Australian Contract Win

Pennant International Group PLC
4 September 2000


PENNANT INTERNATIONAL GROUP PLC SECURES SIX-YEAR AUSTRALIAN SUPPORT CONTRACT
WITH BAE SYSTEMS

Pennant Training Systems Limited is pleased to announce that it has been
awarded a contract by BAE Systems to provide in-service support for the Royal
Australian Air Force Hawk Lead-In Fighter Computer Based Training & Virtual
Aircraft Training System, CBT&VATS, identified in Australia as CBIS/SMOTS. 
The in-service support contract of significant value will cover an initial
period of six years commencing 1st October 2000.

Under the contract Pennant will provide staff in Australia, supporting
CBT&VATS installations at RAAF Williamtown and RAAF Pearce, with back up
resources based in Cheltenham, England.  Pennant will be responsible for
ensuring the availability of CBIS/SMOTS for effective training is met in
accordance with the contract.  The service support provided by Pennant covers
the hardware installations at the two bases, installed network, system and
operating software, plus the Hawk Lead-In Fighter CBIS/SMOTS training media.

Pennant has been developing CBIS/SMOTS, an integrated CBT&VATS, in partnership
with BAE Systems since August 1999.  CBIS, the Computer Based Information
System, provides a comprehensive capability of delivering CBT courseware
covering all Hawk Lead-In Fighter systems for the training of aircrew and
groundcrew in both instructor-led and self-paced modes.  The integrated SMOTS,
the Systems Maintenance Operations Training System, is a virtual Hawk enabling
free-play interaction between students and their virtual aircraft.  SMOTS is
designed for ground mode operation and is used to practice operational
procedures, maintenance procedures and fault diagnostics.  The instructor has
the facilities to configure the virtual aircraft to represent its physical
condition and its geographical positioning anywhere in the world.  Students
interface with the virtual aircraft as they would the real Hawk and have
available to them simulated test sets and emulated ground support equipment.

The first integrated CBT&VATS system developed by Pennant, covering the Hawk
Mk100 and Mk200, entered service in the Asia/Pacific region in 1998. The first
installation of CBIS/SMOTS at RAAF Williamtown was made in January 2000 and
the second base installation is scheduled for later this year.  

'We are delighted to have been selected by BAE Systems for this in-service
support contract in Australia,' said Joe Thompson, Chief Executive Pennant
International Group, 'it further strengthens our working relationship with BAE
Systems and our leading position as supplier of Hawk training systems.  It is
a landmark contract and serves to reinforce our commitment to the Australian
Defence Forces where, as a Group, we have other interests and product support
commitments.'

Pennant Training Systems Limited, formerly trading as Pennant International
Limited, is a wholly owned subsidiary of Pennant International Group plc,
based in Cheltenham, England.  Pennant International Group plc joined the
Alternative Investment Market of the London Stock Exchange in March 1998. 


For further information, contact:
Joe Thompson, Chief Executive, Pennant International Group plc:             
Tel: [phone]
Phil Barwell, Sales & Commercial Director, Pennant Training Systems Ltd:      
Tel: [phone]
Barrie Newton, Rowan Dartington: Tel: [phone]
Ken Rees, Winningtons: Tel: [phone] Mobile: [phone]