Frost & Sullivan Expects Soaring Defence Budgets and Increased Procurement in Brazil, Russia, India and China (BRIC)

LONDON -

Frost & Sullivan estimates that the rapidly developing economies of Brazil, Russia, India and China (BRIC), will reach their collective peak by 2050, overtaking current economic leaders to emerge as the world’s richest nations. As their economies rebound, defence budgets and procurement will soar, offering enormous growth opportunities for diverse defence industries.

(Logo: www.newscom.com/cgi-bin/prnh/20081117/FSLOGO)

New analysis from Frost & Sullivan (www.aerospace.frost.com), An Executive Analysis of the Defence Budget and Procurement in the BRIC Countries, finds that the BRIC countries accounted for 12.6 per cent of the total global defence expenditure in 2008. Considerable market potential exists primarily because of the priority placed on force modernisation and because of the persistent threat of terrorist activities

BRIC countries account for a combined expenditure of nearly 13.0 per cent to the global defence expenditure, with the United States contributing more than 40 per cent and the Europe with approximately 25 per cent. This makes BRIC the second largest contributor in terms of defence budget allocations. With the economies of the four countries growing at a much faster pace, these countries hold huge market potential for defence equipments, especially Brazil and India.

All four countries have nuclear capability and are active in the area of space research. Moreover, the combined numbers of active and reserve troops in the BRIC countries matches the total number of troops in the rest of the world.

Majority of the defence equipment suppliers to the BRIC countries are public sector companies or government companies. This situation is slowly changing with more number of private and international industry participants getting active in contracts and deals.

“With massive numbers of troops to maintain, defence budget allocations are naturally high and expected to escalate faster than in the rest of the world,” notes Frost & Sullivan Research Analyst Harish Balasubramanian. “Modernization and troop upgrades alone will involve mammoth budgets, making these four countries growth hot spots for defence industries.”

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, please contact Monika Kwiecinska, Corporate Communications, at monika.kwiecinska@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, a brief brochure will be emailed to you.

An Executive Analysis of the Defence Budget and Procurement in the BRIC Countries is part of the is part of the Defence Growth Partnership Service programme, which also includes research in the following markets: European Naval Sensors (EO/IR) Market Assessment, European Defence Logistics Information Systems Market Assessment, European ISR Land Radar Market Assessment and, Global Defence Budget Assessment. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company’s Growth Partnership Service provides the CEO and the CEO’s Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents. To join our Growth Partnership, please visit www.frost.com.

An Executive Analysis of the Defence Budget and Procurement in the BRIC Countries

M3B9

Contact: Monika Kwiecinska Corporate Communications - Europe P: +48-22-390-4127 F: +48-22-390-4160 E: monika.kwiecinska@frost.com

www.frost.com

Source: Frost & Sullivan

Monika Kwiecinska of Frost & Sullivan Corporate Communications - Europe, +48-22-390-4127, fax, +48-22-390-4160, monika.kwiecinska at frost.com