Thales Group - Login U.S. Employee Magazine by Nora Connor

4th QUARTER 2008

The in-house magazine for Thales in the U.S.

THALES IN THE U.S.

Surfacing Opportunities 4 14

Business Outlook Homeland Security Communications U.S. Snapshots

table of contents

chairman’s note

Strategy

4 8

Business Outlook People

Innovation 10 10

12 14

New Technologies In-Flight Entertainment Liberty Radio

Highlights 16

Thales U.S. Snapshots

Government 18 20

Focus

2009 Outlook

Partnership Profiles

News

22 26 28

Customer Programs Events Community

Thales Inside Credits

Login to Thales U.S.: The magazine for all Thales employees and joint venture partner companies in the U.S. Published quarterly by the Thales North America Communications department. Produced with valuable input from each division communications team. Publication Director: Chip Sheller. Chief Editor: Katie Fitzgerald. Design and Production: FSC Marketing Communications. Photos and Illustrations: All images © Thales North America unless otherwise noted. All rights reserved. Thales North America, 675 North Washington Street, Suite 400, Alexandria, VA 22314, USA. Printed on Utopia U2. Manufactured with virgin pulp from certified sources and a minimum of 10% post-consumer recovered fiber.

29 30

People OnLine Portal A Branding Story

Chairman’s Message

Welcome to the first edition of the new Login for Thales in the United States. This quarterly publication is an important tool for keeping employees of Thales U.S., and our partner companies stateside, up to date with information across all of our aerospace, defense and security businesses in the U.S.

or those of you that are new to the company, or otherwise unsure how all the pieces fit together in our large, complex global organization, let me quickly introduce myself. I’m Chairman and CEO of Thales North America, what in Thales terms is called the “country corporate” organization. Our country organization is headquartered just across the Potomac River from Washington, D.C. in Alexandria, Virginia. The country organization is structured to achieve two main goals. First, to help integrate the Group’s six divisions in how we position ourselves with customers. And, with customer-related sales and marketing support, we provide “shared services” across businesses, such as healthcare benefits, legal support, government relations help in Washington, branding tools and more. When visiting our sites in the U.S., I’m often asked to describe the primary mission of the Thales U.S. country organization. My briefest possible answer is this –

the country organization serves the Group’s goal of providing employees and customers with the best possible Thales solution, regardless of where the solution is found among our six divisions and 70,000 employees located in nearly 50 countries. Whether providing a best-value healthcare benefit to an employee, or a cross-division set of technologies for a Department of Defense customer, the country and division organizations work toward a shared goal and demonstrate that when Thales’s global and U.S. resources are leveraged, the result is the best possible solution for employees, customers or both. So, what does this newsletter have to do with this broader Thales U.S. mission? We need every Thales employee in the United States to have an understanding of our global and U.S. company, beyond the walls of our respective operations. And, we recognize that your satisfaction as a member of the Thales family requires that you understand the company, our

Allan Cameron Chairman & CEO Thales North America vision for the future and the opportunities that exist for you as a Thales employee. As you know, Thales is by no means a household name in the U.S. Even inside some important government organizations, where Thales technologies might provide the perfect solution to an urgent need, our brand name is largely unknown. Our efforts to elevate the Thales profile in the U.S. starts with each of you, as ambassadors for our brand. Login U.S., along with the People OnLine web portal launched in early 2008, will serve as a primary vehicle for

meeting this objective. Four times each year we will bring you stories that are collected from Thales teams both in the U.S. and abroad. Each story will be written with one main objective in mind – to provide our valued team members with interesting, relevant information that, over time, will help all of us better understand Thales. I look forward to seeing you as I make my way to your site in 2009. In the mean time, happy holidays and best wishes for the New Year.

THALES IN THE U.S.

strategy > business

THALES U.S.

Business Outlook A new President and Administration. Power shifts in Congress. Global economic crisis. Bailouts. An ailing airline industry. What next? And what does it all mean for Thales? These and more questions are top of mind among Thales employees across the U.S., and overseas as well. Seeking answers to these and other questions, Login U.S. editors reached out to some of the company’s senior managers for their perspectives.

nn How would you describe the overall health of Thales’s U.S. business, looking back on 2008 and preparing for 2009?

e all know that the global economic crisis over the past year has presented many challenges for businesses around the world, including Thales. Despite those challenges, however, I continue to be optimistic about our position in the U.S.

Allan Cameron Chairman & CEO, Thales North America [Alexandria, Virginia]

As I meet with our leadership in France, the U.K. and here in the States, there are very common sense actions being put in place to re-focus on our core customers and competencies. Like everyone else, we’re tightening our belt and looking at actions such as supply chain cost controls that can help us weather the short term pressure. 2008 was a very successful year for Thales in the U.S. Of the many positive milestones we saw, several stand out. We ramped up quickly on the FAA’s

modernization program, called ADS-B. This program is a multi-year effort with excellent potential to grow beyond the initial program scope. Thales’s communications business in Maryland was, once again in 2008, helping lead the way toward dramatic growth in the size and scope of Thales’s work for the Department of Defense. Every branch of the U.S. military now has one version or another of this Thales business’ state of the art, interoperable radios. When I’m asked by Thales colleagues overseas whether my optimism for success in the U.S. has been affected by the economic downturn and other pressures, my answer is a decisive “no.” The U.S. defense budget is expected to grow over the next 10 years and will

continue to comprise at least half of all global military spending. In 2008 alone, U.S. military spending exceeded $600 billion – more than twice that of the European nations combined. While our existing activity in the U.S. keeps us all incredibly busy, my view is that just looking at DoD alone, the enormity of the budget and the types of technologies needed by the Army, Navy, Air Force and Marines in the coming years, all of us at Thales should be optimistic, to say the least.

nn Do developments such as the Air Force decision to

delay procurement of a tanker aircraft, potentially involving a foreign-based defense company, signal difficulties for other foreign-based companies such as Thales?

here’s a saying in the defense industry that there are “3 Ps” associated with selling technologies and services to the U.S. government – price, performance and politics. First, you need to invest in R&D so that the products in your portfolio are innovative, unique and meet the needs of the customer. Next, you need to produce your products so that they are affordable to a Defense Department customer who is under constant pressure to find the best value before spending taxpayer dollars. And, while the DoD customer’s focus is getting the best technology into the hands of the war fighter, there are at times pressures on a government buyer to consider which suppliers are manufacturing their products here in the U.S. The government can and should make every effort to spend U.S. taxpayers’ hard-earned money with companies that are reinvesting back into the economy, creating American jobs and otherwise supporting the U.S. industrial base. Finally, if an international company based outside of the U.S. is to be successful selling to the Defense Department or other government customers, it must build its organization in the U.S. with the safeguards required by the customer to ensure that sensitive, sometimes classified, technologies used by the American war fighter are protected. The Thales Communications business I manage has been successful in working with the DoD because we’ve managed each of these parts of the business equation since becoming part of Thales back in 2000. And, while we’re a wholly owned subsidiary of the Thales Group,

Over 150,000 Thales Multiband Inter/Intra Team Radios (MBITR) are deployed with U.S. military forces

we operate as a U.S. “proxy company.” The process by which the DoD approves a company’s status as a proxy company involves very closely managed firewalls and safeguards. Ultimately, the DoD requires strict, monitored compliance with technology safeguard processes to avoid improper disclosure. Bottom line, Thales understands the U.S. market. Our Thales Communications business is one example in which we have the right products at the right price. Our investments in innovation have resulted in tactical communications systems second to none in the world. And, we’re fortunate to have grown to over 600 people working in Maryland on engineering, manufacturing and support for our Department of Defense customers.

