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Argon ST to Upgrade US Navy Torpedo Defense System

FAIRFAX, Va. --- Argon ST, Inc., announced today that it has been awarded a multi-year contract for the continued development and production of the AN/SLQ-25A Torpedo Countermeasures System for the U.S. Navy.

The contract was awarded by the U.S. Naval Sea Systems Command (NAVSEA 415) for the continued development and support of the AN/SLQ-25A system which is widely deployed on Navy surface ships.

Work under the contract will primarily be accomplished at Argon ST's Smithfield, Pennsylvania facility with support from the corporate headquarters in Fairfax, Virginia.

The contract calls for a base year with four additional option years. The first increment of tasking on the base year has a value of $17.65M. It is anticipated that additional tasks and funding will be added to this contract during both the base and option years.

In announcing the award, Mr. Kerry Rowe, Chief Operating Officer of Argon ST, stressed the importance of the contact for the Navy and the company's operations in Pennsylvania. "This new contract will lead to the creation of the next generation baseline system for the AN/SLQ-25/25A line of systems which upon successful sea testing during the base year will be designated as the AN/SLQ-25C. There are presently more than 170 systems in the U.S. Navy inventory and 220 systems delivered to allied navies worldwide. We expect many of these systems to be replaced or retrofitted in the coming years with the upgraded system which includes an Open Architecture software system, a lightweight modular winch and other enhanced operating efficiencies designed to provide better ship protection from torpedo attack."

This contract initially had been planned by Argon ST for FY06 Q3 implementation but operational delays in sea testing and contract implementation unexpectedly pushed the award into FY07. Production plans for the AN/SLQ-25C system are scheduled to begin in FY08.

Argon ST designs, develops, and produces systems and sensors for the Command and Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR) markets including SIGINT (signals intelligence), ESM (Electronic Support Measures), EW (Electronic Warfare), imaging, and acoustic systems serving domestic and worldwide markets.

Argon ST Awarded AN/SLQ-25A Torpedo Defense Contract by the Navy