On 26 September 2001, THALES announced the completion of the acquisition 
of BAE Systems' share (49.9%) in THOMSON MARCONI SONAR (TMS). 
THOMSON MARCONI SONAR is renamed THALES UNDERWATER SYSTEMS 
and becomes part of THALES' Defence business. The deal makes THALES the 
sole shareholder of THALES UNDERWATER SYSTEMS. 
THALES UNDERWATER SYSTEMS has operating units in France, 
the United Kingdom and Australia, employing more than 2500 people world-wide 
and generating sales in 2000 of 345 million euros.

This acquisition is fully consistent with THALES' multi-domestic strategy - 
THALES UNDERWATER SYSTEMS has a strong industrial presence, 
established good relationships with local customers in France, UK, 
Australia and has a strong export market position. The operation will have 
a positive impact on both THALES UNDERWATER SYSTEMS and THALES. 
THALES UNDERWATER SYSTEMS will play a key role within THALES to 
strengthen the Group's naval equipment and systems supply business 
and will benefit from the Group's support to optimise the penetration of 
export markets. 

With over 50 years cumulative experience in undersea warfare, 
THALES UNDERWATER SYSTEMS is a world leader in its field, the major 
exporter of sonars and allied systems for navies and airforces, and is making major 
advances in civil applications, particularly related to oil exploration. 
THALES UNDERWATER SYSTEMS' technical excellence was recently confirmed by 
the award of the 2087 and 2193 major sonar programmes by the UK Ministry of Defence.