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our U.S. facility. We hope this site will also grow to handle a fuli spectrum of services as well as new product development for all of central Europę. Having an ILS unit to coordinate the three locations makes sense. Ground-based Support Equipment The main strength of our ILS unit is its ability to look and act beyond the normal repair and replacement of Terma's EW Products. A major focus area is ground support equipment used to maintain and operate products. Ranging from test Systems to mission support tools, the unit aims to think of these as products in themselves, products that desenie the same level of sernice and support as our traditional flight products.

Spare Part Oriented Operations We continue to develop and upgrade our test systems to meet today’s - and tomorrow's - requirements. We look to evolve our mission support products to absorb new technologies and new capabilities. We also transform our repair concept from production linę oriented to spare part oriented operation. An example is our recent transition of one of ourflagship products, the EW Management Unit, to be spare part oriented. This will streamline our repair capability at all three repair locations and shorten repair times for our customers.

Best Practices

Terma's Airborne Systems ILS unit continues to add qualifications and resources as it matures. To be able to provide "best in class" service to our customers, we constantly work to improve all our semices: From providing a solid obsolescence management program to incorporating best practices in failure analysis and prediction, the ILS business unit wants to add to the continued success of Airborne Systems.

INTEGRATED LOGISTICS SUPPORT (ILS)

TERMA UPDATE . FEBRUARY 2010