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News Release

BAE Systems Regional Aircraft leases four Jetstream 41s to Yeti Airlines of Nepal

22 May 2006

BAE Systems Regional Aircraft has concluded an agreement with Nepalese regional carrier Yeti Airlines for the long-term lease of four 29-seat Jetstream 41 regional turboprop airliners.

The first aircraft (msn 41072) was delivered to the carriers Kathmandu base in early May and the remaining three aircraft (msn 41066, 41077 and 41078) will follow over the coming months.

Yeti Airlines is a privately owned carrier that first commenced operations in September 1998. It currently operates a fleet of four 19-seat DHC6-300 Twin Otters and three 36-seat Saab 340Bs.

The airline offers the most intensive domestic network of any Nepalese airline with a concentration of flights serving the rural inaccessible areas of the country. It also operates charter flights and works closely with Thamserku Trekking, Nepals largest adventure travel company to offer its famous Himalayan scenic mountain flights which are popular with incoming tour groups. These include flights to Lukla, at 9,100 feet altitude known as the gateway to Mount Everest.

The newly-acquired Jetstream 41s will be used by Yeti Airlines to replace its fleet of Saab 340Bs which are utilised for the Everest sight-seeing mountain flights and for regional flights to destinations such as Pokhara, Biratnagar, Bhadrapur, Bhairahawa and Nepalgunj.

About BAE Systems Regional Aircraft:


BAE Systems Regional Aircraft is responsible for Customer Support, Engineering and Asset Management activities covering a world-wide base of 160 customers operating over 1,100 aircraft in addition to managing a trading and leasing portfolio of some 350 aircraft.

About BAE SYSTEMS


BAE Systems is the premier transatlantic defence and aerospace company delivering a full range of products and services for air, land and naval forces, as well as advanced electronics, information technology solutions and customer support services. With more than 100,000 employees worldwide, BAE Systems sales exceeded GB 15.4 billion (US$28 billion) in 2005.

For further information, please contact:


David Dorman, BAE Systems
Tel: +44 (0) 1582 488336 Fax: +44 (0) 1582 488447 ddaviddorman@aol.com

www.regional-services.com

Ref: 118/2006


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