Raydiance Partners with NASA Ames to Develop Advanced Microfluidics Technology for Space Applications

NASA’s Small Spacecraft Division to Employ Raydiance Smart Light Ultrafast Laser in Building Next-Generation Devices

Defense News ~ PETALUMA, Calif.- January 25, 2010 (EON: Enhanced Online News)--Raydiance Corporation, developer of the world’s first commercial-grade ultrafast laser, today announced it has partnered with the Small Spacecraft Division in the Engineering Directorate at NASA's Ames Research Center, Moffett Field, Calif., to develop advanced microfluidics devices for space-based biological experiments.
“We’re very excited about the additional capabilities the Raydiance system gives us to fabricate complex, multilevel microfluidic devices”
Under the terms of a cooperative agreement funded by the Advanced Capabilities Division in NASA's Exploration Systems Mission Directorate to support a Seed Fund project within NASA’s Innovative Partnerships Program, NASA Ames' experts in fluidic design will employ Raydiance’s Smart LightTM ultrafast laser platform to fabricate next-generation microfluidics devices and components. These will be deployed on free-flying nanosatellites, the International Space Station, and future lunar and planetary research laboratories. Results from this work will advance capabilities for molecular and cellular diagnostics, enable rapid drug discovery and screening, and expand the understanding of the effects of the space environment on biological systems.
“This partnership brings together the powerful and versatile Smart Light ultrafast technology with the world-class microfluidics expertise of the NASA Ames' small spacecraft group,” said Barry Schuler, Chairman and CEO of Raydiance. “The capability to athermally ablate very precise features in transparent polymers and glasses, in addition to ceramics, will enable NASA Ames to rapidly fabricate complex and integrated components on a single microfluidics card. This collaborative work will have large implications for both the research and commercial worlds.”
The work at NASA Ames is led by Dr. Antonio J. Ricco, chief technologist at the Small Satellite Division and John Hines, chief technologist in the Engineering Directorate. Tim Booth, Vice President of Project Management, is coordinating the Raydiance efforts for the project.
“We’re very excited about the additional capabilities the Raydiance system gives us to fabricate complex, multilevel microfluidic devices,” Dr. Ricco said. “We anticipate these devices will be more reliable, let us add new functionality, and be more biocompatible than some other approaches we’ve examined. We should be able to quickly execute design changes as needed to accommodate a wide range of biological and chemical space studies with this new platform.”
About Raydiance, Inc.
Raydiance is a next-generation laser company that has integrated fiber optic, computing and software technologies to create the world’s only broadly accessible, commercial-grade ultrafast laser. Ultrafast lasers create pulses of light with extremely high peak power capable of ablating virtually any material with high precision and no heat. The company is focused on providing transformative, reliable and cost-effective solutions for the medical device, energy, biosciences, consumer electronics and defense technology markets. Its management team, with more than 100 years of experience in computer and laser technologies, is led by Barry Schuler, former Chairman and CEO of AOL.
About NASA Ames Research Center
NASA's Ames Research Center, Moffett Field, Calif., enables exploration through selected development, innovative technologies, and interdisciplinary scientific discovery. NASA Ames provides leadership in astrobiology; robotic lunar exploration; technologies for NASA's next generation space vehicles including the Orion crew exploration vehicle, Ares crew launch and heavy lift vehicles; the search for extra-solar Earth-like planets; supercomputing; intelligent/adaptive systems; advanced thermal protection; and airborne astronomy. NASA Ames develops tools for a safer, more efficient national airspace and unique partnerships benefiting NASA's mission.

Contacts
Raydiance

Adam C. Tanous, 208-450-9060

Director of Marketing

atanous@raydiance.com

or

NASA Ames Research Center,

Moffett Field, Calif.

Rachel Prucey, 650-604-0643

Public Affairs Specialist

rachel.l.prucey@nasa.gov

No danger from engine on A400M maiden flight: Airbus

Defense News ~ BERLIN January 23, 2010, (Reuters) - Technical problems caused an engine to be disengaged during the maiden flight of the Airbus A400M last month, but at no time was the flight in danger, a company spokeswoman said on Saturday.
German magazine Spiegel had earlier reported that a computer and its backup system on the military transport plane failed after 30 minutes of flight, causing the engine to be automatically disengaged. The magazine cited documents from engine maker Europrop.
"Safety was not compromised," the spokeswoman from Airbus Military (Paris:EAD.PA - News) said, adding that it was normal for problems to be raised during test flights.
The A400M's maiden flight on December 11 was two years behind schedule following delays in engine development and other snags that manufacturers blame partly on political interference.
French President Nicolas Sarkozy said late on Friday that he may address the future of the project directly with German Chancellor Angela Merkel. The two are due to hold a regular bilateral summit in Paris on February 4.
"There's progress," Sarkozy told journalists on Friday, adding however that he had not spoken to Merkel about the issue during a phone call on Thursday.
"We both hope that our defense ministers will talk about it, and if they are not successful, we will talk about it to each other," he said.
Europe's largest defense project, the A400M has been ordered by Germany, France, Britain, Spain, Belgium, Luxembourg and Turkey, has been about 25 years in the making, and has become far more expensive to make than had initially been anticipated.
Talks taking place in Berlin over a possible rescue package for the troop plane ended in stalemate on Friday with no new proposals, after Airbus and buyer nations failed to narrow glaring differences over who should pay for the extra costs.
The parties have agreed to keep negotiating to try to reach a deal by January 31.
(Reporting by Brian Rohan and Kerstin Doerr; Editing by Toby Chopra)

Boeing wins $324 mln order for French AWACS upgrade

Defense News ~ WASHINGTON, Jan 22 (Reuters) - Boeing Co (BA.N) has won an order valued at $324 million to provide France with a mid-life upgrade of its Airborne Warning and Control System (AWACS), the Pentagon said on Friday. The E-3 AWACS Sentry aircraft is based on a Boeing 707 airframe and is used by the United States, Britain, France, NATO and Saudi Arabia.
The Pentagon informed Congress about the possible AWACS sale to France in September 2008 as part of an effort to maintain full interoperability with U.S. and other NATO coalition partners. (Reporting by Andrea Shalal-Esa)

Ethiopian Airlines orders 10 Boeing 737-800s

Defense News ~ NEW YORK, Jan 22 (Reuters) - Ethiopian Airlines [ETHA.UL] has ordered 10 Boeing Co's (BA.N) Next-Generation 737-800s for a total price of $767 million, the airline and aircraft maker said on Friday.
Ethiopia Airlines will invest in additional airplanes to expand its fleet and broaden its network, the companies said.
In 2009, Ethiopian Airlines became the first African carrier to order and operate the ultra-long-range 777-200LR model. It also was the first African carrier to order the 787 Dreamliner, with 10 new planes ordered in 2005.
Ethiopian Airlines is an all-Boeing operator.
The airline operates five 737-700s and two 737-800s. Ethiopian also operates nine 757s, 10 767s and one MD-11BCF (a Boeing Converted Freighter), with a second MD-11BCF arriving in August.

