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In 2007 Thales created the legal business entity that will oversee the company's U.S. maritime business, Thales Naval, Inc. Also in 2007, the company formed a joint venture with DRS Technologies, called Sonar Systems. Sonar Systems partners two leading global defense technology companies in order to become a preferred provider of UWS solutions for U.S. and foreign military forces. The joint venture company will manufacture undersea warfare products and systems under license from Thales and serve as the point of contact for sales and support in the United States. The new company also will develop new underwater systems tailored to U.S. Navy requirements by integrating subsystems from other contractors and Thales's extensive product base.

This arrangement provides an great opportunity for Thales Underwater Systems - the largest supplier of underwater systems outside the U.S. The partnership allows Thales to leverage its global expertise in designing sonar systems for ships, submarines and aircraft and deliver unparalleled sonar solutions in the U.S. market.

Prior to the formation of the JV, Thales Underwater Systems, a business within our Naval Division (DNL), provided the U.S. Navy's MH-60 Martime Strike Squadron with Thales's airborne low frequency sonar (ALFS) system. Following the formation of Sonar Systems, the ALFS program and a wide range of other undersea warfare systems will be brought to market by Thales and DRS under the auspices of the JV company.