Saab AB signs a Memorandum of Understanding with Terma

Nordic Business Report, Nov 3, 2006

NORDIC BUSINESS REPORT-3 November 2006-Saab AB signs a Memorandum of Understanding with Terma(C)1994-2006 M2 COMMUNICATIONS LTD http://www.m2.com

Swedish high-tech group Saab AB said on Friday (3 November) that it has signed a Memorandum of Understanding with the Danish defence and aerospace company Terma.

The Memorandum should be seen as the initial step in a long-term cooperation between the two parties, Saab said.

The background for the agreement is considerations of Danish Ministry of Defence which is in the process of evaluating options for the replacement of the Danish fleet of F-16 fighter aircraft.

Saab is promoting the acquisition by the Danish Government of the Gripen aircraft as its new modern fighter aircraft as one of the candidates for the replacement.

As a first concrete result of the Agreement, Terma and Saab have also signed a contract for production of parts for Gripen. The production will start immediately at Terma's facilities in Grenaa, Denmark.

The contract value is some DKK10m.

Saab is one of the world's leading high-technology companies, with its main operations focusing on defence, aviation and space. The group covers a broad spectrum of competence and capabilities in systems integration.

One British pound (GBP) is worth approximately 11.03 Danish kroner (DKK).

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