(Reporting by Ilaina Jonas)

Felix Baumgartner Unveils Mission to the Edge of Space

Aerospace Legend Colonel Joseph Kittinger Introduces Red Bull Stratos Research Effort to Capture Data From Mach 1 Freefall

Defense News ~ NEW YORK, NY--(Marketwire - 01/22/10) - Pilot Felix Baumgartner announced today his intention to expand the boundaries of aerospace exploration by attempting to become the first person ever to break the speed of sound with his own body. Baumgartner hopes to ascend in a capsule lifted by a helium balloon to the upper reaches of the stratosphere to at least 120,000 feet and, protected by a full-pressure "space suit," launch a freefall jump that could exceed Mach 1.0 -- more than 690 miles per hour -- before parachuting to Earth. If successful, the Red Bull Stratos mission hopes to establish four world records; the data captured by the mission's world-leading scientists could promise new standards in aerospace safety and enhanced possibilities for human flight.
In a dramatic landscape draped in black and lit in blue on the 40th floor of a New York high-rise, United States Air Force Colonel (Ret.) Joseph Kittinger, who in 1960 launched a stratospheric jump from 102,800 feet that opened the door for space exploration, and whose records Baumgartner aims to break, introduced the Austrian pilot to media from around the world during a briefing in New York City.
"People have been trying to break my records for fifty years, and many have died in the attempt," Kittinger said. "But I believe that with our unique assets, an extraordinary mission team, the dedication of Red Bull, and Felix Baumgartner's outstanding skills, Red Bull Stratos will succeed."
Kittinger, Baumgartner (best known for being the first person to fly across the English Channel with a carbon wing in 2003), Red Bull Stratos Medical Director Dr. Jonathan Clark and Technical Project Director Art Thompson provided an overview of the mission, which we will expect to launch in North America with a target launch date in 2010.
"This is truly a step into the unknown. No one can accurately predict how the human body will react in the transition to supersonic speeds," said Baumgartner. "But we've got to find out. Future aerospace programs need a way for pilots and astronauts to bail out at high altitude in case of emergency."
Clark, who served as a crew surgeon for six Space Shuttle missions, confirmed that data captured from the mission will be shared with the scientific community, and noted that he expects long-awaited medical protocols to be established as a result. He also commented, "I think one of the most profound benefits of Red Bull Stratos is going to be the inspiration for our youth... The kind of stuff Felix is doing is like the early astronauts and cosmonauts."
Red Bull Stratos has secured specialized technical communications from Riedel Communications that will facilitate the coverage of the Red Bull Stratos mission with a live TV broadcast and live webcast delivered by Microsoft Silverlight. In parallel the mission will also be streamed on mobile platforms through a mobile application powered by Ovi by Nokia. Global broadcaster, the BBC, will produce a special 90-minute documentary, which will air exclusively in the US on the National Geographic Channel and be distributed globally to national broadcasters by BBC Worldwide.

The Red Bull Stratos trailer can be viewed and shared at www.redbullstratos.com.
A live satellite feed of news footage from the press briefing today in New York will be available for downlink today at 5 p.m. EST via the coordinate details below:
US BROADCASTERS 17.00 EST/ 22.00 - 17.15 EST/ 22.15 GMT
Please access the feed by using the 'Treehouse loop #1407', at Ascent New York (also known as the Waterfront Switch).
For hi-res images, B-Roll, web videos, and additional press materials, throughout the project please visit: www.redbullstratos.com/newsroom.
Notes to editors:
Red Bull Stratos content can also be accessed as well as other Red Bull productions at www.redbullcontentpool.com.

BBC Documentary:
An exclusive, all access documentary about the Red Bull Stratos project is being produced by the BBC and National Geographic. The feature-length film, "SPACE DIVE," will premiere in the US on National Geographic Channel and in the UK on BBC-2 a few weeks after the jump in 2010. It will be aired across the rest of the world soon after. "SPACE DIVE," the 90 minute documentary about Red Bull Stratos is being globally licensed and distributed to broadcasters by BBC Worldwide.

Red Bull Stratos is proud to share this mission with the following partners:
Nokia
As the official global mobile sponsor, Nokia has developed the Red Bull Stratos application to monitor this groundbreaking project. Available exclusively through Ovi Store by Nokia, users can learn more about the mission's progress by reading articles and watching videos from the Red Bull Stratos team of experts. Nokia users can also follow the countdown, stream the final jump in real-time and watch Felix Baumgartner's pulse race by monitoring his biometrical data before, during and after the jump. Once complete, the app will deliver unique content about mission Red Bull Stratos direct to handset. For more information please visit http://www.ovi.com.

Microsoft
Microsoft is the global media technology partner for Red Bull Stratos. Microsoft's Silverlight and IIS Smooth Streaming technology bring an interactive live experience in High Definition to web viewers worldwide. To learn more, visit http://www.microsoft.com/silverlight.

Riedel Communications
Riedel Communications -- renowned for its pioneering advanced fiber, intercom and radio technology -- provides the entire communications solution for this outstanding project, integrating both wireless and wired digital intercom systems. Additionally, Riedel furnishes the fiber-based video and signal distribution as well as the wireless video links to the capsule's onboard cameras -- enabling stunning pictures to be delivered from the Red Bull Stratos capsule. Please visit http://www.riedel.net.

