Embraer ERJ 145 Platform Chosen For U.S. Army Program

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Embraer ERJ 145 Platform Chosen For U.S. Army Program




Tuesday August 3, 1:17 PM EDT

NEW YORK (Dow Jones)--Embraer-Empresa Brasileiras De Aeronautica SA (ERJ) said its ERJ 145 platform will be used in the development of the Aerial Common Sensor, an airborne intelligence, surveillance and target identification system for the U.S. military.

Embraer, which makes commercial and military aircraft, will work as part of a Lockheed Martin Corp. (LMT) team with the U.S. government to combine and enhance the capabilities of current systems into a single mission package on an Embraer ERJ-145 platform. The Aerial Common Sensor will replace current reconnaissance aircraft.

Embraer announced plans in 2003 to open a facility in Jacksonville, Fla., for U.S. defense and homeland security programs, and the ACS program is the first slated for this facility. Embraer will announce specific production and staffing details for the Jacksonville facility once a contract schedule is set.



The Lockheed Martin team will deliver five certified, mission ready airborne systems, with initial testing planned for 2006. The balance of the order would be performed under an initial production contract anticipated in 2007, followed by a full rate production contract in 2009.

Embraer said the contract has a potential value of more than $7 billion for the Lockheed Martin team over the life of the expected 20-year program.

An Embraer spokesman doesn't yet know the value of the contract to the company.

New York Stock Exchange-listed common shares of Embraer are trading at $29.10, up $1.36, or 4.9%.

-Jennifer Tershak; Dow Jones Newswires; 201-938-5400; AskNewsires@ dowjones.com





Roger
EWROPS

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