Mitch Herbets Chairman & CEO, Thales Communications, Inc. [Clarksburg, Maryland]

Finally, there are policy trends that support our optimistic outlook for the future. The U.S. government has, for many years, been working to improve competitiveness in its military procurement programs. Transatlantic cooperation is improving with each year. As a result, companies like Thales are well positioned for the future here in the States.

I often say that customers and prospects in the U.S. market have only begun to see the tip of the iceberg. There is still significant work to be done toward educating U.S. customers and prospects on the full portfolio of Thales capabilities. THALES IN THE U.S.

strategy > business

We have made and continue to make significant investments in technology advancement every year.”

nn Thales acquired Alcatel’s transport business in 2006;

nn In the coming years, what

what businesses came aboard here in the U.S. as a consequence, what do they do and who are the customers?

John Brohm CEO & President, Thales Transport & Security, Inc. [Pittsburgh, Pennsylvania]

he activity acquired here was Alcatel Transport Automation (U.S.), a unit of the global Alcatel Transport Solutions Division. ATA’s focus was placed on the development and delivery of advanced train control solutions for urban rail applications in the U.S. The solution set revolved entirely around rail-based signaling and train control, and the technology base was underpinned by a transmission-based, train-towayside technique pioneered by the earlier predecessor company SEL (Standard Elektrik Lorenz) in the late ‘60s and early ‘70s, then part of the ITT group. For an industry defined more by technological evolution than revolution, the creation of a communications-based train control technique coupled with the science of vital, or failsafeequivalent, processing platforms was a major innovation; it provided the means for rail operators to consider a complete paradigm shift in the way they might operate. Instead of being shackled by the constraints imposed by fixed-block lineside

signaling, they now had a powerful tool to dramatically improve capacity, and do so at a higher level of operating safety. This technology really shines in those applications where the owner is prepared to operate both automatically and driverless; in these cases, there’s the added opportunity for improved OPEX because operating and maintenance staff levels can be brought into line with a system that essentially runs itself. Our first few North American applications occurred before the U.S. unit was created. The most notable system is the Vancouver SkyTrain, which opened for service in January 1986 and still possesses the distinction of being the world’s largest and longest automated and driverless transit system. In addition to Vancouver, we’ve fitted systems in Toronto (Scarborough Rapid Transit) and Detroit (the Detroit Downtown People Mover), the Newark and JFK AirTrains (Port Authority), and the Jacksonville Skyway Express. We also supplied a small APM control system at the Tampa Airport, as

well as a speed supervision and enforcement system for the Disney World Monorail in Orlando. Most of these systems were delivered out of our Canadian unit under subcontract to UTDC (later absorbed by Bombardier). Since forming our U.S. unit in 1993, we’ve gone on to fit the San Francisco Muni and the Las Vegas Monorail, and we’ve recently completed two very important projects with the New York City Transit Authority – the Bergen Street Solid State Interlocking and the NYCT CBTC Interoperability program. These last two programs factor significantly in our future strategic plans. Another aspect of our strategy has been the development of teaming partners. Chief amongst these has been the development of our relationship with Mitsubishi Heavy Industries, a process that started 10 years ago and has led to the present project we have underway at the Dulles International Airport (completion scheduled for July 2009), and potentially one in

are the key customer programs that are being pursued?

Phoenix (the Sky Harbor Express), to be awarded in late 2009. The development of this relationship by our U.S. team has led directly to a strategic corporate affair, leveraging a substantial project in Dubai (both the Red and Green lines). This relationship may well be a factor in the case of the arising 20-mile Honolulu High Capacity Transit system (RFP expected Q3 2009), where in the next couple of months we will have to finalize our partnering choice there. Having just now distilled an application history with technological antecedents reaching back the better part of some 40 years, one could be left with the impression that our signaling technology is now outdated; however, nothing could be further from the truth. We have made and continue to make significant investments in technology advancement every year, in terms of platforms, processes, algorithms, and control techniques. Consequently, our CBTC package still remains the leading control technology in the industry.

ne of the significant strategic benefits stemming from our move into Thales has been the expansion of our transport solution portfolio. Where before under Alcatel our focus was essentially rail-based signaling, we now have with Thales the ability to offer a much broader and integrated transport solution set. Besides the signaling, we can offer passenger information capabilities, SCADA, agency communications and networks, fare collection and ticketing; and operational command, control, communications and security management centers. All of this delivered with Thales’s integration, support, and after-market services. Consequently, our prospective customer application horizon has expanded considerably, and this situation has provided a good challenge for our group. Our primary focus remains centered on the North East, where we are pursuing several key programs. On the rail signaling side, we’re focusing very hard on the competition to re-signal the PATH railway in New Jersey; presently we have a major proposal under evaluation by the owner, and the award is expected to be made in mid-2009. Also in 2009 we expect the award of the re-signaling program for the NYCT’s Flushing line, and we feel we are well placed to win this project. Our bidding activity will continue in this area, with other signaling projects now sitting on the horizon with the NYCT. On the transport side, we are awaiting award of the Orange County Electronic Toll project. Here we’re teamed with Cofiroute USA, and with this award we’ll be looking at additional ETC opportunities with Cofiroute elsewhere in the country. We have a major C3 bid into PATH to replace their aging control center system; we have the bid documents to replace the fare collection and ticketing system for SEPTA (Philadelphia); and we’re in the bid evaluation stage for a communications network system for WMATA (Washington, D.C.).

And then there is the Honolulu metro project mentioned earlier. This is a major opportunity to combine a number of the elements in our portfolio into one integrated offering, and our team is well underway in developing this approach with the end customer. Conspicuously absent from our present business plan is activity in the mainline rail sector. There are a number of reasons for this, largely historical and productbased; but with the increased Federal focus on mainline rail safety in this country, we are presently re-evaluating our position and exploring the considerations for re-approaching this area. It is a market sector for us that will, at best, be opportunistic in the short-term. Nevertheless, we have a broad program increasingly embracing the various elements in the Thales Transport portfolio, and we’re looking forward to the possibility of some significant growth for Thales in the transport domain.

THALES IN THE U.S.

strategy > people

Sprigg Takes the Helm of U.S. Naval Division

/// KEY FACTS 1969 Graduated from U.S. Naval Academy 1983-87 Served as a naval test pilot and commander of Strike Fighter Squadron 113 1988-90 Executive officer on the aircraft carrier U.S.S. Carl Vinson 1993 Served as the commanding officer on the aircraft carrier U.S.S. George Washington 1995 Served as the Assistant Chief of Staff for Plans and Policy at NATO Supreme Allied Command, Atlantic

fter joining Thales in early 2007, retired Rear Admiral Bob Sprigg became head of Thales Naval, Inc., a new business created in the U.S. earlier that year. With a career anchored in naval leadership, Sprigg is well suited to lead Thales as the company sets out to become a significant 21st century naval warfare supplier in the United States. Sprigg, whose father was an Army officer, spent many of his formative years on coastal bases. After graduating from the Naval Academy, most of his early career involved flying fighter and attack jets based on aircraft carriers around the world. In 1994, Sprigg became captain of the U.S.S. George Washington for its maiden deployment. In this position, he became keenly aware of the complexity and challenges of leading large multi-dimensional teams. With more than 5,000 crew members, modern aircraft carriers are floating cities offering a full range of crew and technical services. Later promoted to Rear Admiral, Sprigg led two carrier battle groups and headed the Navy’s Warfare Development Command. Following his career in the Navy, Sprigg has taken on several new challenges in the corporate domain. He worked for four years as director of Strategic Business Development and Advanced Warfare

2003-2007 Served as the Director of Strategic Business Development and Advanced Warfare Concepts, Bath Iron Works (General Dynamics) APRIL 2007 Appointed Vice President of Thales North America and Country Director for Naval Division activities in the United States SEPTEMBER 2008 Appointed President of Thales Naval, Inc.