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NACE CORROSION 2010 to Deliver Problem-Solving Depth in Multiple Markets

Defense News ~ HOUSTON--(BUSINESS WIRE)--NACE International, The Corrosion Society, has released details for the upcoming CORROSION 2010 Conference & Expo, the world’s largest annual conference dedicated to mitigating the costly global impact of corrosion. Recently, the annual cost of corrosion of the world’s critical infrastructure was found to be over $1.8 trillion by the World Corrosion Organization.
The annual event will take place in San Antonio, Texas, March 14 to 18, 2010 and will deliver a comprehensive array of meetings and symposia across a broad spectrum of industries. CORROSION 2010 details can be found at http://events.nace.org/conferences/c2010/c2010.asp.
CORROSION 2010 will bring together more than 5,000 corrosion industry leaders, executives, and decision makers for workshops, forums, and events. Additionally, over 350 exhibitors from around the world will round out a comprehensive look at the corrosion industry. NACE Annual Conference is the largest corrosion-industry conference in the world.
CORROSION 2010 will include special forums for industries that include Oil, Gas, & Pipeline, including speakers from the Pipeline and Hazardous Materials Safety Administration (PHMSA); Water/Waste Water; Power Generation & Nuclear Power, Transmission & Distribution; Offshore & Deepwater Oil Exploration; Powder Coatings; Marine & Shipbuilding; and much more.
This year will again feature Corrosion & Punishment, one of the most popular forums ever at CORROSION. New in 2010 will be a concurrent event, the Corrosion Management Conference, designed for management involved in asset integrity, risk and life-cycle management, maintenance optimization, and corrosion control for the oil and gas pipeline industry.
The Advanced Program for this 64-year-old event is available online. Attendees, participants, and exhibitors from around the world are encouraged to review the program and register today.

NACE International, The Corrosion Society, based in Houston, Texas, has over 22,000 members in 110 countries. It is recognized worldwide as the largest professional association dedicated to protecting people, assets, and the environment from the impact of corrosion. It was founded in 1943, and offers technical training and certification programs, sponsors conferences, and produces industry standards, reports, publications, and software to prevent and mitigate corrosion.

Contact:
NACE International
Cliff Johnson, +1-281-228-6213

Sikorsky Unveils $20 Million CH-53K Helicopter Precision Components Technology Center

Defense News ~ STRATFORD, Conn., Jan. 22 /PRNewswire-FirstCall/ -- Sikorsky Aircraft Corp. today formally opened its new Precision Components Technology Center, launching a new path toward strategic competitive excellence beginning with the manufacture of CH-53K heavy lift helicopter components. Sikorsky Aircraft is a subsidiary of United Technologies Corp. (NYSE: UTX).
(Logo: http://www.newscom.com/cgi-bin/prnh/20060403/SIKORSKYLOGO ) The center will produce major dynamic components of the CH-53K helicopter such as rotating and stationary swashplates, main and tail rotor hubs, and main rotor sleeves. It will showcase the magnitude of the CH-53K helicopter and the unique production challenges presented by its size and technological complexity. Forgings to be machined in the center, for example, will be twice the size of the largest forging produced at the facility to date.
Of UTC's total investment of $130 million in the program, Sikorsky has committed more than $20 million to the Precision Components Technology Center.
"Sikorsky's investment in this new technology center is further evidence of the company's commitment to the CH-53K helicopter program," said Mark Cherry, Vice President, Marine Corps Programs. "The heavy lift mission is critical; the size and complexity of the CH-53K helicopter's critical parts necessitated a center dedicated to its production and design iterations as we continue on our path to first flight. We expect the technology center to leverage a number of the manufacturing improvements incorporated in the development of this aircraft, including identifying critical part characteristics to align with manufacturing process capability."
The center currently employs eight personnel.
The Precision Components Technology Center was designed to allow the development of new product lines with "zero setup time" and quick changeover from one component to another. The equipment in the center has the capability to produce any precision rotor and drive system dynamic component including legacy configurations.
Mick Maurer, Senior Vice President of Sikorsky Operations, said the center's primary focus will be to support the dynamic components of the CH-53K System Development and Demonstration program, but the facility also was created with an eye toward the future.
"The grand opening of the Precision Components Technology Center marks a significant program milestone that demonstrates our commitment to the U.S. Marine Corps and the development of the next generation CH-53K heavy lift helicopter. As we expand our global footprint, Sikorsky continues to invest in state-of-the-art manufacturing capabilities that offer a unique competitive advantage in the advancement of flight-critical dynamic component technologies," Maurer said.
Sikorsky Aircraft received a $3 billion System Development and Demonstration contract on April 5, 2006 to develop a replacement for the U.S. Marine Corps CH-53E heavy lift helicopter. The new aircraft program is planned to include production of more than 200 new aircraft. Development money and production quantities will be determined year-by-year over the life of the program based on funding allocations set by Congress and Pentagon acquisition priorities.
Its predecessor, the three-engine Sikorsky CH-53E SUPER STALLION™ helicopter, is the largest, most powerful marinized helicopter in the world. It is deployed from Marine Corps amphibious assault ships and land bases to transport personnel and equipment and to carry external (sling) cargo loads.
The CH-53K helicopter will maintain virtually the same footprint as the CH-53E aircraft, but will nearly triple the payload to 27,000 pounds over 110 nautical miles under "hot high" ambient conditions. The CH-53K helicopter's maximum gross weight (MGW) with internal loads is 74,000 pounds compared to 69,750 pounds for the CH-53E aircraft. The CH-53K helicopter's MGW with external loads is 88,000 pounds as compared to 73,500 for the CH-53E helicopter.
Features of the CH-53K helicopter include: a joint interoperable glass cockpit; fly-by-wire flight controls; fourth generation rotor blades with anhedral tips; a low-maintenance elastomeric rotor head; upgraded engines; a locking cargo rail system; external cargo handling improvements; survivability enhancements; and reduced operation and support costs.
Sikorsky Aircraft Corp., based in Stratford, Conn., is a world leader in helicopter design, manufacture and service. United Technologies Corp., based in Hartford, Conn., provides a broad range of high technology products and support services to the aerospace and building systems industries.
This press release contains forward-looking statements concerning potential production and sale of helicopters. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to changes in government procurement priorities and practices, budget plans or availability of funding or in the number of aircraft to be built; challenges in the design, development, production and support of advanced technologies; as well as other risks and uncertainties, including but not limited to those detailed from time to time in United Technologies Corporation's Securities and Exchange Commission filings.

General Dynamics Awarded $118 Million by U.S. Navy for Common Missile Compartment Work

Defense News ~ GROTON, Conn., Jan. 22 /PRNewswire-FirstCall/ -- General Dynamics Electric Boat has been awarded a $118 million contract modification by the U.S. Navy to continue concept studies, engineering and design of a Common Missile Compartment for the United Kingdom's Successor ballistic-missile submarine and the U.S. Ohio replacement submarine. Electric Boat is a wholly owned subsidiary of General Dynamics (NYSE: GD).
The award modifies a $76 million contract announced in December 2008 for engineering, technical services, concept studies and design of a Common Missile Compartment for the next-generation ballistic missile submarines under development for the Royal Navy and the U.S. Navy.
If all options are exercised and funded, the overall contract would have a value of more than $600 million.
General Dynamics, headquartered in Falls Church, Va., employs approximately 92,300 people worldwide. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. More information about General Dynamics is available online at www.generaldynamics.com.

