Very positive proposition about new MTBs

"The government's proposition to build five new MTBs of the Skjold-class is an important milestone for KONGSBERG. This is also crucial for the series production of Naval Strike Missile (NSM), which is included in the same proposition", says CEO Jan Erik Korssjøen."We are awaiting the Norwegian Parliament's deliberation on this issue in the autumn".

Kongsberg Gruppen, through Kongsberg Defence & Aerospace, is part of the consortium that will deliver the vessels. KONGSBERG will, among other things, deliver the command- and control system. The contract is decisive for KONGSBERG, and will carry a price tag of several hundred million NOK.

In the proposition the government asks the Norwegian Parliament to come to a decision to start building the Skjold-class according to the contract between the Norwegian Navy and the three suppliers Umoe, KONGSBERG and Armaris.

The first vessel of the Skjold-class was delivered to the Navy in 1999. The evaluation of the vessel has shown very satisfying results, and the US Navy has used it for testing and for practice. The Skjold-class is planned to be delivered from the shipyard for the period of 2006-2009. The Skjold-class will strengthen Norway's ability to operate in waters close to the coast. The vessels are also well qualified for international operations.

The decision to purchase five new Skjold-class vessels was made of the Norwegian Parliament June 2001. Since then there have been negotiations between the suppliers and the Navy. Agreement about price and conditions has now been reached.

For further information, please contact:

Kongsberg Defence & Aerospace:President Tom Gerhardsen - telephone (47) 920 60 015Vice President Nils Oddvar Hagen - telephone (47) 920 60 092