“ These are exciting times at Thales, and I look forward to helping the company assert our presence in the U.S. naval market.”

— Bob Sprigg

Concepts at Bath Iron Works (a General Dynamics company). In his current role at Thales, he will help position the company to make significant gains in the U.S., especially as the Defense Department implements a naval strategy designed to counter 21st century threats. “The opportunity to meet and work with people from all over the world is what I appreciated most in my naval career, and that international flavor continues here at Thales,” said Sprigg. “These are exciting times at Thales, and I look forward to helping the company assert our presence in the U.S. naval market.”

THALES IN THE U.S.

innovation > technology

AUSA SHOWCASE

Versatile Lightweight Multi-role Missile AUSA presented a significant opportunity in the U.S. for Thales to demonstrate its precision engagement capabilities, including the new Lightweight Multi-role Missile (LMM) which made its debut at the 2008 Annual Meeting. LMM is a multi-function missile designed to engage static installations, wheeled or tracked vehicles, unmanned aerial vehicles, helicopters and fast in-shore attack and landing craft. LMM’s versatility also includes easy integration into a variety of platforms including ground vehicles, UAVs, helicopters and ships, all of which give the operator an easy-to-use system for precision strikes.

THALES CELEBRATES KEY INDUSTRIAL MILESTONE FOR

U.S. Army’s UH-72A Lakota Light Utility Helicopter Program Thales helped EADS North America achieve a significant milestone earlier this year on the U.S. Army’s UH-72A Lakota Light Utility Helicopter program. The first UH-72A final assembly line (FAL) aircraft was delivered from the production facility at Columbus, Mississippi in October of 2008. In alignment with Thales and EADS North America’s commitment to establish full production of the UH-72A in the U.S., this development signifies a major success for the U.S. Army’s UH-72A Lakota Light Utility Helicopter program.

s a first tier partner to EADS North America, Thales supplies its marketleading MEGHAS® avionics suite, uniquely adapted to the requirements of today’s helicopter missions. By reducing crew workload, MEGHAS allows helicopter crews to accomplish full range missions including EMS (Emergency Medical Services), SAR (Search & Rescue), surveillance and offshore transport quickly and efficiently.

aunched at the beginning of 2007, Thales’s LMM Program has made significant progress with the most recent flight test proving 100% successful. All missile hardware, software and guidance control functions operated as expected and the telemetry information received during the flight will assist with ongoing program

development. The next phase of the program will focus on the re-design of several key elements. To date, the program has been funded through private venture capital, and there has been significant interest shown from potential customers. LMM is expected to enter full production in 2011.

Thales HF Radio Communications System Selected by U.S. Coast Guard – Now the Gold Standard for Coast Guard Cutters Thales Communications, Inc. announces the selection of its medium-powered, High-Frequency Automated Link Establishment (HF-ALE) radio communications system by the U.S. Coast Guard for incorporation into new cutter acquisition contracts for the next five to seven years.

he Coast Guard’s standardization with Thales is a follow-up to Thales’s participation in an indefinite delivery, indefinite quantity (IDIQ) contract competitively awarded in 2005 under which Thales HF radio systems are being used to upgrade the Coast Guard’s in-service cutters with advanced HF-ALE capabilities. Under the IDIQ contract, Thales’s systems are being integrated on the Coast Guard’s fleet of 75 cutters of varying classes, including high- and medium-endurance cutters (378-foot, 282-foot, 270-foot, and 210-foot) and the Polar Icebreaker fleet.

In-Service Cutter: 378-foot WHEC

With the Coast Guard’s selection of Thales’s HF-ALE radio system, the fleet will receive immediate savings in procurement costs, life-cycle maintenance, HF-ALE network management and training.

For more information, or to view the full press release, please visit http://www. thalesgroup.com/usa/.

THALES IN THE U.S.

innovation > technology

PROFILE

In-Flight Entertainment Passengers boarding the TWA flight from New York to Los Angeles on July 19, 1961 were accustomed to limited entertainment choices. At home they had a choice of three network television stations, listening to the radio, a good book and one film at a time at the local movie theater.

o when the flight took off and the crew played the first-ever feature length film shown on a commercial airline, By Love Possessed, starring Lana Turner, they must have been thrilled. Here they were, flying thousands of feet over the towns and farms of America, while watching a movie, of all things. What would they think of next?

Brad Foreman Managing Director, Thales Aerospace in the U.S.

Quite a bit, in fact. More than 40 years later, most airlines wouldn’t dream of offering passengers anything less than a personal, interactive multi-media entertainment experience. Today’s business and leisure travelers have come to expect a seemingly limitless variety of entertainment choices to help pass the time in the sky. Delivering against that expectation is the job of the Thales In-Flight Systems team located in Irvine, California. “In just a few fast years, Thales has become a preferred supplier of in-flight entertainment solutions to many of the world’s leading and most progressive airlines,” says Brad Foreman, Managing Director of Thales’ aerospace business in the U.S. “Thales has a long heritage in aerospace and system integration, and is recognized for its ingenuity and ability to introduce new capabilities to the in-flight entertainment market.” Among the new technologies recently introduced by Thales is the 23-inch in-seat display, offering an unprecedented viewing experience for passengers on long-haul commercial flights. In 2007, Thales and its industry partners enabled the first use of SMS messaging during an international flight, and also last year enabled the first in-flight GSM call.

/// Some of the most visible aspects of in-flight innovation from Thales, which offer four distinct capability sets for commercial airline fleets:

•

Audio/Video: High-resolution and large displays, and hundreds of on-demand movie options and local TV viewing choices. By integrating the use of satellite technology, for example, airline passengers in India are now viewing 16 channels of domestic TV.

•

New Media and Applications: High-end single and multi-player games, on-board chat rooms, in-flight meeting capabilities and the interactive ASXi Moving Map – a user-controlled 3D image of the passenger’s aircraft in flight, featuring landmarks and multiple perspective views.

•

New Connectivity Options: In-flight Internet access and wireless content updates are new connectivity capabilities. Other options include popular live news web portals, headline news videos and the latest connecting gate information. Passengers may also access information about their current trip, airline destination ground services and new applications.

•

Personal Device Integration: Thales is developing capabilities that will allow connectivity with passenger iPods, and USB ports to allow use of in-seat displays with other personal entertainment devices.

Passenger demands for these capabilities will undoubtedly continue to rise. According to industry market research company IMDC, Inc., leisure, business and “frequent” business travelers spend 140-170 minutes per flight watching in-flight entertainment. Only sleep consumes more time in the air (working was a distant fourth, behind reading). If the company’s record is any indication, Thales is wellpositioned to meet passenger expectations. Thales’s experience with in-flight technology is filled with firsts. Thales was the first to install an IFE system on the A380, the first to install audio and video on-demand on a regional jet, the first to install 23-inch displays and the first with

a system ready for installation on board Boeing’s 787. “Thales IFE is leading the industry in terms of innovation and the ability to meet passenger demands for rich entertainment experiences,” says IFE Vice President and General Manager Alan Pellegrini. “The airlines are increasingly considering passenger connectivity during various phases of flight and on the ground. The introduction of higher bandwidth satellite communication technologies, coupled with the rise of low-cost, connectivity-enabled portable electronics, has meant that these applications are fast becoming reality.”

