Ann: Remote Weapon System Business Update , page-11

Dear Coopy

There is no clear answer and I think you describe the two sides rather well.

My personal view is that their our now considerable pressures on the US to be seen to be granting contracts to US companies.

The marketing co-arrangement with Northrop will definitely help EOS. I do not believe that Northrop would have sought the arrangement unless they firmly believed that they have a great chance at winning. Remember, this would have to have been justified as a business case internally and some fairly cool headed executives would have had to approve it.

I also like the fact that the DOD is laying down in detail the specs for CROWS 3. It seems to me that the DOD is saying we want something new and we want it the way we want it. This would open up the the competition and allow the DOD to exit from Kongsberg diplomatically.

Also CROWS is definitely not the be all and end all. There will be other major US contracts and the expansion in to Asia is extremely promising.

Cheers Eos