New Satellite Internet Service Offered to Military Personnel in Afghanistan

Defense News ~ KABUL, Afghanistan, January 22 /PRNewswire/ -- TS2 Satellite Technologies company is introducing new broadband services on Eutelsat EB4 & W6 satellites to the Afghan market.
These types of telecommunication products are mainly used by the companies that execute contracts in Asia, as well as by the soldiers that are stationed in Afghanistan. Purchased bands gives TS2 unlimited possibilities of configuration and setting any telecommunication connections from the Near East region and South-Western Asia.
The broadband service offers two-way high-speed Internet access with no phone lines, no cable, no dial-up modem. It's always online, available virtually anywhere, and affordable. The offered satellite system is ideally suited for broadband requirements such as Internet and VPN access to enterprise networks, as well as real-time VoIP and video conferencing.
The Internet connection can be shared with other users via wireless or wired network. Most soldiers deploy with a laptop in hand and a hookup to the Internet in their barracks. This is especially important for the many who are married, and have young children. The Internet access has resulted in major morale improvements. Troops no longer feel cut off from home.
Not all the Internet connectivity is just for staying in touch with the folks back home. The troops in Afghanistan use the Internet a lot for professional tasks, and not all of them are official business. Some troops blog, and many other stay in touch with military friends and associates in other parts of the world. The Internet has made possible many online communities composed of military professionals.
Without the new satellite system, large numbers of soldiers will be without regular communications for much or most of their time in Afghanistan. The infrastructure is spartan to non-existent.
More information on http://www.ts2.pl/en/Internet-in-Iraq-and-Afghanistan

Contact:
Marcin Frackiewicz
TS2 Satellite Technologies
phone +48-22-630-70-70
fax +48-22-630-70-71
http://www.ts2.pl

Research and Markets: Indian Land Combat Systems Market Assessment

Defense News ~ DUBLIN--January 22, 2010, (BUSINESS WIRE)--Research and Markets has announced the addition of Frost & Sullivan's new report "Indian Land Combat Systems Market Assessment" to their offering. (http://www.researchandmarkets.com/research/deef2e/indian_land_combat)
"Indian Land Combat Systems Market Assessment"
The Indian Army's Innovative Makeover Strategy is set to Spur the Indian Land Combat Systems Market
The Indian army's strategy to upgrade itself with advanced technology along with the socio-political environment in South Asia is driving the Indian land combat systems market. The relationship between the public and private sector enterprises is going to prove critical for this market to experience significant growth in the next decade. "The Indian army's strategy to upgrade obsolete platforms and technologies is the major driver for this market," says the analyst of this research. "Investments for the procurement of new platforms are expected to increase over the next decade with regional and internal security high priority for the Indian defence establishment." India has a host of potential regional aggressors that is driving the country to invest in advanced defence technologies to gain an edge over its adversaries. Moreover, India faces internal security issues with separatist sentiments and potential threat from naxalites high in several regions.
However, a key challenge for the Indian land combat systems market is the public-private partnership (PPP). Although this issue is perceived negatively by the media and the common man, PPP will play a significant role in propelling the Indian defence industry to its zenith in the coming years. Additionally, understanding implementation pipelines is critical for the growth of this market. "As some procurement happens over a period of more than a decade, the timing of arrival of orders is critical," explains the analyst. "The government should manage its resources with utmost diligence to overcome this challenge."
Market participants should provide integrated solutions, identify effective business partners, and develop efficient supply-chain strategies. "Soldier modernisation programmes and the increasing use of electronics equipment could offer considerable revenue potential in the form of support contracts and life capability management," concludes the analyst. "The Indian army's expenditure on land-based training and simulation is anticipated to be $261.4 million by 2019, spurred on by increased procurement of land based platforms."
Market Sectors
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
*Main battle tanks
*Artillery
*Missiles
*Vehicles
*Communication
*Firearms
This Frost & Sullivan research service titled Indian Land Combat Systems Market Assessment identifies the major procurement programmes of the Indian army over the next decade. The objective of this research service is to provide market forecasts for land combat systems from 2009 to 2019. It also aims to capture the critical issues that drive and restrain the market and addresses the major challenges facing the Indian land combat market. In this research, Frost & Sullivan's expert analysts thoroughly examine the following market segments: main battle tanks, artillery, missiles, vehicles, communication, and firearms.
Key Topics Covered:
1. Executive Summary
2. Research Methodology
3. Industry Challenges, Market Drivers and Restraints
4. Country Analysis
5. Key Programs
6. Indian Land Combat Systems Market Forecasts
7. Future Programs Under Consideration from the Indian Army
8. Strategic Recommendations and Conclusions
For more information visit http://www.researchandmarkets.com/research/deef2e/indian_land_combat

Contact:
Research and Markets
Laura Wood, Senior Manager,
press@researchandmarkets.com
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716

Pentagon underscores commitment to F-35

By Andrea Shalal-Esa

Defense News ~ WASHINGTON, Jan 21 (Reuters) - Deputy Defense Secretary William Lynn on Thursday underscored the Pentagon's commitment to Lockheed Martin Corp's (LMT.N) $300 billion F-35 fighter jet, saying the U.S. government and its allies still planned to buy 3,000 of the new fighters over time.
"We are heavily investing in the F-35. A successful Joint Strike Fighter is at the heart of our continued air superiority," Lynn told industry and military officials at a conference hosted by Tufts University and the Institute for Foreign Policy Analysis.
Draft budget documents obtained by Reuters show the department will request $10.7 billion to continue the F-35's development and buy 42 aircraft in fiscal year 2011, 10 less than initially planned.
The Pentagon "has adjusted F-35 procurement quantities based on new data on costs and on likely orders from our foreign nations partners and realigned development and test schedules," the document said without giving details.
Lynn, speaking to reporters after his speech, acknowledged the program had run into some problems typical of large new weapons programs, but said the department was implementing steps to bring the program back "in line."
He said there was no plan to halt work on any of the three variants of the radar-evading new fighter jet. "There's no thinking of changing that kind of fundamental," he said.
Asked if the program could breach cost thresholds that would trigger a notification to Congress and a life-or-death program review, Lynn said Pentagon officials would address that issue next week.
He said he was aware of reports that Britain could halve its proposed buy of F-35 fighters for an aircraft carrier due to rising unit costs and increased budget pressures, but said the British had not yet made a final decision on the issue.
Lynn said he did not anticipate that any such cuts would increase the unit cost of the new fighters and undermine its business case as a relatively low cost replacement for Lockheed's F-16 and 12 other warplanes.
"There's always going to be puts and takes on orders. I think the fundamental core of the buy is still there -- it's going to be several thousands purchased," Lynn said. "I don't think there's a threat there right now."
A senior Pentagon official told Reuters in November that a "couple" of unnamed co-development partners were delaying planned purchases of the jet, a move that will boost initial prices of the costliest ever U.S. arms purchase.
Eight international partners have co-financed the F-35: Britain, Italy, the Netherlands, Turkey, Canada, Australia, Denmark and Norway.
Northrop Grumman Corp (NOC.N) and Britain's BAE Systems (BAES.L) are Lockheed's key subcontractors on the new fighter.
(Reporting by Andrea Shalal-Esa; Editing by Phil Berlowitz)