Alan Pellegrini Vice President & General Manager, IFE

It’s a far cry from 1961.

THALES IN THE U.S.

innovation > technology

NEW TECHNOLOGIES

Liberty Radio Brings Interoperability to U.S. First Responders With the tragic events of September 11, 2001 and the devastation caused by Hurricane Katrina, Americans quickly learned that a lack of communication and situational awareness paralyzes command and control. In times of disaster, interoperability is not an option, yet it has remained a stark reality given the scenario where multiple emergency officials are using equipment that involves the use of different frequency bands on different waveforms.

nn We have leveraged our proven expertise in software-defined radio technology for the military into a no-compromise solution that addresses the interoperability challenges of the public safety community.”

ntil recently, emergency response agencies had to rely on the use of several single-band portable or mobile radios to maintain interoperability with partner agencies. While some agencies swapped or shared radios, others, according to the Department of Homeland Security, employed “time-consuming methods to exchange information, including relaying messages through dispatchers or using runners to hand-carry messages.” Until now. In spring of 2008, Thales introduced LibertyTM, the first multi-band, software-defined Land Mobile Radio (LMR) for government agencies and first responders. For the first time, Federal, State, Local, and U.S. Department of Defense agencies will be able to communicate using a single portable radio that operates in direct mode or on the existing infrastructures of the public safety bands: 136-174 MHz, 380-520 MHz, 700 MHz and 800 MHz. Liberty’s size, weight and performance is equivalent to existing single-band portable

a no-compromise solution that addresses the interoperability challenges of the public safety community.”

Thales Liberty Website – www.thalesliberty.com

LMRs and eliminates the requirement to carry multiple radios to cover fragmented frequency bands. Unlike multi-band military radios, Liberty is designed to meet stringent public safety specifications. It is a single, easy-to-use radio that provides all modes standardized for public safety use including Project 25 (P25) conventional, P25 trunked, and legacy analog. Liberty offers Data Encryption Standard (DES) and Advanced Encryption Standard (AES) encryption with Over-the-Air Rekeying (OTAR), and its Mil-Spec metal housing is

submersible to two meters. Like all Thales Communications radios, the Liberty radio is software-based, enabling the integration of future capabilities via simple download of software upgrades. “The ability for all government agencies and first responders to be able to communicate with each other any time over all public safety bands is crucial to the safety and security of our nation,” said Mitch Herbets, President and CEO of Thales Communications. “We have leveraged our proven expertise in software-defined radio technology for the military into

In 2008, the U.S. Department of Homeland Security (DHS) awarded Thales Communications a one-year contract to pilot test the Liberty radio with various first responders across multiple levels of government. Pilot testing starts in the first quarter of 2009. Production of the Liberty radio is scheduled for mid-2009, and GSA pricing is available now. According to DHS, Thales’s multi-band radio has already demonstrated capabilities that “equip responders with the unprecedented capability of operating across the entire range of public safety radio bands.” In a post-9/11 world, it’s a capability that America’s first responders can’t do without.

Firefighter using Liberty LOGIN TO THALES

Thales acquires leading encryption supplier In October of 2008 Thales acquired nCipher, a leading supplier of encryption products that protect sensitive data. nCipher delivers solutions in the fields of key management and cryptographic hardware to customers including government entities, financial institutions and enterprises.

he acquisition provides Thales with an instant skill-set in markets that Thales has not yet tapped into, while providing the technology platforms needed to meet future growth. nCipher will complement Thales’s encryption products portfolio by adding a hardware security module product range, a provisioning product for key management, and a product to secure data stored on tape from loss, theft, or compromise. The complementary expertise of the two combined companies will broaden Thales’s security appliances product portfolio in addition to further developing Thales’s information and communications systems security business. The acquisition of nCipher will enhance the combined group’s reputation as one of the most technologically advanced players in the e-security industry. The combined group will leverage both Thales’s and nCipher’s encryption and key management expertise and support services capability in the market for high assurance cryptographic security. nCipher will add to Thales’s products and services range, allowing the combined group to offer a more comprehensive suite of security solutions to customers. “The acquisition of nCipher is in line with Thales’s committed strategy of expanding its presence in the sector of information and communication systems security,” said Cindy Provin, President, Thales e-Security, Inc. “In addition, nCipher’s global footprint of regional offices will not only contribute to and complement Thales’s international network but also benefit from a much wider distribution base, enabling the combined group to better service the demands of its increasingly multinational customers.” For more information, or to view the full press release, please visit http://www.thalesgroup.com/usa.

THALES IN THE U.S.

country > highlights

Thales U.S. Snapshots Business Name:

Business Name:

Thales Alenia Space

Thales In-Flight Entertainment

Location: San Francisco, California

Location: Irvine, California

Employees:10

Employees: 710

Business: Thales Alenia Space (TAS) is a joint venture company owned by Thales and Finmeccanica. With headquarters in France and Italy, the U.S. business supports a wide range of programs for NASA and industry partners.

Business: The worldwide headquarters of Thales’s In-Flight Entertainment (IFE) business is located in Irvine, California. A leader in state-of-the-art systems for airlines, Thales was also selected to provide the IFE system for Air Force One, the plane transporting the President of the United States.

With teams based in Italy and France, Thales Alenia Space was the prime contractor for the Harmony node, a massive 31,000 pound new addition to the International Space Station. In October 2007, NASA’s space shuttle Discovery delivered Harmony to the Space Station, increasing the available living and working quarters for workers on board.

Nearly 75% of airlines ordering the new Boeing 787 Dreamliner have selected Thales IFE systems for their fleet. Thales teams in California and Washington state are hard at work supporting both airlines directly, as well as manufacturers such as Airbus and Boeing.

Business Name:

Thales Avionics

1 4 72

7 ThalesRaytheonSystems Fullerton, California

8 ACSS – Joint Venture with L-3 Phoenix, Arizona 4

9 Thales Communications Clarksburg, Maryland

Thales e-Security

Business Name:

Thales Naval, Inc.

Business Name:

Thales North America

Locations: Seattle, Washington; Edison, New Jersey

Locations: Weston, Florida; Stoneham, Massachusetts; Milpitas, California

Location: Baltimore, MD

Location: Alexandria, Virginia

Employees: 362

Employees: 116

Employees: 14

Employees: 50

Business: With maintenance and support facilities on both U.S. coasts, Thales provides its customers with OEM quality and expertise, direct access to Thales engineering and product support and technical assistance thanks to a worldwide network of highly experienced field support personnel. Thales is a pioneer in innovating service solutions and offers a broad range of maintenance solutions for avionics equipment.

Business: A business within the Thales D3S division, e-Security in the U.S. has grown with the 2008 acquisition of nCipher, a UK-based company with two locations in the U.S. e-Security provides data encryption technologies for commercial customers such as banks and government entities such as the U.S. Army.

Business: A new Thales U.S. business launched in 2008, Thales has ambitious plans to build on current successes with the U.S. Navy and Coast Guard.

Business: The country corporate office for Thales in the U.S., responsible for defining the overall business strategy for Thales in the U.S. through close collaboration with divisions and businesses. Also supports integration of business development across divisions, branding and a range of shared services/support including payroll and benefits.

