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Subject: Farnborogh
From: GregorKursell (YZA1850@dbmail.dasa.de) at ccnode
Date: 9/1/98 04:46 PM

Dasa Well Prepared for Integration of the European Aerospace Industry

Daimler-Benz Aerospace (Dasa) is excellently prepared for the imminent integration of the European aerospace industry, Dasa CEO Dr. Manfred Bischoff pointed out on the occasion of Farnborough International 98. "Full order books, top standards in technology, a broad presence on the markets, highly qualified and motivated personnel and entirely competitive structures and processes: these are our contributions to the European Aerospace and Defence Company," he stated. Bischoff, whose company last year achieved a strong operating result and this year expects a further increase in turnover and net annual profit, also drew attention to the broad range of activities in Dasa's portfolio. "Dasa's range of products is one of the most comprehensive in Europe," added the Dasa CEO. The company was therefore in a position to contribute capacities in all fields to the planned European Aerospace and Defence Company.

In 1997, the Dasa business year showed a turnover of DM 15.3 billion and an operating profit of DM 432 million according to U.S. GAAP. At the end of 1997, the company had 43,521 employees. In the first half year of 1998, the company realized a growth in turnover of 13 per cent and 368 per cent in terms of operating profit compared to the first half year of 1997.

Through the Civil Aircraft Business Unit, which is indentical with Daimler-Benz Aerospace Airbus GmbH (Hamburg), Daimler-Benz Aerospace holds a share of 37.9 per cent in the European Airbus Industrie. Since 1992, the final assembly line of the A321 has been located in Hamburg. In addition, final assembly of the smallest member of the Airbus family, the A319, has also taken place in Hamburg.

Currently, the focal point of the activities in Dasa’s Military Aircraft Business Unit lies in the development of the European fighter aircraft Eurofighter and the preparations for this aircraft to go into series production. The first prototype successfully completed its maiden flight at Manching/Germany in March 1994. In February 1997, the second German prototype commenced test flights powered by the EJ 200 engine and equipped with the ECR90 radar, this being the status as yet closest to that of the final series aircraft.

Dasa’s Manching plant has been developed into the Dasa maintenance centre for military aircraft deployed with the armed forces of Germany and other NATO countries, with facilities to carry out work on fighter aircraft (F-4, Tornado, MiG-29) and also on transport and mission aircraft (C-160, Breguet Atlantique, AWACS). The improved competitiveness of the Military Aircraft Business Unit was reflected in earnings from the modernization of the Greek Phantom fleet in the fact of keen US competition. In the expanded service and support trade as well Dasa landed an order against US competitors for the surface treatment of 60 A10 Thunderbolts for the US Air Force. A further follow-up order was secured for modernizing NATO’s AWACS fleet. Revenues rose in 1997 by six percent to DM 1.7 (1.6) billion.

The Space Infrastructure Business Unit focuses on Europe's orbital programmes and their operation and use. Dasa, often as the lead company, is responsible for the development and operation of new space transport systems. In the field of conventional and future space transportation systems, Dasa is playing a leading role in the Ariane 4 and 5 launcher business and the development of follow-up systems.

The Satellite Systems Business Unit (Dornier Satellitensysteme GmbH, DSS) is responsible for the development, construction and marketing of satellite systems, payloads, instruments, subsystems and components for civil, security and defence operations in the fields of science, Earth observation, meteorology, communications and navigation. With the order placed in 1994 for the development and production of essential sub-systems for 56 Globalstar satellites, DSS is playing a key role in this satellite-based mobile radio system.

The Defense and Civil Systems Business Unit arose primarily from the former Dasa business field of the same name, with its Sensor Systems, Information and Communication Systems and Guided Missile Systems (LFK GmbH) divisions. Its headquarters are located in Friedrichshafen and it is under the management of Dornier GmbH.

In the operational units Guidance and Command Systems as well as the Mobile and Training Systems of Dornier GmbH at Friedrichshafen, which all form part of the Defense Electronics field, interdisciplinary teams work on solutions to complex security-related problems. In its role as the leading systems company in the area of defence electronics, within the scope of national and European programmes Dornier designs and produces systems for the information network of military units.

The range of products and services of Dasa's Defense Electronics at Ulm comprises the Radio Systems, Ground and Naval Systems, Airborne Systems and Missile Electronics operations. Thanks to its enormous variety of products, Dasa is the world leader in the fields of radar technology, radio communication and electronic warfare (EW). Many of the systems produced there and destined for Army, Navy and Air Force have earned the highest accolades for performance and reliability.

In the course of its strategic orientation in the defence technology field, Dasa has acquired the Siemens Defence Electronics Unit based in Munich-Unterschleissheim. By taking this step, Dasa is strengthening its position in an attractive market and also improving its starting position for the process of European restructuring.

As a systems company, LFK-Lenkflugkörpersysteme GmbH (LFK GmbH) develops and manufactures guided missile systems, primarily within the framework of international collaborative programmes. Such systems encompass firing units, missiles and peripheral equipment. Matra BAe Dynamics have acquired a 30% minority holding in LFK GmbH. This represents an important step in the direction of European restructuring, which is essential to increasing competitiveness in the world's markets. The existing European and transatlantic collaborative projects of LFK GmbH will continue unaffected.

The Aeroengines Business Unit is synonymous with the Dasa subsidiary MTU Motoren- und Turbinen-Union München. MTU has the leading position in this branch in Germany, developing, producing and maintaining engines for passenger and transport aircraft, helicopters, turbo-prop aircraft and combat and training aircraft. Within the framework of international cooperation, MTU is active in all essential areas of technology for an engine such as compressors, combustion chambers, high- and low- pressure turbines or control. MTU is systems integrator for the military programmes of the German Armed Forces.



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