A new audio system for military pilot helmets that eliminates noise for clearer communications is being developed by Terma of Denmark and BAE Systems.

Initial work on the 3D-Audio/ANR headset will be jointly pursued for the next three years. The companies will them demonstrate the headset and helmet system before final product development, aircraft integration of the system and certification.

Terma's Active Noise Reduction and 3-D audio technologies will be used for the system.

"As a result of this agreement with BAE Systems, we expect to gain access to a significant market and increase exposure for these technologies globally," said Terma President and Chief Executive Officer Jens Maaloe. "We look forward to the collaboration, which will also contribute to the further development and improvement of our Active Noise Reduction and 3D-Audio products."

Added Group Business Development Director at BAE Systems Alan Garwood: "Today's announcement is further evidence of our strong links with Danish industry and Terma in particular. Combining our expertise will keep our market-leading pilot helmets at the cutting edge of technology.

"As well as investing finance and intellectual property in the project, BAE Systems will provide exposure to our global customer network for these two Terma technologies."