Agreement to produce JSF parts valued at approx. NOK 1 Billion

Today Kongsberg Defence & Aerospace has signed a final long-term framework agreement with Lockheed Martin for the production of parts in composite and titanium for the new Joint Strike Fighter (JSF - F-35 Lightning II) fighter craft. The agreement is a result of negotiations conducted against the background of the Framework Agreement signed in January 2007, and it could have a potential value of approx. NOK 6 billion if Norway were to choose the JSF as the future fighter craft for the Royal Norwegian Air Force.

This agreement entails that KONGSBERG will be the exclusive supplier of the aforementioned aircraft components during the first phase of serial production of the JSF, and it applies to parts for 306 aircraft valued at approx. NOK 1 billion. This part of the agreement is not conditional on Norway's upcoming choice of new fighter craft.

The parts will be produced at the new 30 000 m2 plant built in Kongsberg. Production is scheduled for start-up in January 2009 and will last until 2015.

Otherwise, please see the stock exchange bulletin of 23 January 2007.