Gripen Offset Program delivers 23.74 billion CZK to the Czech Republic

Defence and Security company, Saab AB, has announced the publication of the Gripen Czech Offset Program annual performance report for the year ending December 31, 2010.

The report, which has been approved by the Czech Ministry of Defence, documents the annual fulfilment of the Program of Industrial Cooperation accompanying the lease of 14 Gripen fighter aircraft to the Czech Republic by the Swedish Government.

2010 highlights:

- Cumulative value of 23.74 billion CZK delivered as of December 2010
- 93% of total offset obligation to the Czech Republic delivered
- 2010 offset transactions valued at 3.82 billion CZK
- 48 registered Gripen offset transactions as of December 2010
- On target to deliver total offset obligation of 25.545 billion CZK

“We are pleased to announce that the Czech Gripen Offset Program continues to perform well, generating value for the Czech Republic and delivering benefits to Czech industry. Our excellent offset delivery in 2010 builds on our previous achievements of surpassing contractual milestones by healthy margins,” says Bengt Littke, Gripen Program Director – Czech Republic.

“The Ministry of Defence has approved the Gripen Offset Program Annual Report 2010. As at December 31, 2010 the total percentage of fulfilment amounts to 93% of the obligation. The Program is in compliance with the approved and signed terms of the Offset Agreement. The Gripen Offset Program means an outstanding long-term asset and stabilization factor for the Czech Defence Industry and other industrial branches as well" says Rudolf Blazek, Deputy Minister of Defence of the Czech Republic.

Background

Czech Gripen Offset Program

Gripen International is contractually committed to generate Offset and Industrial Cooperation to a value equal to 130% of the Gripen fighter lease contract value, which represents 25.545 billion CZK. The Offset Agreement requires a minimum direct Offset equalling 20% of the total Offset Agreement value (direct Offset refers to transactions in the defence, aerospace and security sectors). The Offset Program runs from June 14, 2004 to December 31, 2014.

All aspects of the Czech Gripen Offset Program are governed by the Agreement on the Program of Industrial Cooperation, a bilateral contract concluded between Gripen International and the Ministry of Defence of the Czech Republic. Czech offset legislation applies in the form of Ministry of Industry and Trade Decree No. 19/2010. The Ministry of Defence has the final power to approve or reject offset transactions and offset values within the Czech Gripen Offset Program. The Ministry of Industry and Trade is the administrator and technical guarantor of the Czech Gripen Offset Program, together with the multi-ministerial Offset Commission. In accordance with the contractual conditions, the Czech Gripen Offset Program is subject to annual independent audits.

Gripen
Gripen is a new generation fighter aircraft that employs the latest technology and the latest weapons to deliver the capability for an extensive variety of air-to-air, air-to-surface and reconnaissance operational missions. Gripen is in service with the Swedish, Czech, Hungarian, South African and Thai air forces. The UK Test Pilots’ School (ETPS) operates Gripen as its advanced fast jet platform for test pilots worldwide. Gripen is fully NATO compatible and can be deployed globally. Gripen meets the highest demands of operational deployment.

Gripen International also has successful Offset Programs (Industrial Cooperation) in South Africa and in Hungary.

www.saabgroup.com

Saab serves the global market with world-leading products, services and solutions ranging from military defence to civil security. Saab has operations and employees on all continents and constantly develops, adopts and improves new technology to meet customers’ changing needs.