RNS Number:6608N
Alvis PLC
17 July 2003



17 July 2003

ALVIS PLC

UK ARMOURED VEHICLE ORDERS


Alvis plc is pleased to announce that its UK subsidiary, Alvis Vickers, has
today been selected as winner of the competition to supply the Future Command
and Liaison Vehicle (FCLV) for the British Army.

Subject to final contract negotiations, Alvis Vickers will receive a contract
valued at around #200m to supply almost 500 MLV vehicles. MLV is a 4x4 high
mobility light armoured vehicle providing protection against small arms fire and
mines. The MLV is based on the Iveco LMV vehicle which has been developed for a
major Italian Army programme. For the FCLV programme Alvis Vickers will install
UK mission equipment comprising principally a weapon station, armour pack and
communication systems. MLV is a complete family of vehicles around 7 tonnes
incorporating the latest automotive technology. It will be used in a wide range
of Command and Liaison roles in the British Army, replacing a variety of older
vehicles.

The demonstration phase of the programme will run until 2005, and series
deliveries will take place between 2006 and 2009. This extends the firm UK order
book of Alvis Vickers, the principal current element of which is the Engineer
Tank System which will be delivered 2005-2007.

MLV is a modular design which can readily be adapted to meet other requirements
both in the UK and for export. Alvis Vickers has signed an agreement with Iveco
which provides substantial rights in the export market. The prospects for
additional sales of MLV beyond the core FCLV programme are therefore good.

The UK MOD also announced today that it would not be continuing with the
Multi-Role Armoured Vehicle (MRAV) programme into a production phase as the
vehicle is no longer considered suited to the changing requirements of the
British Army. The UK will negotiate withdrawal from the programme at the
earliest opportunity. Any longer term role for Alvis in MRAV will depend on the
plans of the German and Dutch partners. In any event it would be a small role in
comparison to the work which would have been involved in building vehicles for
the UK.

Whilst the UK decision not to implement production of MRAV is a disappointment,
Alvis needs to be flexible in the face of customer requirements changing in
response to evolving threats. The UK MOD is in the process of launching a
project for a new family of light/medium armoured vehicles known as the Future
Rapid Effects System (FRES), which will absorb some of the roles previously
foreseen for MRAV. Alvis Vickers is well placed to play a leading role in this
project, and success in this, together with work on FCLV, will provide a strong
medium and long-term UK workload for Alvis Vickers. Moreover, both the FCLV
vehicle and the FRES concept are perceived to be well attuned to the long-term
requirements of the export market.

Nick Prest, Chairman and Chief Executive of Alvis plc, commented:

"Winning FCLV is a demonstration of Alvis competitiveness and flexibility. It
provides good long-term business for Alvis Vickers. Whilst the MOD's decision
not to take MRAV into a production phase is disappointing, Alvis's prospects in
the UK market remain very promising."



For more information contact:

Mary Ann Griffiths
Group Communications Manager
Alvis plc, London
Tel: +44 (0)20 7808 8886
Mob: +44 (0)7887 787935
E-mail: maryanngriffiths@alvis.plc.uk
www.alvis.plc.uk


Notes to Editors:

 1. Background information relating to the FCLV programme and MLV vehicle is
    attached on the following pages.
 2. Alvis plc is listed on the London Stock Exchange and is involved with the
    design and production of armoured fighting vehicles and other specialist
    military vehicles. The Alvis Group turnover in 2002 was #225 million.

 3. Other businesses in the Alvis Group include Alvis Vickers and Alvis Bridging
    in the UK, Alvis HTM?gglunds AB in Sweden, Alvis Moelv AS in Norway, Alvis 
    OMC and Alvis Gear Ratio in South Africa.





About the Future Command and Liaison Vehicle Programme

The UK Ministry of Defence has awarded Alvis Vickers Limited (AVL) a contract to
supply 486 Alvis Multipurpose Light Vehicles (MLV) for the Future Command and
Liaison Vehicle programme (FCLV).

