22 August 2002

Successful Year End for Kelvin Hughes

22 August 2002 - Hainault UK - Kelvin Hughes, part of Smiths Aerospace - Marine Systems, has finished its financial year on a high with the completion of its major restructuring and rebuilding programmes.

Peter Cooney, Group Managing Director Ship Management Division of V Ships, opened the company's new Commercial Engineering Facility on Tuesday 20th August in the presence of Dr. John Ferrie, Group Managing Director of Smiths Aerospace and other guests from the shipping, financial and government organisations with members of Kelvin Hughes staff.

This new facility is the last major onsite rebuilding project and finally brings together, in one building, all aspects of the commercial engineering including software and hardware design, Integrated bridge project management. It also has a new communications area with a video conferencing facility.

John Ferrie commented, "We have had a year of extreme change and have forged a new company in Kelvin Hughes that is fit to compete in a tough market and supply real value to our customers."

Ron Nailer, managing director of Kelvin Hughes added, "Despite turbulence in our market, we have improved both our sales and profits on last year and have confidence that we will significantly improve our performance in the new financial year, which started this month.  We believe our products, such as the Queen Mary II Integrated Bridge, Voyage Data Recorder, Naval Navigation and Tactical Display and Charts Services are ahead of the field. Many of these developments stem from our ability to use the technological resources of our companion companies in Smiths Aerospace and with the backing that we receive from Smiths, Kelvin Hughes will be able to grow successfully in the coming year."

Notes to editors:

Organisation structure

Kelvin Hughes has been restructured from a traditional vertically organised company into one more focused on its customers requirements.

Three global businesses, Commercial, Naval and Charts & Maritime Supplies (CAMS) have been formed, each with it's own management, production, sales and engineering departments. In the case of the Naval and CAMs businesses they have been relocated into single areas within the Hainault site. The overseas companies in Denmark, Netherlands, Norway, Singapore and China have now been integrated into the global businesses.

The organisational and physical restructuring has transformed the company into a modern

unit with a workforce which is highly motivated and has a keen sense of purpose. The lean organisation processes now in place will enable the company to more easily identified and control its costs. A new powerful drive in marketing and product strategies combined with closer relationships with customers, suppliers and distributors will enable the company to deliver what the customer wants when he wants it.