RNS Number:7723R
Alvis PLC
06 November 2003


6 November 2003

#140M MOD VEHICLE CONTRACT for Alvis Vickers

Alvis plc's UK subsidiary Alvis Vickers Limited has today been awarded a prime
contract for the Future Command and Liaison Vehicle (FCLV) project by the UK
Ministry of Defence. This contract is valued at approximately #140m (excluding
VAT) for the supply of 401 Alvis Vickers MLV vehicles, and includes options for
up to 400 additional vehicles. The total value of the project is likely to be
enhanced significantly by the support arrangements, the details of which have
not yet been finalised. The contract award follows the earlier selection of
Alvis Vickers as preferred bidder for the project, announced on 17th July.

Alvis Vickers has signed a sub-contract with Iveco SpA to supply major vehicle
sub-assemblies. The signature of this sub-contract cements the agreement between
Alvis Vickers and Iveco to provide vehicles jointly for the FCLV programme.
Earlier this year Alvis Vickers and Iveco signed an exclusive co-operative
marketing agreement for MLV covering a wide range of export territories.

MLV is an important addition to the Alvis product range and significant
additional sales potential has been identified both in the UK and export
markets.



For more information contact:

Martin Greenslade                   Tel: 020 7808 8888
Finance Director
Alvis plc
34 Grosvenor Gardens
London SW1W 0AL

Mary Ann Griffiths,                 Tel: 020 7808 8886
Group Communications Manager        Mob: 07887 787935

Alvis plc                           maryanngriffiths@alvis.plc.uk
34 Grosvenor Gardens
London SW1W 0AL



Notes

1. 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 #310 million (on a
   pro-forma basis). To know more visit www.alvis.plc.uk

2. Other businesses in the Alvis Group include Alvis Vickers and Alvis Bridging
   in the UK, Alvis Hagglunds AB in Sweden, Alvis Moelv AS in Norway, Alvis OMC
   and Alvis Gear Ratio in South Africa.

3. 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 series production which will run from
   2006 to 2009. The total number of vehicles to be produced, and hence the
   total value of the contract, has been reduced since the 17th July
   announcement for MOD planning reasons.

4. 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.

5. MLV is based on an Iveco vehicle which has been developed for a major
   Italian Army programme. For the British FCLV programme, Alvis Vickers will
   integrate UK specific mission equipment.


                      This information is provided by RNS
            The company news service from the London Stock Exchange

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