When airlines bring their planes in for service, Thales provides maintenance to keep the vital avionics systems in good working order.

The next time you transfer money from one account to another, there’s a good chance your transaction is being protected by Thales technology.

3 4 11 < U.S. Locations 3 1013 9 13 65 Additional Locations

Business Name:

10 Thales Transport & Security Pittsburgh, Pennsylvania 11 Thales Components Totowa, New Jersey 12 Thales Air Traffic Management Shawnee, Kansas 13 DRS Sonar Systems Gaithersburg, MD; Johnstown, PA

Often referred to as the heart of any combat ship, the combat management system provides the information needed to detect and counter threats to both the ship and surrounding forces. Thales’s naval business in the U.S., working closely with Thales colleagues in the Netherlands, is providing the combat management system for the U.S. Navy’s brand new Littoral Combat Ship, “LCS-2.”

Thales in Virginia, along with a number of other sites, partnered with Lee Jeans to raise money and awareness for breast cancer. Employees donated $5.00 each and wore pink shirts and jeans in support of this year’s campaign, which has raised more than $70 million since 1996 for groundbreaking research for women’s cancer programs.

Future issues of the Thales U.S. Login magazine will include images related to the activities, people and success stories from each of the Thales businesses here in the United States. Employees across the U.S. are encouraged to share images with either your local communications team or by sending photos directly to Login editorial staff at LoginUS@us.thalesgroup.com. THALES IN THE U.S.

government > 2009 outlook

Government Affairs Update:

government > 2009 outlook

Outlook 09 New Administration Faces Fiscal Challenges While Maintaining Strong Defense

hile the U.S. election season was dominated by the political theme of change, the President-elect’s new Administration is already signaling – through cabinet nominations and staff appointments – a commitment to a smooth transition of America’s defense leadership. And regardless of one’s political leanings, a smooth transition is critical for a country at war. With familiar faces from past Administrations accepting new White House posts, and respected members of the national security community being floated for top appointments in the Department of Defense, military technology providers like Thales have reasons to feel optimistic in 2009. Traditionally, the Pentagon is one of the least political agencies in the U.S. government, and both Democrats and Republicans in Congress respect the sacrifices made by our men and women in uniform – and all want our war fighters to have the best tools available to accomplish their missions.

Different political worldviews will also have no impact on reversing global trends that are changing the way the Pentagon acquires new platforms and technologies. A July 2008 Defense Science Board Task Force report stated that “while there must be recognition of the need for U.S. control of mission capability and for military superiority, foreign dependency need not mean vulnerability.” The report also repeated a Board recommendation from 1999, that agencies with national security responsibility must “encourage transnational defense industrial collaboration and integration, as well as transnational weapons systems.”

“Defense is still largely a labor intensive, old-line manufacturing business,” said the report, “and no president wants to do anything that would cut American jobs, especially in a time of economic distress.” Today’s U.S. economic distress, however, could pose policymakers with unprecedented fiscal challenges. The cost of recent bailouts has been enormous, adding trillions to the national debt, and there will be growing pressure to expand domestic programs.

But don’t Democrats spend less on defense than Republicans? And won’t Thales be hurt in the U.S. by the widening economic downturn? Not necessarily.

Despite these mounting budget pressures, the new White House would still be hard-pressed to make the case for drastic cuts in defense. The U.S. faces an increasing number of threats in a complex global security environment. As a result, a wholesale abandonment of key programs is unlikely.

According to a recent Reuters report, defense contractors thrive as well during Democratic administrations, if not better, than in Republican ones.

The new Administration could cut supplemental budgets if it draws down troop levels overseas, which could free up funding for long-term contracts

for building missiles, fighters and ships – reflecting an emphasis on conventional forces that started during the Presidential campaign. Many reports following the election suggest that President-elect Obama will scrutinize the DoD’s major programs. Several programs including the Navy’s DDG 1000, the Joint Strike Fighter, nuclear weapons programs, and portions of the Army’s Future Combat Systems are exposed to varying levels of risk. But many programs, such as the KC-X tanker, riverine craft, small surface combatants and patrol craft, the littoral combat ship, and amphibious assault capabilities may see continued support. On international trade and other issues involving investment in the United States, there are high hopes that the U.S. Senate will ratify the U.S.-U.K. Defense Treaty in early 2009. The flagging U.S. economy – hungry for job creation and stimulus – should translate to political support for any investment in U.S. manufacturing and American workers, but Congress in 2009 may not overtly support measures to increase “on-shoring” by overseas companies. That is why we must continue to tell lawmakers and public officials of every political stripe at the local, state and federal levels about the jobs that are created and sustained by Thales across the U.S. In 2009, as they are faced with tough choices about the economy, defense and program budgets, it will be one of the most important messages they hear.

THALES IN THE U.S.

focus > partnership profiles

SEVEN YEARS LATER,

ThalesRaytheonSystems Continues to Deliver 21st Century Defense Strategy

Seven years after its inception, ThalesRaytheonSystems (TRS), the first-ever formal transatlantic joint venture in the defense sector, has become a major player in the defense industry in the U.S. and abroad. With 1,600 employees and customers in 117 countries, TRS is a global leader in military radar, C2/C4I operations centers and “system of systems” capabilities that have been called upon to build some of the world’s major air defense programs in countries such as Saudi Arabia, Switzerland, France and the United States.

“N

o single nation has all of the defense resources and capabilities it requires,” said Kim Kerry, CEO of TRS U.S. Operations. “Through coalitions, alliances and partnerships, transnational systems are more important than ever. U.S. and global customers require systems that can operate and harmonize with the systems of their friends and allies around the world.”

— TRS Firefinder

Since 2001, TRS has been awarded multiple contracts by the U.S. Marine Corps and the U.S. Army for its Firefinder weapon locating and Sentinel air defense battlefield radar systems. In October of this year, the U.S. Army awarded another contract to TRS for 60 Firefinder upgrade kits. But the importance of the ThalesRaytheon joint venture goes beyond technologies and platforms – it puts Thales at the forefront of transatlantic security cooperation, which has become vital among nations cooperating to defend against 21st century, asymmetric threats in the wake of 9/11. “By equipping themselves with systems that communicate with each other, armed forces are responding to the need for interoperability that is crucial in a post-9/11 era,” said Kerry. “Our U.S. customers know that we not only have the technical expertise and innovation capacity to meet their requirements, but also possess the basic building blocks that allow us to provide solutions that are effective and affordable for the U.S. war fighter.” The Pentagon’s most recent Quadrennial Defense Review stated that “the U.S. and its allies and partners must cooperate closely and further develop capabilities to detect, identify, locate, tag and track key WMD assets and development infrastructure in hostile or denied areas, and to interdict WMD, their delivery systems, and related materials in transit.”

Our TRS team is not only delivering innovative offerings, but serving as a model for transatlantic cooperation that will ensure a strong defense of the U.S. and its allies as they adapt to new and emerging threats.”

– Kim Kerry

To that end, TRS is a major supplier to NATO, particularly for the large-scale Air Command and Control Systems (ACCS) program. ACCS is NATO’s largest ever software system and will provide NATO with a modern, flexible system that will unify the NATO

ThalesRaytheonSystems Website – www.thalesraytheon.com

nations for offensive or defensive air campaigns. The system covers nearly 80 million square miles, fuses inputs from 300 sensors, unifies roles for 58 operators, and links communications protocols throughout NATO. It is also a critical component of NATO’s planned missile defense system. TRS’ surveillance radar, the Sentinel, the same system that safeguarded the 2002 Salt Lake City Winter Olympic Games, is now a requirement of more than 200 air defense systems worldwide. The Sentinel detects and tracks airborne threats at several times the range of short-range systems, providing early warning to ground crews and supporting maximum-range engagement of threats. Switzerland’s FLORAKO airspace surveillance system utilizes command and control capabilities that are the product of TRS engineers in Massy, France and Fullerton, California. The Swiss system utilizes TRS expertise to integrate a mix of existing products and systems that help avoid the cost of replacing entire installations.

