"We are pleased that the army has asked us to provide additional Bradley Combat System vehicles," Andy Hove, director of Bradley Combat Systems for BAE Systems, said in a statement.

The deal involves four delivery orders between June 2006 and January 2008 for the US army's Tank Automotive and Armaments Command (TACOM).

Included in the deal is an agreement by BAE Systems to remanufacture and upgrade 450 older Bradleys to Bradley A3 vehicles. The total value of this order includes 55 vehicles as part of a contract worth 71.5 million dollars awarded in March. BAE plans also to provide spare parts for Bradley A3s.

"The Bradley A3 in particular is the most advanced digital combat system deployed today, and is most ready to integrate new technologies," said Hove, adding that it provides commanders with "outstanding situational awareness in the harshest urban fights".

BAE Systems, which also will upgrade 50 vehicles to Bradley A2 Operation Desert Storm, saw its share price climb 0.72 percent to 278.5 pence in afternoon London trading. The FTSE 100 of leading shares fell 0.63 percent to 5,046.80 points.

BAE was to also provide kits to convert 100 additional vehicles to the A2 ODS configuration, while remanufacturing 33 vehicles to Bradley Fire Support Team vehicles.

On Friday the British group said it had completed its 4.2 billion-dollar acquisition of United Defense Industries -- manufacturer of the Bradley tank -- following the receipt of regulatory and shareholder approvals.

UDI generated annual sales during 2004 of 2.292 billion dollars, and employs around 8,000 people in 25 locations in the United States and Sweden.

Its European interests include Sweden's Bofors Defence, which manufactures guns and ammunition for armoured vehicles and warships.

BAE, which entered the US market five years ago and has made 13 acquisitions, is now the fifth largest US defense contractor with 27,000 employees and five billion dollars in revenues in the sector.

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