The Czech defence ministry said Friday it had signed a deal worth 539 million euros (700 million dollars) with US giant General Dynamics for the purchase of 107 Pandur II armoured vehicles.
The vehicles will be made by Austria's Steyr Daimler Puch, a General Dynamics subsidiary.
A first batch of 17 Pandur II will be delivered to the Czech army by the end of the year, with the remainder to be rolled out by 2013.
"It is symbolic that we are signing this contract as the Czech Republic is marking the 10th anniversary of joining NATO," said Deputy Defence Minister Martin Bartak after the signing ceremony.
Prague initially signed a 798-million euro deal in June 2006 for 199 armoured vehicles but it scrapped the order in December 2007 because of problems during testing.
Early last year, the government decided to give Steyr Daimler Puch a second chance but scaled down the order.
The Pandur II is to replace the outdated OT-64 armoured vehicle which the then communist-run Czechoslovak army introduced in the 1960s.
It will be used by Czech army units on domestic and overseas assignments, the ministry said.
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