Kim Kerry CEO of TRS U.S. Operations

“The international cooperation on the ThalesRaytheon team is seamless, and our customers see the results in systems that can handle a variety of technical and logistical challenges,” said Kerry. “Our TRS team is not only delivering innovative offerings, but serving as a model for transatlantic cooperation that will ensure a strong defense of the U.S. and its allies as they adapt to new and emerging threats.”

THALES IN THE U.S.

news > customer programs

THALES TECHNOLOGY

Improving Safety in Crowded U.S. Skies When the Federal Aviation Administrationâ&#x20AC;&#x2122;s Surveillance and Broadcast Services program office was formed in 2005, it was charged with the mission to change the nationâ&#x20AC;&#x2122;s air traffic control system from one that relies on radar technology to a system that uses precise location data from the GPS satellite network. Today, in partnership with ITT, Thales is delivering the essential elements for modernizing the U.S. air traffic control infrastructure.

THALES IN THE U.S.

news > customer programs

Technology

Precision

Accuracy

Safety Without a new system, the FAA estimated that by 2022 gridlock in the skies would cost the U.S. economy $22 billion annually in lost economic activity – a number that would surpass $40 billion by 2033. The FAA needed nothing short of a revolution in air traffic control management. Three years later that revolution is underway with the delivery of a proven technology called Automatic Dependent SurveillanceBroadcast (ADS-B). ADS-B is a crucial component of the nation’s Next Generation Air Transportation System (NextGen), and Thales’s Air Traffic Management business, with its primary U.S. location in Shawnee, Kansas, is at the forefront of making this new system a reality. The result will be increased safety for U.S. airline passengers and greater efficiency in the nation’s air traffic control system. ADS-B uses GPS satellite signals to provide air traffic controllers and pilots with accurate and dynamic information to keep aircraft safely separated in the sky and on runways. Aircraft avionics equipment

Thales’s ADS-B solutions offer air traffic controllers a system that enables preferred flight paths, trajectory-based operations and increased flexibility to adjust to dynamic traffic demands.”

Wayne Dohlman, President & CEO of Thales ATM, Inc.

receives GPS signals and uses them to determine the aircraft’s precise position in the sky. This position information is combined with other flight data and then broadcast to other nearby aircraft and air traffic control facilities. When properly equipped with ADS-B, both pilots and controllers will, for the first time, see the same real-time displays of air traffic. As a partner to ITT on the ADS-B program for more than a year, Thales has been critical to the program’s success, developing and supplying the

Efficiency ADS-B radios and air surveillance tracking software. Ultimately, Thales will deliver more than 1,500 ADS-B radios for deployment across the U.S. “Thales’s ADS-B solutions offer air traffic controllers a system that enables preferred flight paths, trajectory-based operations and increased flexibility to adjust to dynamic traffic demands,” said Wayne Dohlman, President & CEO of Thales ATM, Inc. “The system may ultimately allow air traffic controllers and pilots to share responsibility for maintaining proper aircraft separation and more safely managing traffic at high-density airports,” Dohlman added. “The opportunity to provide the FAA with essential elements for modernizing the U.S. air traffic control infrastructure provides Thales with a critical inroad to the expansive U.S. air traffic control market,” said Todd Donovan, Director of Business Development for Air Traffic Management in the U.S. “Thales’s global experience in ATM will be vital to our U.S. success, a market accounting for nearly

50% of worldwide spending on air traffic control technologies.” Thales’s impressive accomplishments on the FAA’s ADS-B program are the product of an international design team from Australia, France, Germany and Italy, all coordinated by Thales ATM in Shawnee, Kansas. “While we are proud of the technology we are deploying as part of the U.S. ADS-B network, the management and coordination of design activities at six Thales sites allowed us to meet the aggressive FAA development and deployment schedule. This multi-domestic effort is an equally significant achievement and the key to future success with the FAA,” said Dohlman. “A critical aspect of NextGen is ensuring interoperability with other global efforts, particularly SESAR, the European equivalent of NextGen,” said Donovan. “Thales has been a supplier of navigation systems to the FAA for more than 50 years, and continued growth in the air traffic control business requires significant success in the U.S. market.”

Thales’s global experience in ATM will be vital to our U.S. success, a market accounting for nearly 50% of worldwide spending on air traffic control technologies.”

Todd Donovan, Director of Business Development for Air Traffic Management in the U.S. Last year, Thales extended its ADS-B market leadership by introducing a Universal Access Transceiver (UAT) radio to augment its 1090 Mode S ADS-B product line, which currently supports the most common ADS-B standards and enables broadcast services for all en route, terminal and surface applications. Thales ADS-B solutions are now deployed and operational in 12 countries. In 2008, the first installations of the NextGen ADS-B system achieved In-Service Decision (ISD) from the FAA in southern Florida, where the system will

provide surveillance and broadcast services from a network of 11 Thales ADS-B ground stations connected to an ADS-B data center, with augmentation from existing FAA radar systems. Over the past year, the ITT/Thales team also incorporated the Thales MultiSensor Tracker into ITT data center software to fuse radar and ADS-B information.

“Our recent success sets the stage for growth opportunities and broader ambitions,” said Donovan. “We are currently pursuing a portfolio of efforts intended to change Thales from a small player to a leader in the U.S. market, including teaming for additional NextGen programs, bidding as prime contractor for select projects and exploring mergers and acquisitions.”

The next phase of the program calls for installation of 340 radio sites over the next two years, with a follow-on installation phase leading to full deployment of the system in 2013.

THALES IN THE U.S.

news > events

JANE’S U.S. DEFENSE CONFERENCE

THALES TAKES ON

AUSA 2008

The AUSA Annual Meeting, the world’s largest land power forum, annually brings together America’s Army, industry and international partners for three days of professional development, dialogue and exhibitions. Held at the Walter E. Washington Convention Center in Washington, D.C. from October 6-8, this three day event consisted of industry and military exhibitions, social events and awards ceremonies, all in support of the U.S. Army.

hales took full advantage of AUSA this year by demonstrating a wide range of capabilities including military aviation, integrated ISR, force protection, precision engagement and network enabled communications. Thales showcased several “soldier-focused”

products including Elix-IR, a threat-warning system for helicopters designed to detect ground fire; and the Lightweight Multi-Role Missile (LMM), a laser-guided missile optimized to take on a wide range of targets on the ground, in the air and at sea. In conjunction with the exhibition, Thales once again hosted its annual AUSA reception and dinner on

Monday, October 6 at the Willard InterContinental Hotel. Key industry leaders, active and retired military officers, members of the U.S. Marine Corps, the Australian, French and British Embassies and and top tier media attended for a night of networking and customer relations.

Thales salutes America’s Army and is honored to support the troops at this year’s Annual Meeting and Exposition for AUSA.