New ATI Radeon E4690 MXM Delivers Blazing-Fast Graphics for the Embedded Market

New Industry Standardized Module Offers High-Performance Graphics and Superior HD Video Playback in a Compact Form Factor

Defense News Updates ~ TAIPEI, Taiwan--January 22, 2010, (BUSINESS WIRE)--At the DIGITIMES Tech Forum (DTF) 2010, AMD (NYSE: AMD - News) today introduced the ATI Radeon™ E4690 Mobile PCI Express module (MXM) for the graphics-intensive embedded systems. The industry-standard MXM 3.0 specification for graphics subsystems calls for reduced power, improved cooling capability and a lower z-height, enabling designers to create smaller, more efficient embedded systems and speed time to market. The ATI Radeon E4690 MXM features more than triple the 3D graphics performance of previously available solutions with low CPU utilization and brilliant picture quality.1 With its massively parallel, programmable architecture, the ATI Radeon E4690 MXM is designed for compute intensive, embedded applications such as digital signage, image recognition, signal processing and surveillance, arcade and casino games, medical imaging, and more.
Working in collaboration with ALT Software, a leading supplier of 2D and 3D graphics, AMD is able to offer customers an alternative to custom programming by developing a standards-based parallel processing API, helping them to improve performance in embedded computing systems by leveraging the power of the graphics processor (GPU). For example, the GPU has become a standard hardware component in many aerospace and defense systems, making it an ideal parallel processing solution.

Unsurpassed Performance, Power Efficiency, and Flexibility
*The ATI Radeon E4690 MXM features 512MB of on-board GDDR3 memory, 320 shader processors, a comprehensive set of display output options and adjustable system clocks for exacting power and performance requirements.
*As the industry’s only embedded graphics chip to offer support for both Microsoft DirectX® 10.1 and AMD’s Unified Video Decoder 2 (UVD 2), the ATI Radeon E4690 MXM enables competitive advantages for AMD’s embedded customers by providing outstanding graphics support coupled with high quality video playback performance.
*Incorporating ATI PowerPlayTM intelligent power management technology, the ATI Radeon E4690 MXM is designed to optimize power consumption and enable exceptional performance per Watt for power sensitive embedded applications.
*System designers have ultimate flexibility with a comprehensive selection of outputs including dual independent display controllers, integrated DisplayPortTM, integrated single & dual-link LVDS, integrated single & dual-link DVI/TMDS/HDMI and analogue outputs.
*Supported by ATI Stream technology, the ATI Radeon E4690 MXM can replace numerous system hardware components (e.g. FPGAs, DSPs etc.), helping to reduce overall system power, size, and cost.

“As the graphics requirements for embedded systems continue to increase, AMD has armed the ATI Radeon E4690 MXM with features that are important to our customers and done so within an industry-standard specification that helps simplify design, development and market delivery,” said Richard Jaenicke, director of Embedded Discrete Graphics for AMD. “Based on the successful ATI Radeon™ E4690 GPU, the ready-made ATI Radeon E4690 MXM solution provides the graphics performance, energy efficiency and reliability customers need. This, coupled with the module’s five year product life cycle, makes the ATI Radeon E4690 the easy answer for system designers looking to gain competitive advantage in the marketplace.2”
“The ATI Radeon E4690 MXM module is an ideal solution for our aerospace and defense customers,” says Dan Joncas, VP Sales ALT Software. “Its parallel processing capabilities open up a whole new range of applications including video surveillance, radar processing, target acquisition and synthetic vision. This module is ideal for manufacturers of embedded systems that require high-performance computing and advanced graphics.”

Supporting Resources
Product page: http://www.amd.com/us/products/embedded/graphics-processors/Pages/embedded-display-graphics.aspx
DTF 2010 page: http://www.digitimes.com.tw/seminar/DTF_990121.html
About AMD
Advanced Micro Devices (NYSE: AMD - News) is an innovative technology company dedicated to collaborating with customers and technology partners to ignite the next generation of computing and graphics solutions at work, home and play. For more information, visit http://www.amd.com.

Copyright 2010, AMD, the AMD Arrow logo, ATI, the ATI logo, PowerPlay, Radeon, and combinations thereof, are trademarks of Advanced Micro Devices, Inc. Other names are for informational purposes only and may be trademarks of their respective owners.

1) Performance is based on the comparison of ATI Radeon E4600 to ATI Radeon E2400 using 3DMark06 tests run in the similar system configuration: MSI K9A2 Platinum (790FX, SB600), AMD Athlon X2 7850 (2.8 GHz), 2 GB DDR2 800MHz 5-5-5-12, Video Driver: 8.612 RC1 (Catalyst 9.5), Windows Vista Ultimate 32-bit SP1 Note graphics components of 3DMark06 are insensitive to system configuration when there is sufficient frame-buffer size.
2) Availability subject to change without notice.

