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Armor Wins $100M Up Armoring Contract (Oct. 4)

JACKSONVILLE, Fla. --- Armor Holdings, Inc. a leading manufacturer and distributor of security products and vehicle armor systems, announced today that it has received new contract awards to provide additional Up-Armored HMMWVs to the U.S. Army and various other customers.

Armor Holding’s Aerospace & Defense Group received modifications to its existing sole source contract supporting the U.S. Army Tank-automotive and Armaments Command. The Company stated that the new orders total $100 million, increasing its delivery requirements for M1114 Up-Armored HMMWVs beyond the recently announced $135 million award by funding additional 2005 production and establishing new funded backlog into 2006.

In addition to more U.S. Army vehicles, the new orders add production for the U.S. Air Force, a U.S. Federal Agency, international customers under Foreign Military Sales, internally developed gunner protection kits installed on the Up-Armored HMMWV, quantities of spare parts, and additional supplemental armor components that provide greater levels of protection. Work will be performed by the Armor Holdings Aerospace & Defense Group’s Fairfield, Ohio facility.

The Company also announced that terms have been finalized on the new multi-year contract which establishes Up-Armored HMMWV pricing through 2008. Management reported that projected high production volume and manufacturing efficiencies have resulted in an overall price reduction averaging approximately 15% lower than previous contract price levels, depending on the specific type of vehicle procured and other options selected by the customer.

“We are pleased that both the U.S. Army and the U.S. Air Force are quickly placing orders with FY05 Defense Bill funds,” said Robert Schiller, President and Chief Operating Officer of Armor Holdings. These orders, coupled with the new pricing structure, provide us with improved visibility into 2006. We expect that better visibility from the Army will enable us to provide incremental production capacity to fully support other customers, and we believe that more attractive pricing will also increase interest by foreign militaries to use this contract.” Mr. Schiller added,

“The completion of the new sole source contract and this latest order further demonstrates how the aggressive and sustained support for the Up-Armored HMMWV program by the Department of Defense and the Congress has helped significantly to ensure the safety and support of our troops.”

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Armor Holdings, Inc. Receives $100 Million Up-Armored HMMWV Order