AgustaWestland Forms Portuguese Subsidiary and Signs AW101 Support Contract

Released on Friday, August 01, 2008

AgustaWestland is pleased to announce the setting up of a subsidiary company in Portugal, called AgustaWestland Portugal, to provide complete helicopter support services. AgustaWestland has also signed a contract with Loca��o de Equipamentos de Defesa SA (DEFLOC) for the long term provision of support for the 12 AW101 helicopters operated by the Portuguese Air Force. The Full In Service Support (FISS) contract will see AgustaWestland take full responsibility for the second level maintenance of the aircraft as well as the provision of spares, repairs and technical support services. The first five years of the 15 year contract is valued at approximately EUR53 million and will result in AgustaWestland Portugal working closely with the Portuguese Air Force and local industry to deliver the FISS. In addition to the FISS contract AgustaWestland has signed an offset contract that includes aerospace manufacturing and engineering services in which AgustaWestland Portugal will play a major role as will other local companies including OGMA, which will be a major subcontractor to AgustaWestland Portugal.

Giuseppe Orsi, CEO, AgustaWestland said "We are delighted to have signed these important agreements. This achievement is evidence of our long term commitment in Portugal and our efforts to get closer and closer to our customers to enhance their operational effectiveness providing the best support solutions as a total capability provider. Furthermore, this contract expands AgustaWestland's presence in an important market where we see significant business opportunities in the future".

These future business opportunities will enable AgustaWestland Portugal to grow in the short and medium term. The Portuguese Ministry of Defence has recently expressed interest in Future Lynx, the Portuguese Navy already being a Lynx operator, which is being developed in the UK to meet the operational requirements of both the British Army and the Royal Navy. AgustaWestland Portugal is another example of AgustaWestland continuing its expansion around the world and follows the recent opening of regional business headquarters in Japan and Turkey. This growth strategy is confirmed by the recent announcement of the 2008 half year results. New orders in the first half of 2008 were EUR 1,618 million, a rise of 10% on the EUR 1,470 million recorded in the same period of 2007.