ALE-47 chaff/flare dispenser.

Forecast International, Inc., is a leading provider of Market Intelligence and Analyses in the areas of aerospace, defense, power systems and military electronics.  Based in Newtown, CT, USA, Forecast International specializes in long-range industry forecasts and innovative marketing presentations, including regular 10-year forecasts.  To arrange an interview with Forecast International's analysts, please contact Monty Nebinger (203-426-0800, monty.nebinger@forecast1.com).