Contact:
AMD Global Communications

John Swinimer, 905-882-2600 ext. 2704

johnm.swinimer@amd.com

US Air Force says Lockheed missile "back on track"

* Contract underscores support for program
* Work underway to upgrade mechanical fuze
By Andrea Shalal-Esa

Defense News Updates ~ WASHINGTON, Jan 21 (Reuters) - Lockheed Martin Corp's (LMT.N) $6 billion radar-evading JASSM cruise missile is "back on track" after acing 18 of 19 tests since September 2009, the Air Force colonel in charge of the program said on Thursday.
The Air Force on Wednesday awarded Lockheed a $245 million contract to build an eighth lot of 160 more baseline and extended range Joint Air-to-Surface Standoff missiles (JASSM) for the Air Force and foreign military customers.
"With the award of the Lot 8 contract, the Air Force has further expressed its confidence that the program is back on track to continue delivering its unique combination of stealth, standoff precision, and flexibility off of both fighters and bombers," Air Force Colonel Stephen Demers told Reuters.
The Air Force last year threatened to cancel JASSM, a long-range missile designed to destroy fixed and moving targets, after years of repeated technical problems if the next round of tests did not show markedly better missile reliability.
The missile succeeded in 15 of 16 tests last August, assuaging those concerns.
The weapon was declared combat-ready five years ago and has been deployed despite several testing failures, but it faced increased scrutiny as Pentagon officials targeted weapons programs with cost overruns and technical problems.
Demers declined comment on the fiscal 2011 budget, which is due to be released on Feb. 1, but said the program now had the support of the Air Force and Pentagon leaders, and he did not anticipate any "future programmatic issues."
Alan Jackson, director of JASSM programs for Lockheed, said Wednesday's contract brought the total number of missiles under contract to 1,200, about one-fourth the total number of missiles the Air Force plans to buy in coming years.
The missile reached a 94 percent reliability rate in the most recent tests, and has an overall reliability rate of well over 80 percent over the history of the program. The Air Force aims to reach a reliability rate of 90 percent by 2013.
Demers said the Air Force would continue testing the reliability of the missiles, although the number of tests could be reduced in coming years.
In his annual report to Congress, the Pentagon's chief weapons tester acknowledged that testing had shown improved reliability, but said more flight tests were needed to characterize the performance of the weapons.
The report, a copy of which was obtained by Reuters, also raised questions about the Air Force's decision to halt work on an electronic fuze for the missile, noting that 4 of 26 missiles launched in fiscal year 2009 had fuze issues.
"The Air Force should renew the pursuit of the Electronic Safe and Arm Fuze, ensuring the availability of a second fuzing option," said the report.
Demers said the service had funded an alternate program to upgrade the missile's existing mechanical fuze to a model with fewer moving parts, an effort he said would help the missile achieve the reliability target "even faster."
Officials familiar with the issue, who were not authorized to speak on the record, said upgrading the current mechanical fuze would save millions of dollars in development costs.
While industry had developed an electronic fuze, it would be difficult to use on JASSM, they said, noting that the missile is designed to penetrate many feet of concrete.
(Reporting by Andrea Shalal-Esa; Editing by Phil Berlowitz)

ViaSat Awarded First Limited Production Order for MIDS JTRS Terminals

Production marks major milestone in JTRS program

Defense News Updates ~ CARLSBAD, Calif., Jan. 21 /PRNewswire-FirstCall/ -- ViaSat Inc. (Nasdaq: VSAT) has been awarded a Limited Production (LP) order valued at $14.4 million for Multifunctional Information Distribution System Joint Tactical Radio System (MIDS JTRS) terminals for the U.S. government. The LP award resulted from a competitive procurement for 41 terminals through the Space and Naval Warfare Systems Command (SPAWAR). ViaSat was awarded 100% of the terminals in the procurement. The order is being awarded under the MIDS Indefinite Delivery/Indefinite Quantity contract initially executed in January 2000. The MIDS JTRS terminals are for F/A-18E/F and E-8C Joint STARS aircraft and spares.
(Logo: http://www.newscom.com/cgi-bin/prnh/20091216/VIASATLOGO)
The MIDS JTRS program was implemented as a Pre-Planned Product Improvement (P3I) to the current MIDS Low Volume Terminal (MIDS-LVT). MIDS JTRS has completed contractor qualification testing and initial F/A-18E/F integration in anticipation of operational testing in 2010. Pre-production terminals have been undergoing flight tests at Patuxent River Naval Air Station and China Lake Naval Air Weapons Station for several months. The terminal has successfully completed security verification testing and is in the final stages of obtaining NSA certification. ViaSat expects to receive conditional first article approval in February 2010.
MIDS JTRS is a joint development of ViaSat and Data Link Solutions and provides a migration path from the MIDS-LVT to a certified, reprogrammable, software-defined radio architecture for tactical data links. The MIDS JTRS adds three programmable channels to the legacy Link-16 and TACAN capabilities of the MIDS-LVT. The three new channels are designed to host future advanced airborne networking waveforms. MIDS JTRS is "plug-and-play" backward compatible with MIDS-LVT so it can easily replace the MIDS-LVT, but remain interoperable.
About ViaSat (www.viasat.com)
ViaSat produces innovative satellite and other digital communication products that enable fast, secure, and efficient communications to virtually any location. The company provides networking products and managed network services for enterprise IP applications; is a key supplier of network-centric military communications and encryption technologies and products to the U.S. government; is the primary technology partner for gateway and customer-premises equipment for consumer and mobile satellite broadband services; and owns WildBlue, the premier Ka-band satellite broadband service provider. ViaSat also offers design capabilities and a number of complementary products including monolithic microwave integrated circuits and modules, DVB-S2 satellite communication components, video data link systems, data acceleration and compression, and mobile satellite antenna systems. ViaSat is based in Carlsbad, CA, has major locations in Duluth, GA, Germantown, MD (Comsat Laboratories), and Greenwood Village, CO (WildBlue), along with additional field offices and service centers worldwide.
Safe Harbor Statement
This press release contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934, including statements about operational testing, First Article Approval, and deliveries and performance of the ViaSat MIDS JTRS terminal. ViaSat wishes to caution you that there are some factors that could cause actual results to differ materially, including but not limited to: contractual problems, product defects, manufacturing issues or delays, regulatory issues, technologies not being developed according to anticipated schedules, or that do not perform according to expectations; and increased competition and other factors affecting the wireless communications and secure networking industry generally. In addition, please refer to the risk factors contained in ViaSat's SEC filings available at www.sec.gov, including ViaSat's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. ViaSat undertakes no obligation to update or revise any forward-looking statements for any reason.
Comsat Labs and Comsat Laboratories are tradenames of ViaSat Inc. Neither Comsat Labs nor Comsat Laboratories is affiliated with COMSAT Corporation. "Comsat" is a registered trademark of COMSAT Corporation. All additional products are trademarks of their respective owners.

