Terma and BEL Sign Strategic Cooperation Agreement

LYSTRUP, Denmark, December 14, 2010 - Today, Indian defense major Bharat Electronics Limited (BEL) and Danish
company Terma signed a strategic Memorandum of Agreement (MoA) on cooperation
in various fields of defense technology.

The signing ceremony took place under the patronage of the Danish
Minister for Foreign Affairs, Ms Lene Espersen, who is in India this week to
discuss bilateral cooperation between the two countries.

The agreement sets the frame for current and future cooperation between
the two companies, leveraging and complementing the unique strengths of the
companies. Under the MoA, BEL and Terma will cooperate on naval radar
technology and aircraft self-protection.

"This tie-up is very strategic and BEL is looking forward to working
together closely with Terma. This partnership will be mutually beneficial and
rewarding. BEL can help Terma meet its offset obligations in some upcoming
big projects," said BEL Executive Director (International Marketing), Mr G D
Gupta.

"We know BEL as a serious and highly experienced company which we are
looking very much forward to cooperate with," said Terma Corporate Vice
President, Customers & Markets, J0rn Henrik Levy Rasmussen.

"This important agreement is not limited to the Indian market but
includes opportunities to cooperate on other markets of common interest and
the possibilities for sourcing work from BEL to Terma's ongoing business,"
said Levy Rasmussen.

BEL is the primary integrator and supplier of defense electronics to and
a trusted partner of the Indian Armed Forces. Terma is a niche-oriented
aerospace & defense company with customers around the world.

In India, Terma sees potential for its advanced surveillance radars for
coastal and maritime applications. The future potential also includes
participation with Lockheed Martin in the Medium Multi-Role Combat Aircraft
(MMRCA) tender, where Terma will supply the self-protection system for the
F-16IN. Furthermore, Terma possesses a wide range of capabilities in
naval-related products and technologies.

The agreement signifies great potential for cooperation between India and
Denmark as well as for leading aerospace, defense and security companies like
BEL and Terma.

About BEL

Bharat Electronics Limited (BEL), leading Indian defense electronics
major, is a government-owned Navratna company. BEL is engaged in the design,
development and manufacture of a wide range of cutting-edge C4I solutions,
military communication systems, radars and sonars, naval systems, tank
electronics, electro optics and electronic warfare systems, for use by
defense services, paramilitary organizations and other government entities.

BEL is headquartered at Bengaluru, India. The company's turnover in
2009-10 was approximately USD 1140 million. BEL employs 11,545 people and has
nine manufacturing facilities spread across India. It also has offices in New
York and Singapore.

Further information about BEL is available at www.bel-india.com

About Terma

The business activities of high-tech company Terma include products and
systems for defense, non-defense, and security applications, including
command and control systems, radar systems, electronic self-protection
systems, space technology, and advanced aeronautic structures for
high-performance military aircraft.

Terma is headquartered in Aarhus, Denmark. The company realized a 2009/10
sales of approximately USD 210 million. Terma employs 1,250 people worldwide
and has operations in The Netherlands, Germany, the U.S., and Singapore.

Further information about Terma is available at www.terma.com.

For additional information please contact: BEL: Additional General Manager (Corporate Communication), H.V. Keshavamurthy, T: +91-80-25039241, M: +91-9900562080, E: keshavamurthyhv at bel.co.in; Terma: Corporate Vice President, Communications, Kasper Rasmussen, T: +45-8743-6000, M: +45-2022-6091, E: kar at terma.com