Allan Cameron addresses key industry and government representatives In spring of 2008, Allan Cameron, Chairman and CEO of Thales North America, addressed an audience of key industry and government representatives on the benefits of European companies doing business in the U.S. defense market.

aking part in a panel discussion for the second annual Jane’s U.S. Defense Conference, Cameron provided an overview of European companies’ contributions to the U.S. Defense market. With a focus on “the needs of the war fighter,” Cameron stressed the capabilities of European companies like Thales to propose cost effective, quality and timely solutions to the Department of Defense (DoD) – solutions that are often closely aligned with DoD priorities and requirements. Cameron stated, “Innovation. Quality. Cost effectiveness. And competition. These are the pillars of the case for an increase in the degree to which European companies should be embraced by the U.S. in supporting our country’s defense and national security.” Cameron offered examples such as Thales’s Liberty Radio to exemplify an effort that leveraged our innovation and proven expertise in softwaredefined radio technology for the military into a no-compromise solution that addresses the interoperability challenges of the public safety community.

Cameron also addressed the recent questions on large contract wins supported by European companies taking jobs away from the U.S. He spoke of Thales’s perspective for business in the U.S. which is, “to become more and more a part of the local communities in which we operate. More jobs, more taxes, more participation in socially responsible activities such as volunteerism, supporting the troops and their families, etc.” Cameron went on to state that while Thales does not currently have the level of employment other large European based firms do here in the U.S., the company is very proud of the growth it has achieved in the past several years: “It is vital that Thales and other European-based defense

and security companies doing business in the U.S. continually point to our role in the broader metrics of in-sourced jobs that subsidiaries of overseas companies provide to the U.S. economy.” The panel was chaired by The Honorable Jacques S. Gansler, Director, Center for Public Policy and Private Enterprise, University of Maryland, and former UnderSecretary for Defense Acquisition. Fellow panel members included: The Honorable Delores M. Etter, Professor, United States Naval Academy and former Assistant Secretary of the Navy; Dr. Loren Thompson, Chief Operating Officer, Lexington Institute; and Mr. Byron Callan, Analyst, Aerospace and Defense Security Fund, Perella Weinberg Partners.

THALES SUPPORTS

U.S. Navy Memorial Golf Tournament In June, Thales sponsored the 18th Annual United States Navy Memorial Golf Tournament at The Golf Club at Lansdowne in Lansdowne, Virginia. The tournament was well attended by more than 200 active duty and retired Navy officers, government officials and industry executives from leading naval suppliers.

he United States Navy Memorial was created to honor the men and women of the United States Navy and the rest of the Sea Services – past, present and future. Thales worked in coordination with the tournament organizers to create a new sponsorship to honor the “Deployed Sailor,” which is meant to recognize men and women deployed throughout the world defending our country and our freedoms. At the conclusion of the event, Thales North America’s Chairman and CEO, Allan Cameron, was presented wtih the U.S. Navy Memorial’s Lone Sailor award to recognize Thales’s commitment to the tournament.

THALES IN THE U.S.

news > community

thales inside

A COMMITMENT

To the Greater Good

At Thales in the U.S., each business represents a unique specialty, but at the core of our diversified businesses is a unifying commitment to public service. From California to Maryland, each business has helped make Thales’s commitment to serving the greater good an unparalleled success.

Thales Lends a Hand to Families in Need at the Annual Caps Care Classic In October, Thales partnered with the Washington Capitals to raise money and awareness for the Children’s National Medical Center. Every year, the Washington National Medical Center touches the lives of thousands of children and families from across the nation. A unique facility, unsurpassed in its commitment to specialized pediatric care, the Center provides hope to many whose lives depend on the generosity of others.

hales in the IT’S ALL ABOUT U.S. was THE KIDS pleased to once again join with the Washington Capitals to sponsor the fifth annual Caps Care Classic Charity Golf Tournament. This year, the tournament raised more than $170,000. The proceeds from the event will help provide access to critical healthcare for families at Children’s Hospital.

Thales North America is honor ed to join the Washington Capitals Charit ies support of the Children’s Nation in al Medical Cente r. The thousands

of dedicated employe

es our partner compan ies in the U.S. share a special bond with the communities in which we live. In Virginia and Maryland, the people of Thales dedicate themselv es to a wide range of efforts that improve the quality of life for those less fortunate.

of Thales and

The Washing ton National Medical Center touches the lives of thousands of kids and families, our neighbors and loved ones. A unique facility, unsurpa ssed in its commitment to specialized pediatric care, the Center provides hope to so many whose lives depend on the generos ity of others.

Thales is pleased to join the Washing ton Capitals organiza tion again in 2008 with a promise to the Washington Nationa l Medical Center – the kids can count on us.

www.thalesgroup

.com/usa

Thales Holiday Support Helps Wounded Warriors

Thales Sponsors 5th Annual USO Casino Night

Each holiday season, Thales North America offers its assistance to an organization that supports our men and women in uniform. This year, Thales chose to sponsor the Fairfax-Lee Chapter of the Association of the United States Army (AUSA).

In 2008, Thales in the U.S. was once again the proud sponsor of the United States Organization’s (USO) annual Stars & Stripes, Diamonds & Clubs Casino Night. Donations from the fundraiser benefited the USO of Metropolitan Washington. USO-Metro is focused on raising money to support our nation’s men and women in uniform and their families. Their efforts go a long way toward improving the quality of life for the military community in the Washington, D.C. area.

ith the support of Thales, the Chapter held its Annual Holiday Party in December for wounded warriors and their families assigned to the Warrior Transition Unit (WTU) at DeWitt Army Hospital at Fort Belvoir, Virginia. The event featured food, entertainment and, of course, Santa bearing gifts for the kids. DeWitt’s Warrior Transition Unit provides service members with quality medical care and support services through the course of their medical treatment. The unit provides primary care and case management, and helps create conditions that “promote the timely return [of service members] to the force or to continued service to the nation as a Veteran in their community.” Thanks in part to the contributions of Thales employees from across the country, the event raised nearly ten thousand dollars for the men and women whose sacrifices allow the rest of son…. This Holiday Sea us to spend the holidays with our families and enjoy our freedom e for their sacrific year-round. …thank the kids ts our men zation that suppor 2008, s. In a selects an organi North Americ t during the Holiday Each year Thales focus for suppor uniform as our of AUSA. and women in -Lee Chapter ting the Fairfax for the Thales is suppor l Holiday Party at Annua an hold year r Transition Unit once again this to the Warrio The Chapter will and their families assigned features food, rs ber 12, 2008 wounded warrio event on Decem kids. Hospital. The g gifts for the DeWitt Army , Santa bearin and, of course y to entertainment utions go directl contrib all of 100% for this effort. your support Thales seeks their families. warriors and these wounded Attention: Ron -Lee Chapter,” e to “AUSA Fairfax . Indicate “WTU Holiday Party” checks payabl dria, VA, 22310 Please make all Alexan Way, Jane Adolphi, 5819 of your check. in the memo field n with

he event, which was held at the Sheraton National Hotel in Arlington, Virginia, featured casino games, silent and live auctions, food and entertainment, including a live performance by “Elvis.” This year’s event was a huge success and built on the fundraising efforts of the last four years. To learn more about USO-Metro, visit www.USOMetro.org.

Thales U.S. Community Champion

People OnLine: Just a Click Away nn

An important new resource is now available for Thales employees in the U.S. – the People OnLine portal, which provides news and information direct to your desktop from Group, division, U.S. Company and local sources.

