BAE Systems signs support and engineering contract with Falko

With the sale of the BAE Systems portfolio of aircraft and associated asset management
business team to affiliates of certain funds managed by Fortress Investment Group, BAE
Systems Regional Aircraft signed a contract to provide support and engineering
services to the new aircraft asset manager.

As the Original Equipment Manufacturer (OEM) and Type
Certificate Holder, BAE Systems Regional Aircraft will continue to provide the
full range of Total Support solutions to existing and future operators of the
in-service fleet of these BAE Systems aircraft.  These services include
continuing airworthiness support, spares and logistics support,
rate-per-flying-hour spares programmes, technical support services and
modifications.

In addition, BAE Systems Regional Aircraft retains a
substantive engineering capability, which is also currently deployed on third
party opportunities and which can be made available to Falko as required.

Alan Fraser, Managing Director of BAE Systems Regional
Aircraft commented “We look forward to maintaining our close and effective
relationship with our colleagues in the Asset Management business under its new
ownership and we wish them well in the years ahead.  We will continue to
offer high quality and cost-effective managed solutions for engineering and
customer support.”