FCLV will be used for a wide range of battlefield missions, with variants for
infantry, artillery, armour, engineer and signals users, and will replace the
ageing vehicles that are currently used in these roles. These include the Alvis
Saxon, the Alvis Spartan, the Alvis FV430 series and unarmoured Land Rovers.

The FCLV programme will result in several prototypes being produced in the short
term to complete the "demonstration phase" of the FCLV programme, which will run
until 2005, followed by the series production of 486 vehicles, to be delivered
between 2006 and 2009.


About MLV

MLV is based on the Iveco Defence Vehicles Division (Iveco DVD) LMV vehicle, and
incorporates UK specific mission equipment integrated by AVL.

MLV is a 4X4 high mobility light armoured vehicle, providing protection to
STANAG level 1, small arms fire (5.56mm & 7.62mm ball ammunition) and mine
protection against 6kg anti tank mines under the wheels.

MLV is a complete family of vehicles around 7 tonnes, including state of the art
automotive technology. Amongst the mission equipment added for the FCLV
requirement is a Remote Controlled Weapon Station (RCWS) with a 7.62mm L7A2
general-purpose machine gun, upgradeable to a 0.5" Browning Mk2 machine gun. The
system allows the use of either weapon with minimal hardware change. The RCWS
also houses an un-cooled thermal imager to provide nighttime surveillance and a
colour day camera for daytime target acquisition.

A further un-cooled thermal imager enables the driver to drive at night. In
addition, AVL will design the interior of the vehicle to fit the new digital
Bowman radio for a variety of different roles.

MLV has been designed with safety in mind from the start. The vehicle will meet
the stringent European road legislation for N2G class vehicles, one of the first
military vehicles in its class to achieve this without major concessions against
the regulations. MLV provides protected mobility for up to 4 people in the UK
configuration, although the Italian version provides accommodation for 5 people,
with a longer wheel base version providing protection for 7. This longer
wheelbase options allow the family to expand and meet new requirements in the UK
and overseas.

The vehicle utilises a new modular armouring system, where armour panels are
mounted within the door frames, enabling simple upgrade of the system to higher
threat levels if required. As announced last week all of the modular armour
panels will be manufactured in the UK for the UK, Italian and export programmes.
This cooperation will ensure that in excess of 100% offset will be achieved for
FCLV (the Italians will purchase 2500 armour kits for their programme), and
through the marketing agreement the opportunity exists to provide further work
for AVL and other UK suppliers, supporting and creating employment in the UK.

MLV will be built by AVL in the UK (for the FCLV and any AVL export programmes)
in parallel with manufacture in Italy for their national requirements and this
order provide short and medium term job security for a significant number of
employees within AVL and other suppliers in the UK.

MLV General Specification:

Dimensions                          Mechanical Components

Wheelbase (long        3500 mm
wheelbase available)   

Length                 4687 mm      Engine
                       

Max width at PUR       2050 mm      Type                 Iveco FI C, common
wheel arches                                             rail Euro III

Max height             1950 mm      Output               185 HP at 3700 rpm
                                                         (DIN 70020)

Approach angle         58o          Torque               456 Nm at 1800 rpm
                                                         

Departure angle        43o          Total
Ground clearance       473 mm       displacement         3000 cc
under belly            

Turning circle         14000

                                    Gearbox

Weights                             ZF6HP26 6 speed automatic gear box, 6
                                    forward gears plus reverse
Gross Vehicle Weight   7200 kg
(typical)              

Payload                1200 kg

Total                  7000 kg     Brakes

Front axle             3500 kg     On-board disc type, front and rear

Rear Axle              3900 kg     Air over hydraulic system

Towing capacity        4200 kg     Off-road ABS
                       



Performance                        Electrical System

Max speed              >130 km/h   24 V, according to MIL-STD 1275A(AT)
                       
Min speed approx       4 km/h      Black-out lighting system
                       
Gradeability           >60%        90A/24V alternator or dual voltage
                                   alternator

Side slope             >30%        EMC to MIL STD 461/D

Fording depth without  850 mm
preparation         

Range                  >500 km
                      

Step                   500 mm

Climatic operating     -32/+49oC
range                  



    The Company reserves the right to change these specifications.






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