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IMMEDIATE RELEASE

Release No: 344-00
June 16, 2000

PROPOSED FOREIGN MILITARY SALE TO EGYPT ANNOUNCED

The government of Egypt has requested a possible sale for co-production of 30,000 M865 and 15,000 M831A1 120mm training ammunition cartridges kits; 660 M865 and 480 M831A1 120mm testing calibration cartridges; also, included contractor technical support, ammunition manufacturing support equipment, combustible cartridge case facility, metal storage container manufacturing equipment, support and test equipment, publications, program management, personnel training and training equipment, U.S. government and contractor technical and logistics services and other related elements of program support. The estimated cost is $77 million.

This proposed sale will contribute to the foreign policy and national security of the United States by helping to improve the security of a friendly country which has been and continues to be an important force for political stability and economic progress in the Middle East.

The proposed sale for co-production of the ammunition will allow the support and sustainment training for Egypt's fleet of 655 U.S. co-produced M1A1 tanks in a self-sufficient manner, using ammunition that is of identical configuration to that used by U.S. forces. This sale will also contribute positively to the experience and readiness of the U.S. industrial base. Egypt, which already has training ammunition in its inventory, will have no difficulty absorbing this additional ammunition.

The proposed sale of this equipment and support will not affect the basic military balance in the region.

The prime contractor is unknown at this time. Award will be made on a competitive basis, however the letter of request from the government of Egypt specified that "the selected prime contractor must be a current active supplier of the 120mm ammunition for the U.S. Army." There are no offset agreements proposed in connection with this potential sale.

Implementation of this proposed sale will require numerous U.S. government and contractor representatives to Egypt for varying temporary periods throughout the timeframe of the co-production. Purposes will be for facility construction, facilitization and proveout, as well as technical and logistical support and program management.

There will be no adverse impact on U.S. defense readiness as a result of this proposed sale.