T Thales is a company known worldwide not only for the work we do for our customers, but also for the contributions our people make in thousands of local communities. Thales people making a difference in the cities and towns where we live – working on behalf of less fortunate people, protecting the environment and other acts of good will – are at the heart of our corporate culture. Beginning in January 2009, the editorial staff of Thales Login U.S., along with senior management from each of the businesses in the States, will select two people each quarter as “Thales U.S. Community Champions.” We need your help bringing the efforts of your colleagues to our attention. A one-page nomination form is available by emailing LoginUS@us.thalesgroup.com and asking for the “Thales Community Champion nomination form.” Champions will be featured in future issues of Login U.S. A Thales employee mission trip to New Orleans.

his comprehensive on-line tool, launched to U.S. employees in January of 2008, will help Thales move closer to achieving one of the most important goals the company has in the U.S. – helping our people see how their day-to-day role fits into the incredible scope of the Group’s global business. The portal is a secure site which automatically opens when you launch your web browsers and is accessible to all employees. By entering your Thales Group Identifier “TGI” number, the information you see is personalized to your division, the country (U.S.) and your job family. ”People OnLine is an important resource for Thales employees,” said Rodney Willis, Vice President of Human Resources for Thales North America. “Not only does the site provide a wide range of tools and resources specific to a given Thales employee’s career, but it is also a vehicle by which we can inform employees of happenings outside of their own business area, and bridge the gap between countries, divisions and businesses.” Thales North America also launched the ePeople1st performance management tools on the heels of People OnLine. In February of 2008, employees were introduced to a variety of tools that allow them to facilitate the annual activity discussion process electronically. While the review process remains the same – employees are expected to meet with their managers to discuss objectives, review performance and discuss development goals – the process is facilitated by the on-line tool for a more streamlined, simplified process of documentation. For more information about using the People OnLine tools, please visit the portal or contact your human resources representative.

Please note, People OnLine is made available to all employees in the United States, however, it is not accessible for companies who operate under a proxy agreement. If you have any questions or would like further information please contact you human resources representative.

THALES IN THE U.S.

thales inside

— Greek Philosopher Thales of Miletus

/// THALES’S CONVERSATION FRAMEWORK

What’s In A Name?

Bottom Ad Image: Facing a similar brand awareness challenge in Australia, Thales launched a highly successful advertising campaign focused on improving basic understanding of the company name.

A Branding Story Many of us think of the Thales brand as something that is reflected primarily in advertisements and on trade show floors. But building Thales’s profile is something that happens in venues large and small, and often in increments – in meetings, community events and in client interactions every day. Joe: Brand Ambassador ake, for instance, the story of one proud Thales employee – we’ll call him Joe – who manages to convince his boss that a few hundred dollars committed to sponsor the local Rotary Club lunch is a good idea.

It is a good idea. The mayor along with more than a hundred important local community and business leaders plan to attend. In addition, staff members from the area’s Congressional delegation will be there, as will a community liaison from a nearby Navy facility. The big day arrives. A banner featuring the Thales logo is perfectly positioned behind the podium. As a sponsor, Joe will be given the microphone to introduce the mayor. After lunch and Club announcements, Joe gives a quick introduction of the mayor. Despite a previous reminder to the mayor that “Thales rhymes with Dallas,” Joe listens as the mayor stands up and thanks “today’s lunch sponsor, Thales” – mispronouncing the company’s name as rhyming with “sales.” It’s an all-too-common gaffe, and Joe manages to suppress a wince. It’s an awkward moment that passes quickly however as the mayor goes on to do a perfect job of explaining

how Thales people just down the road are developing technology that is keeping the American war fighter safe overseas. He even credits Thales with “onshoring jobs” for American workers, and expresses the gratitude he feels for the company’s investment in his community. The speech concludes to enthusiastic applause. The event was a success. The mayor’s speech has helped bolster Thales’s reputation with local leaders whose influence extends all the way to the halls of the U.S. Congress. Certainly no harm was done by a slip of the tongue, and many of the Rotary Club attendees already know Thales quite well, thanks to Joe’s outreach efforts. Tips for Joe But, as Joe and others have asked, what can we do help improve the public’s basic understanding of our company and what we do, starting with our name? “Do exactly what Joe did, then do it again,” says Chip Sheller, head of communications for Thales in the U.S. “Building brand awareness is all about repetition. If people hear our name often enough, they will learn not only the proper pronunciation but become familiar with the most relevant facts about us over time. It’s not going to happen with one event or one speech. Educating people even on the basics takes a long-term effort.” But does using one-liners like “rhymes with Dallas” somehow trivialize the company and its mission?

• Global – Thales is a $15 billion global aerospace, defense and security company with nearly 70,000 employees in 50 countries. • U.S. – Thales operations can be found in 15 locations in 10 states. Our U.S. customers include the Department of Defense, the FAA, the Department of Homeland Security and many others. • Local – Relate the number of employees, products produced and customers served by Thales to a specific location.

“But remember, you don’t have to know everything about the company to be an effective ambassador,” says Sheller. “Talk about what you know – your job, your location and your customers. It’s going to have an impact.” “Not at all,” says Sheller. “Remember, you have to start somewhere. We’re not a household name like Coca-Cola. There’s no harm in using a one-liner that helps the person you’re talking to remember how to pronounce Thales. “You’re trying to start a conversation,” Sheller adds. “You can follow up by explaining that our legacy company, Thomson-CSF, was so successful as a scientific innovator that the company was renamed in 2000 after Thales of Miletus, the first philosopher known to explore ‘the school of natural philosophy’ – or science. If that conversation leads to a more detailed discussion of Thales’s businesses and capabilities in the U.S., that’s even better.”

So what can Joe do to help? “It can be helpful to organize your thoughts into sets of three,” says Sheller. “We tend to remember things more easily in groups. When I talk to people, I steer the conversation toward three levels: global, U.S. and local. Whether I’m meeting a reporter who doesn’t know us very well, or interviewing a candidate for a new position at Thales, I’ll make some of the same points.” See graphic above. The Company’s Brand Mission In 2007, Thales conducted a brand survey in the U.S. market, testing awareness of Thales in general, as well as familiarity with the company’s capabilities. The results were not surprising. Current customers were obviously familiar with the name and certain technologies Thales had introduced over the

years. Others in government and industry were significantly less familiar with the name and the company’s specific areas of proven technology leadership. In the coming years Thales will undertake some new efforts to build the company’s profile in the U.S. market. Starting with the basics – Thales’s worldwide reputation as a leader in the aerospace, defense and security sectors – company leaders will be focused on building a brand that is synonymous with innovation. “We’re going to do everything possible to make things easier for Joe and others like him,” says Sheller. “We’ll know our work is paying off when mayors from coast to coast introduce the company that ‘sounds like Dallas’ as a force to be reckoned with in the U.S. for years to come.”

THALES IN THE U.S.

Boeing 777 Aircraft

British Airways selects Thales in-flight entertainment Thales has been selected by British Airways to install the new Thales TopSeries in-flight entertainment (IFE) system on its delivery aircraft and next-generation aircraft.

he Thales IFE system being provided to British Airways is an ‘everything on demand’ system that lets passengers do what they want, when they choose. Thales TopSeries IFE system features include:

• Enhanced wide screen LCDs • Connectivity to personal electronic devices

• • •

In-seat power plugs for laptops Noise-cancelling headsets Access to more than 100 movies, 300 programs and 400 CDs, in addition to radio programs and podcasts

Thales TopSeries is manufactured in Irvine, California where nearly 1,000 people occupy 220,000 square feet of office, lab and manufacturing space. The system will be delivered for installation in 2010 on new delivery Boeing 777-300ERs, next generation Airbus A380 aircraft and the Boeing 787 Dreamliners.