KONGSBERG signs contract on continued development of JSM

KONGSBERG has today signed a contract for the continued development phase II until 2013 of the JSM (Joint Strike Missile) with the Norwegian Defence Logistics Organization (NDLO). The value is 543 MNOK.

The JSM development started in 2008. A development contract worth 166 MNOK was signed in 2009.

The Norwegian Parliament “Stortinget” voted on 16 June 2011 in favour of starting JSM phase II now and the acquisition of four F-35s in 2016.

"It is of great importance that both the government and the Parliament have endorsed the continued development of the JSM. This shows strong political support for JSM. JSM meets Norway`s and its international F-35 partners operational needs, while the development and its production are important contributions to the industrial content of the F-35 program," says Walter Qvam, CEO of KONGSBERG.

The JSM is a new missile designed to fill an identified operational requirement on the F-35. JSM is the only missile under development that meets the operational requirements and can be internally carried on the F-35. The missile can also be integrated on other platforms.

"KONGSBERG has subcontracted a number of Norwegian companies to participate in the development and to  qualify them for the future development and production phases. In a future situation with full-scale production, the JSM program will engage more than 450 employees at KONGSBERG and could generate significant work for more than 100 Norwegian subcontractors for decades," says Harald Ånnestad, President of Kongsberg Defence Systems.

For further information, please contact: President Harald Ånnestad, Kongsberg Defence Systems Mob: +47 920 60 087 Executive Vice President Pål Bratlie, Kongsberg Defence Systems Mob: +47 930 57 243

KONGSBERG (OSE Ticker: KOG) is an international, knowledge-based group that supplies high-technology systems and solutions to customers engaged in the oil and gas industry, the merchant marine industry, and the defence and aerospace industries. In 2010, KONGSBERG had a turnover of NOK 15.5 billion, and the Group had 5 681 employees in more than 25 countries.

This information is subject to disclosure requirements pursuant to §5-12 of the Norwegian Securities Trading Act.