Material Events Post 30 June 2009

As at September 2009, Boeing has yet to complete the modified test and evaluation program (originally scheduled for June 2009), making achievement of the planned November 2009 and March 2010 dates for delivery of initial and final capabilities highly unlikely.

While full details are yet to be determined, some aspects of the radar subsystem performance are not likely to meet specification at final delivery and will take additional time to rectify.

In August 2009, the Commonwealth entered into negotiations with Boeing for a commercial settlement over the delay and likely radar shortfalls, but has expressly reserved all its rights under the existing contract pending the outcome of the October 2009 Executive Summit.