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EADS Defence & Security: Sees R&D Spending Rising In 2010

- FRANKFURT -(Dow Jones)- European Aeronautic Defense & Space Co. NV's (EAD.FR) Defence & Security unit will likely spend more on research and development this year due to weakening financing conditions among customers in Europe, Defence & Security Chief Executive Stefan Zoller said Wednesday at a press conference. Zoller said the unit may have to spend more up front on developing Talarion, an unmanned aerial vehicle, or UAV, because prospective customer nations don't have the money to spend on it this year. Zoller said development and production is estimated to cost EUR1.5 billion each. However, he said the unit doesn't want to fully finance pre-production of an "an off-the-shelf" model because customers may want modifications which would increase costs. He said the unit is experiencing increased interest from Turkey for the UAV system, which not only includes the aircraft but also ground stations and electronics which control the aircraft. Company Web site: http://www.eads.com -By Allison Connolly, Dow Jones Newswires; +49 69 29725 500; allison.connolly@dowjones.com Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=qf7GmPAK99PAKJGELe28Wg%3D%3D. You can use this link on the day this article is published and the following day.

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