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Boeing and Terma A/S Enter Strategic Alliance

Wednesday, March 18, 2009

The Boeing Company [NYSE: BA] and Terma A/S today signed a Memorandum of Agreement that aims to provide Terma a minimum of 30 percent of the industrial-cooperation investments outlined in Boeing's Super Hornet proposal to Denmark. The Super Hornet strike fighter is one of three finalists in Denmark's New Combat Aircraft competition.

"With Boeing's wide scope of business in the defense industry and as a leading producer of civilian and military aircraft, Boeing is an extremely attractive partner for Terma," said Terma CEO Jens Maaløe. "We are cooperating with Boeing on a number of projects, and are looking forward to developing our business further to the benefit of both companies."

As the first in a series of projects under this broad cooperation agreement, Boeing has selected Terma's Electronic Warfare Management System (EWMS) suite as a preferred advanced electronic warfare solution for a number of CH-47F Chinook helicopter offerings to international customers whose requirements extend beyond Boeing's baseline CH-47F offering.

Terma is also set to benefit in a number of other areas with Boeing, including aerostructures and composites. Additionally, Boeing will conduct a feasibility study for the integration of Terma's 3-D audio and Active Noise Reduction technology on the Super Hornet.

Tom Bell, vice president of Business Development for Boeing Military Aircraft, described the agreement as the next step in a broadening relationship between the two companies as Boeing seeks to expand its industrial cooperation with Danish industry.

"Terma is a respected advanced technology leader throughout the international defense and aerospace industries, and has been an important partner in delivering advanced capabilities to Boeing and its subcontractors on a number of Boeing programs, including electronic components and harnesses for the NATO AWACS [Airborne Warning and Control System] and EWMS for the P-8A, the U.S. Navy's newest maritime patrol aircraft," Bell said. "We look forward to additional opportunities to work with Terma, and to continue our strong history of investing for the long term in the regions where we do business."

Boeing's industrial cooperation proposal outlines other areas of industrial benefit to Denmark that leverage products and technologies from across the company and from key Boeing suppliers. Boeing has successfully implemented industrial cooperation programs totaling more than US$29 billion in more than 35 countries over the past 30 years. In Denmark, Boeing has previously executed industrial cooperation programs in support of Harpoon and Joint Direct Attack Munition weapons systems and NATO AWACS sales totaling nearly $34 million.

Hans Skov Christensen, director general and CEO of the Confederation of Danish Industry, commented on the agreement: "Denmark is facing an important decision regarding new fighter aircraft. It is a program with great opportunities for Danish defense industry. Therefore it is important that Boeing, since their DI-hosted conference last year, has been in dialog with many Danish companies and today is signing a major cooperation agreement with Terma."

Source: The Boeing Company


Time Stamp: 3/18/2009 at 4:11:06 PM UTC

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