Northrop Grumman Will Enter Competition as Prime Contractor for Missile Defense Agency's Ground-based Midcourse Defense Contract

Defense News Updates ~ HUNTSVILLE, Ala., Jan. 21, 2010 (GLOBE NEWSWIRE) -- Northrop Grumman Corporation (NYSE:NOC - News) today said it will enter the competition as a prime contractor for the U.S. Missile Defense Agency's (MDA) Ground-based Midcourse Defense (GMD) Development and Sustainment contract.
The company cited its ability to leverage extensive experience and best practices from missile-related programs for the missile defense program, commenting on a draft Request for Proposals issued Jan. 19 by MDA.
"We have the core people, processes, and tools in place to deliver robust missile defenses under this contract," said John Clay, vice president of Missile Systems for Northrop Grumman's Aerospace Systems sector. "Northrop Grumman already is well underway in bringing together the capabilities to meet GMD's development, testing, training, operations, support and sustainment challenges."
Northrop Grumman is a primary supplier of technologically advanced missile and missile defense weapon systems, including the ICBM Prime Integration Contract, MDA's Space Tracking and Surveillance Demonstration program, and the Missile Defense Integration and Operations Center, Colorado Springs, Colo.
Northrop Grumman Corporation is a leading global security company whose 120,000 employees provide innovative systems, products and solutions in aerospace, electronics, information systems, shipbuilding and technical services to government and commercial customers worldwide.

Contact:
Bob Bishop
Northrop Grumman Aerospace Systems
310.812.5227
Cell: 310.251.0261
bob.j.bishop@ngc.com

IDGA: Extending Service Life of Aging Aircraft

Defense News Updates ~ NEW YORK-- January 21, 2010, (BUSINESS WIRE)--IDGA’s Cockpit Avionics Summit is the premier military avionics conference in the United States. As the continually aging aircraft fleet is tasked at the highest levels in history, the DoD has outlined road-maps to extend their service life and utility with technological avionics improvements across the board. “At the same time, the growing needs of a constantly changing war environment must be addressed while increased congestion and safety concerns require attention as well,” says Keith Johnson, General Manager of IDGA and 12 year veteran aviator of the US Air Force.
This year’s Cockpit Avionics Summit will detail current efforts and developments in the fields of NextGen requirements and how the DoD will meet the timeline, interoperability, and plans to adapt in an uncertain future. In today’s complex and rapidly changing battle environment, aircraft operators are becoming increasingly inundated with never-before seen challenges necessary for mission success and ultimately safety.
IDGA’s Cockpit Avionics Summit will be held February 9 -11, 2010 at Hilton Old Town Alexandria in Alexandria, VA.
The Institute for Defense & Government Advancement (IDGA) is a non-partisan information-based organization dedicated to the promotion of innovative ideas in public service and defense through live conferences and events. We bring together speaker panels and events comprised of military and government professionals while attracting delegates with decision-making power from military, government, and defense industries. For more information, please visit www.idga.org

Contact:
Marketing IDGA
Andy Kaftan, 646-502-3267
andrew.kaftan@idga.org
www.cockpitavionicssummit.com

US Air Force sees no big changes to tanker terms

* No details on changes to financial terms
* Final competition terms due out next month
By Andrea Shalal-Esa

Defense News Updates ~ WASHINGTON, Jan 21 (Reuters) - The U.S. Air Force is eyeing some changes to "financial arrangements" for a multibillion dollar competition for new aerial refueling tankers, but Pentagon officials declined to say whether that could signal a departure from the fixed price terms they initially sought.
Air Force Chief of Staff General Norton Schwartz said on Thursday he did not expect any substantial changes on the requirements for the tanker, but declined to elaborate on possible changes to what he called the financial arrangements.
Schwartz, speaking to reporters on the sidelines of an aerospace conference, said the Air Force planned to release the final terms for the competition within a month after the release of the Pentagon's fiscal 2011 budget on Feb. 1.
Industry executives have said they expect the terms to be released around mid-February, possibly around Feb. 12.
Schwartz said possible changes to the financial structure of the tanker competition were sparked by the Air Force's dialogue with industry about possible financial risks associated with the proposed contract terms.
Deputy Defense Secretary William Lynn also declined on Thursday to discuss any possible changes, saying the Pentagon and Air Force would explain their views when the final request for proposals (RFP) is released next month.
Pentagon budget documents obtained by Reuters include funding for development of a new aerial refueling tanker at an estimated cost of $35 billion, forecasting a contract award this summer and procurement to start in fiscal 2013.
Northrop Grumman Corp (NOC.N) and Europe's EADS (EAD.PA) won a projected $35 billion contract for 179 tanker planes in February 2008, but the Pentagon canceled it after government auditors upheld a protest filed by rival Boeing Co (BA.N).
Northrop and EADS have told the Pentagon they will not bid for the work this time around unless major changes are made to draft rules for the competition that were released last year.
Asked if he was worried about the prospect of awarding a sole-source contract to Boeing given the long history of the Air Force's attempts to buy new tankers, Schwartz said the clear preference was to have a competition.
"I'm not going to speculate what others might do, but clearly we hope to have two or more offerers," he said. "But the bottom line is again that we on the customer side get to decide what we need."
Congress killed an earlier Air Force plan to buy 100 767-based tankers from Boeing amid a huge procurement scandal that sent a former top Air Force official and Boeing's former chief financial officer to prison for violating federal conflict of interest rules.

(Reporting by Andrea Shalal-Esa; Editing by Tim Dobbyn)

World's Fastest Rad-Hard PowerPC Processor Ready for Space

Broad Reach Engineering Completes Development of BRE440 PowerPC® CPU

Defense News Updates ~ TEMPE, Ariz.--January 21, 2010, (BUSINESS WIRE)--Broad Reach Engineering today announced completion of development and delivery of the aerospace industry’s fastest, highest performance radiation-hardened microprocessor.
“The Rad-Hard BRE440 PowerPC CPU is fully developed, in stock and ready to serve in radiation-rich environments ranging from on-orbit and interplanetary space to nuclear, defense and medical applications,” said Broad Reach CEO Chris McCormick. “With its combination of memory controllers, Ethernet, high speed and low power consumption, the BRE440 chip represents one of the most significant system-on-a-chip advancements for space flight in more than a decade, and is poised to enable a new generation in high-reliability processing solutions. We are currently using this chip on our next-generation GPS receivers and our Mirideon 3U single board computer.”
The device is built on Honeywell’s rad-hard HX5000 150nm SOI process and is based on a PowerPC 440 core licensed from IBM. The BRE440 processor design includes on-chip floating point unit, memory controllers, L2 cache, two Ethernet ports, two serial ports, four DMA channels, EDAC controller and PCI interface. Speed is configurable up to 133MHz and is 2 MIPS/MHz.
About Broad Reach Engineering
Broad Reach Engineering produces spaceflight hardware and software solutions, integrating vehicle design, component design and engineering services for aerospace, scientific, commercial and military customers on four continents and for global space centers and contractors. The company’s radiation-hardened avionics and electronics product lines include the next-generation BRE440 “system-on-a-chip” – the world’s fastest radiation-hardened microprocessor. Founded in 1997, the company has office and laboratory locations in Tempe, Ariz., Boulder, Colo. and Golden, Colo. For more information, please visit www.broadreachengineering.com.

