ST Engineering wins $11 million contract for supply of 40mm ammunition to Sweden

Singapore Technologies Engineering Ltd (ST Engineering) today announced that its land systems arm, Singapore Technologies Kinetics Ltd (ST Kinetics), has been awarded a contract worth about EUR 8 million (about $11 million) by the Swedish Defence Materiel Administration, Försvarets Materielverk (FMV), for the supply of 40mm ammunition. The contract was signed with Advanced Material Engineering Pte. Ltd. (AME), a subsidiary of ST Kinetics. Delivery is planned to take place in 2H2009. ST Kinetics has been supplying 40mm munitions to FMV since 1999. The latest order includes 40mm Low Velocity High Explosive Dual Purpose Self-Destruct (LV HEDP-SD) and Target Practice ammunition, as well as High Velocity High Explosive Dual Purpose Self-Destruct (HV HEDP-SD) and Target Practice rounds. ST Kinetics is today the world's leading provider of 40mm grenade solutions offering various 40mm grenade launcher weapon systems and an unparalleled range of 40mm ammunition including high and low velocity, high explosive, enhanced blast, self-destruct, air bursting, surveillance, insensitive and less-than-lethal rounds. Last year, ST Kinetics announced two 40mm ammunition contracts from UK MoD worth a total of about S$120m. "We are delighted that the Swedish Armed Forces has once again shown their confidence in our 40mm solutions through the award of this ammunition contract amidst strong competition. As a leading Total 40mm Solutions provider, we will continue to innovate and deliver quality solutions for esteemed customers like FMV," said SEW Chee Jhuen, President, ST Kinetics. This contract is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.