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AAI Wins US Army Tactical UAV Deal (Apr. 12)



NEW YORK---United Industrial Corporation today announced that its AAI Corporation subsidiary has received an additional $19.4 million contract award on its ongoing program to field the U.S. Army's next-generation Tactical Unmanned Aerial Vehicle (TUAV) system.

The award follows AAI's successful completion of a series of operational field tests and paves the way for a full-rate production contract for the TUAV program. This most recent award brings the current contract value to $83.6 million.

Since the initial contract award in December 1999, AAI has produced a TUAV system, based on its Shadow family of unmanned aerial vehicles, and delivered the first four low-rate initial production systems for testing at Fort Huachuca, Arizona. Based on the successful results, the Army has exercised contract options totaling $19.4 million for delivery of four additional low-rate initial production systems.

AAI anticipates a full-production contract to be awarded in the Fall, following completion of the Army's next phase of testing. The full-production contract may be for as many as 36 additional systems over the next four years, valued at more than $300 million.

Richard R. Erkeneff, President and Chief Executive Officer, commented, "We are delighted to have reached this significant milestone on the TUAV program and look forward to proceeding on this important contract for the U.S. Army. AAI's extensive experience with unmanned aerial vehicles has been a critical advantage on this key program, allowing us to move forward on an accelerated timetable to meet our customer's objectives. Our team will continue to put its expertise to work to complete this program and reinforce AAI's leadership position in the UAV industry.''

The TUAV system is designed to provide brigade commanders with improved surveillance and reconnaissance capabilities.

United Industrial Corporation is a company focused on the design and production of defense, training, transportation, and energy systems. Its products include unmanned aerial vehicles, training and simulation systems, automated aircraft test and maintenance equipment, and ground transportation components. The Company also offers logistical/engineering services for government-owned equipment and manufactures combustion equipment for biomass and refuse fuels.

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United Industrial ReceivesAdditional $19.4 Million Contract Award On Tactical Unmanned Aerial Vehicle Program