The PowerPC name is a registered trademark of IBM Corp. and used under license there from.

Contact:
Broad Reach Engineering

John Metzger,

303-641-1062

john@metzger.com

SAMSUNG Techwin and SAMSUNG | GVI Security Joining Forces

Will Be One Unified SAMSUNG Product Line

Defense News Updates ~ RIDGEFIELD PARK, NJ and CARROLLTON, TX--(Marketwire - 01/21/10) - Samsung Techwin America and GVI Security Solutions today announced that they will establish a strategic partnership to provide optimal security solutions to both companies' customers that will ultimately lead to one product line. This is in response to the announcement that the Samsung Techwin and Samsung Electronics Video Security Products businesses are being merged effective January 1, 2010, due to the acquisition of the Samsung Electronics Company's Video Security Products business by Samsung Techwin. Both the Techwin and Electronics names will be dropped for the surveillance product line and the company will go to market strictly as Samsung.
"The combination of Samsung Techwin and Samsung Electronics resources are in essence doubling the resources that Samsung is dedicating to electronic security in order to become an industry leader. It will allow us to effectively increase the Video Security Products business and technological capabilities of both companies into a stronger, singularly focused digital video security systems organization. We are taking actions to ensure increasing sales, continued service and customer satisfaction for all Samsung Security Products," said JW Ahn, President and CEO of Samsung Techwin America.
"This is very good news for our customers and the video surveillance market in the Americas," emphasizes Steve Walin, CEO of GVI. "It is only natural, therefore, that we enter into a strategic partnership with Samsung Techwin America, replicating a similar symbiotic relationship we had with Samsung Electronics. Our SAMSUNG GVI Security name will change to SAMSUNG SECURITY."
According to Walin, legacy product lines will be maintained until superior replacements are developed and released, ultimately leading to one cohesive Samsung product line. In Latin America, SAMSUNG SECURITY (formerly SAMSUNG GVI Security) will serve the entire region except for Argentina, Brazil and Chile, where both companies will continue to serve these markets together.
About SAMSUNG Techwin:
Samsung Techwin America is a leading supplier of cutting edge video products to the security industry offering IP, Thermal and Analog Cameras, Network and Digital Video Recorders and LCD Monitors. Office locations on the East and West Coast facilitate extended technical support hours and an extensive inventory permitting same day shipments. Samsung Techwin America is a subsidiary of Samsung Techwin, a four billion dollar organization in the high technology industry. For more information, visit www.samsungcctvusa.com.
About GVI Security Solutions:
GVI Security Solutions (GVI) (dba SAMSUNG GVI Security) is a leading provider of video security solutions to the homeland security, institutional and commercial market segments. GVI offers the complete Samsung line of video security products. GVI recently announced the acquisition of its first owned Intellectual Property (IP) VMS technology called autoIP™. The company offers its products and services through local, regional and national system integrators and distributors in North and Latin America. GVI operates sales and support offices in Dallas, Texas; Mexico City, Mexico; Sao Paulo, Brazil; and Bogota, Colombia. For more information, visit www.gviss.com.

Contact:
For More Information, Contact:

Henry Kim

Samsung Techwin America

Email Contact

310-605-3302

Esra Pope

SAMSUNG GVI Security

Email Contact

972-245-7353 ext. 2288

EADS may need finance if A400M efforts fail-report

Defense News Updates ~ BERLIN/PARIS, Jan 21 (Reuters) - EADS (EAD.PA) could be forced to raise new finances if A400M buyer nations fail to agree a price increase for the delayed plane and costs continue to rise, according to a report commissioned for buyer nations.
It does not say how such finances would be raised, but EADS has consistently said it does not need a capital increase.
The report, delivered in December by PricewaterhouseCoopers, a summary of which was obtained by Reuters, lays out the dilemmas facing the Airbus parent and seven European countries being discussed in talks on Thursday.
EADS wants 5.2 billion euros ($7.4 billion) of extra support to complete the transporter project, which is running 7.6 billion euros over budget after planned cost savings, according to the PwC report.
Below are some of the options discussed in the report.
For accompanying tables, please click on
EADS declined to comment on the six-week audit and report.
OPTIONS
PwC considers various options summarized below by Reuters from the textual summary of the audit report.
A) STATUS QUO ("CONTINUATION" SCENARIO)
If the A400M continues with no price increase and EADS is forced to shoulder the entire projected 7.603 billion euro cost overrun, with low cash payments from the nations up to 2013:
* Short-term liquidity would remain adequate
* Gross cash in 2013 would be below a level deemed acceptable by the EADS board
* Credit rating downgrade likely
* EADS still able to access existing funding sources
* Reduced customer payments
* Market reaction (credit downgrade/reduced payments) could have significant negative impact on the Airbus business model.
B) NO PRICE INCREASE AND COSTS CONTINUE TO ESCALATE
The report says that if the projected loss rises above the current 7.603 billion euros, and there is still no price increase, "we believe the group would be unable to continue without a fresh source of financing support".
C) CANCELLATION
* Cancelling the project would have more severe implications for EADS than the "continuation" scenario, the report says.
* There would be a "more adverse" credit rating impact
* Funding sources would likely be restricted.
D) "WALK AWAY"
A scenario in which EADS walks away from the contract (a prospect floated by Airbus officials in recent weeks) would be worse than cancellation due to extra costs and damages claims.
E) FINANCIAL HELP FROM PURCHASING NATIONS
If nations put more funding into the programme from 2010 to 2013, this would alleviate the gross cash deterioriation forecast by PwC and reduce the risk of negative market reaction, the report says.
The report's conclusion said: "Whilst the case for a recurring price increase is not proven, not least because the level of the loss remains unclear, an aggregate increase in A400M funding would reduce the external risks that we (PwC) have identified."
But it warns European purchasing nations that any such increase "should be contingent on gaining assurance on the implementation of much improved programme management controls".
(Reporting by Tim Hepher and Sabine Siebold)