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February21,2000

AA 2000: BAe Systems And Boeing Woo KAI

By Edward James/Singapore

SINGAPORE (February 24, 2000) - While BAe Systems was being battered by its European partners the aerospace company was pitching its case with partner Boeing for a stake in Korean Aerospace Industries (KAI).

Lauding the Koreans, BAe Systems executives were touting the maintenance record of the Republic of South Korea Air Force, which operates the company's Hawk trainers.

BAe Systems suggested that it has vast experience in restructuring and production processes, required for KAI success.

Another strength the company says is its export record with 90% of all sales being for export-a key ambition of KAI.

"We will not be offering KAI piecemeal manufacturing, were talking high technology and high value" said one executive.

While Lockheed Martin's pitch is its involvement with the T/A-50 Golden Eagle with Samsung, one of the KAI partners, another view is that with Lockheed Martin on board, selecting BAe/Boeing is adding more capability and exposure to KAI.



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