Textron Marine & Land Systems to Build Armored Vehicles for Afghanistan National Army

Textron Marine & Land Systems, an operating unit of Textron Systems, a Textron Inc. (NYSE: TXT) company, today announced it has been awarded an Undefinitized Contract Action (UCA) by the U.S. Army Contracting Command, Warren, Mich., to produce up to 440 Medium Armored Security Vehicles (MASV) for the Afghanistan National Army (ANA).

MASVs include nine armored vehicle configurations designed specifically for ANA roles and missions, and are derived from the combat-proven M1117 Armored Security Vehicle (ASV) and ASV Armored Personnel Carrier (APC). In addition to ASV and APC configurations, other mission variants include: command and control, ambulance, engineering, maintenance, mortar, and reconnaissance vehicles.

The vehicles will be contracted through the U.S. Army Foreign Military Sales (FMS) process; however, this effort is being funded through Afghan Security Forces Funds (ASFF).

The one-year baseline contract, with a potential value of $257 million, authorizes initial funding of $125.9 million to begin work leading to the planned delivery of 240 MASVs and associated support equipment, spare parts, field service representatives, training and training aids. Vehicle production will be performed at Textron Marine & Land Systems’ facilities in the New Orleans area, with an estimated completion date of June 2012.

The contract includes options to produce up to an additional 200 vehicles, plus two option years for training and logistics support, with a potential value of $286 million. While these additional vehicles, if ordered, would have an estimated completion date of December 2012, training and logistics support would continue through the first quarter of 2014.

"The ASV continues to play a key role in the U.S. Army combat vehicle fleet around the world with its outstanding readiness rate and versatile mission roles,” said Lt. Col. Mark Morano, product manager, Armored Security Vehicle, U. S. Army Program Executive Office, Combat Support and Combat Service Support. "The protection levels and extreme mobility offer the warfighter and commander a great degree of confidence in safety and mission success.”

All ANA vehicles will be configured with Enhanced Survivability (ES) capability, which improves blast protection to mine-resistant, ambush-protected (MRAP) levels. The new ES-equipped vehicles will continue to possess the M1117 ASV’s original, all-important V-shaped hull design, in addition to innovative protection design features that enable it to meet MRAP blast protection standards.

Reliability and supportability also are reinforced by a Total Package Fielding concept, which includes technical manuals, spares, and comprehensive operator and maintenance training.

"MASVs, and the extensive logistics support package provided with these vehicles, will serve our Afghanistan allies well in efforts to establish peace and security in their country,” said Textron Marine & Land Systems Senior Vice President and General Manager Tom Walmsley.

Textron Marine & Land Systems has delivered more than 3,100 M1117 ASV and related configurations to the U.S. Army, as well as military and police forces in Iraq, Colombia and Bulgaria. These vehicles have consistently achieved exceptional operational readiness and combat availability rates greater than 90 percent over the life of the U.S. Army program. Through May of this year, Textron Marine & Land Systems also has achieved 68 consecutive months of on-time ASV deliveries to the U.S. Army.

Current ASV missions within the U.S. Army include Military Police operations in support of convoy protection, checkpoint security, perimeter security and reconnaissance, as well as Field Artillery Combat Observation and Lasing Teams (COLT) with the M1200 Armored Knight configuration.

About Textron Marine & Land Systems

Textron Marine & Land Systems specializes in the design, production and support of advanced marine craft, armored combat vehicles, turrets and related subsystems. Through its MillenWorks strategic business, Textron Marine & Land Systems designs and develops advanced mobility solutions for demanding on- and off-road applications. Textron Marine & Land Systems serves military and commercial customers domestically and internationally, and is an operating unit of Textron Systems, a Textron Inc. company. More information is available at www.textronmarineandland.com.

About Textron Systems

Textron Systems has been providing innovative solutions to the defense, homeland security and aerospace communities for more than 50 years. Known for its unmanned aircraft systems, advanced marine craft, armored vehicles, intelligent battlefield and surveillance systems, intelligence software solutions, precision smart weapons, piston engines, test and training systems, and total life cycle sustainment services, Textron Systems includes the following businesses: AAI Logistics & Technical Services, AAI Test & Training, AAI Unmanned Aircraft Systems, Advanced Systems, Aerosonde, ESL Defence, Lycoming Engines, Medical Numerics, Overwatch, Textron Defense Systems and Textron Marine & Land Systems. More information is available at www.textronsystems.com.

About Textron Inc.

Textron Inc. is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Bell Helicopter, Cessna Aircraft Company, Jacobsen, Kautex, Lycoming, E-Z-GO, Greenlee, and Textron Systems. More information is available at www.textron.com.

Certain statements in this press release are forward-looking statements which may project revenues or describe strategies, goals, outlook or other non-historical matters; these statements speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements. These statements are subject to known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to, the following:

• Changes in worldwide economic or political conditions that impact demand for our products, interest rates or foreign exchange rates;
• Changes in foreign military funding priorities or budget constraints and determinations, or changes in government regulations or policies on the export and import of military and commercial products;
• Our ability to perform as anticipated and to control costs under contracts with the U.S. Government;
• The U.S. Government’s ability to unilaterally modify or terminate its contracts with us for the U.S. Government’s convenience or for our failure to perform;
• Performance issues with key suppliers, subcontractors or business partners
• Risk that contract options will not be exercised, that vehicle delivery schedules will change or that orders will be cancelled.