2004

RELEASE: IMMEDIATE
CONTACT: Jean Donovan
1-866-697-3732 (NYSERDA) ext. 3516

BAE SYSTEMS IN JOHNSON CITY INVESTS OVER $3 MILLION FOR ENERGY-SAVING IMPROVEMENTS AND FACILITY UPGRADES
NYSERDA Provides Over $850,000 to Assist with Energy Upgrades

Johnson City, New York January 20, 2004 - In a major effort to improve energy-efficiency and upgrade its facility, BAE Systems Platform Solutions is partnering with the New York State Energy Research and Development Authority (NYSERDA) and Siemens Building Technologies, Inc. (SBT) to invest in a comprehensive energy project at its Johnson City operation. In support of BAE Systems' efforts, NYSERDA today presented the company with a check for $857,582.

"The improvements and modifications we've made will help us to use energy more efficiently, reducing operation costs and making us more competitive in the marketplace," said Bill Marshall, Operations Director at the plant. The energy project includes a substantial lighting upgrade in offices, corridors and manufacturing areas; the installation of a highly efficient air compressor to supply compressed air for plant wide use; and the installation of systems that enhance the efficiency of providing chilled water for the company's manufacturing processes.

BAE Systems is also partnering with Siemens to install a clean, natural gas-fueled co-generation unit that will produce about 20% of the plant's electricity requirements. Construction is expected to be complete in the spring of 2004. It is anticipated that the new Cogeneration facility combined with the energy-saving improvements will save the company more than $540,000 in annual energy costs.

"BAE Systems should be commended for this major investment in energy-efficiency that lower energy costs at the facility," said George Akel, member of NYSERDA's Board of Directors, at a check presentation ceremony held today at the BAE Systems plant. "Governor Pataki has stressed the importance of energy conservation and efficiency, and I applaud BAE Systems for its commitment to saving energy in the Southern Tier."

"We're pleased to work with NYSERDA and BAE Systems to help bring about systems efficiencies that enable the company to provide its customers with a competitive advantage," said Pat McParlane, general manager of SBT in New York. "Whenever these improvements enable an employer to reduce costs and increase competitiveness, the entire region benefits."

BAE Systems Platform Solutions, a unit of BAE Systems of North America, is a leading global supplier of integrated electronic control products, subsystems, and man-machine interface systems for air, space, sea, and ground vehicles. Based in Johnson City, the sector employs approximately 6,400 people at 12 facilities in the United States and United Kingdom.

The new systems were developed and implemented by Siemens Building Technologies, Inc. Siemens is a provider of improvements in performance solutions for commercial, industrial, and municipal customers.

Funding for this project comes from the New York Energy $mart^SM Commercial/Industrial Program. All New York Energy $mart^SM programs are funded by a System Benefits Charge (SBC) paid by electric distribution customers of Central Hudson, Con Edison, NYSEG, Niagara Mohawk, Orange and Rockland, and Rochester Gas and Electric. NYSERDA, a public benefit corporation established by law in 1975, administers SBC funds and programs under an agreement with the Public Service Commission.

New York Energy $mart^SM programs are designed to lower electricity costs by encouraging energy efficiency as the State's electric utilities move to competition. The programs are available to electric distribution customers (residential, commercial, institutional, and industrial) who pay into the SBC.