Neuchâtel – May 24, 2005. Colibrys SA, Neuchâtel, Switzerland announced today signing a Preferred Supply Agreement with BAE Systems, Plymouth UK . Within this agreement, Colibrys will be a preferred supplier of High performance accelerometers for use within BAE Systems' Inertial Measurement Units (IMUs) commonly supplied for use into various Defence and Aerospace applications.

“This agreement confirms a very close working relationship established between the two companies over many years”, said Sean Neylon, Chief Executive Officer of Colibrys. “We have established ourselves over the past few years as a best-in-class supplier of high stability Micro Electro-Mechanical Systems (MEMS) accelerometers. Having a lead customer-supply relationship like this allows both companies to minimise risks and investments and to accelerate development of new IMUs. BAE Systems has already placed significant production contracts with Colibrys for supply of accelerometers against its NLAW Anti-tank missile guidance contracts. Our mutual objective is to assure European and US sourcing of very high stability MEMs based accelerometers to displace existing expensive and fragile ‘Vibrating Quartz' technology”. “Furthermore, the recent acquisition of the Applied MEMs facility in the USA by Colibrys will allow sourcing of accelerometers from both US and Europe , thereby assuring End User supply requirements are met”.

BAE Systems Purchasing Manager, Andy Cromwell said, “BAE Systems is pleased to have Colibrys on board as its preferred partner for supply of accelerometers. They will complement our world class MEMs gyro and systems capabilities. We are currently competing for many European and US applications for high precision Tactical Weapons systems. Having a reliable supplier of robust, high stability, compact accelerometers will allow us to be extremely competitive in winning significant market share in the coming years”.

About Colibrys

Colibrys is a world-leading supplier of standard MEMS products and innovative custom MEMS solutions.  Colibrys has the full breadth of MEMS capability, undertaking design, development, wafer fab manufacture, packaging, and test of MEMS components.  Colibrys is focusing its efforts where the potential for market sales growth remains very high, especially in professional Navigation and Guidance systems, Life sciences, Telecommunications networks, Energy, and Industrial Imaging and Display Applications.  Additional information is available at www.colibrys.com .

About BAE SYSTEMS

BAE Systems is an international company engaged in the development, delivery, and support of advanced defense and aerospace systems in the air, on land, at sea and in space.

BAE Systems North America is one of America 's foremost national security, aerospace, and information systems companies. It is a leading provider of electronic and information-based systems and knowledge-based solutions that meet its customers' mission effectiveness and operational safety needs. BAE Systems North America employs more than 30,000 people at sites across the United States and the United Kingdom and generates more than $5 billion in annual sales. Read more about BAE Systems at http://www.baesystems.com/ .

About MEMS Technology

MEMS ( M icro- E lectrical- M echanical S ystems) are highly miniaturized devices that integrate a number of functions including fluidics, optics, mechanics and electronics on a single silicon chip using techniques similar to traditional integrated circuit process technology.  MEMS merges sensing, actuating, and computing into miniature systems that enable enhanced levels of perception, control and performance.

CONTACT:      Colibrys                                                          BAE Systems
                       Mr. Domenico Fumagalli                                Mrs. Anne-Marie Kunec
                       Sales Director Europe                                     Business Development Manager
                       +41 (32) 720 5590                                      +44 (1752) 72 2219

Colibrys SA – Maladière 83 – P.O. Box 20 – CH-2007 Neuchâtel – Switzerland – tel +41 32 720 5811 – www.colibrys.com