UIC United Indl Corp

HUNT VALLEY, Md., Oct. 3 /PRNewswire-FirstCall/ -- United Industrial Corporation (NYSE:UIC) announced that its subsidiary AAI Corporation has been awarded a contract by General Atomics Aeronautical Systems, Inc. (GA-ASI) to provide AAI's One System(TM) ground control equipment and technologies for the U.S. Army's newest unmanned aerial vehicle (UAV) program. AAI's portion of the Extended Range/Multi-Purpose (ER/MP) UAV system development and demonstration contract has an estimated value of $30 million over the term of the contract, with approximately $1 million funded to date. AAI developed and produces its One System ground control station (GCS) as part of the U.S. Army's ongoing Shadow(R) Tactical Unmanned Aerial Vehicle (TUAV) program. This state-of-the-art ground control station serves as the technological, operational, and intelligence-gathering heart of the ER/MP system known as Warrior(TM). The ER/MP One System GCS complies with STANAG 4586, a NATO standardization agreement that enables various UAVs to share information through common ground stations, thus enhancing interoperability among allied military forces. "AAI is considered a premier designer, manufacturer, and systems integrator of ground control station capabilities for UAV systems, and this competitive win is a major endorsement of our leadership," said Frederick M. Strader, president and chief executive officer of United Industrial and AAI Corporation. "It's an important step toward our goal of having the AAI One System chosen as the common ground control station across the services," Strader added. "Use of One System as a common ground control station provides value and cost efficiencies for the U.S. Defense Department." Currently in production and fielded with Shadow TUAV systems, the soldier friendly One System GCS was used to control the Warrior UAV during the ER/MP systems capabilities demonstration in early 2005. The One System GCS has also controlled the U.S. Army Hunter system, and a STANAG 4586 compliant version is scheduled to fly the U.S. Marine Corps Pioneer tactical UAV system in the first quarter of 2006. AAI's One System GCS has been in Army service since 2001, logging more than 50,000 hours of operation, warfighter support, and training. The system has proven its durability and reliability in the harsh battlefield environment in Iraq. The ER/MP UAV contract, which has been named the Warrior, is for systems development and demonstration (SDD) of a new UAV system intended to replace the Hunter. The Warrior's SDD phase is scheduled to last about 48 months, and initial operational capability is expected in fiscal year 2009. The Army intends to procure 11 Warrior systems, each with 12 aerial vehicles, five ground control stations, and other support equipment such as ground data terminals, spares, and interactive electronic technical manuals required to field a complete system. Total program value for the SDD and production phases is estimated to be about $1 billion. The new Warrior UAV will be capable of executing missions such as reconnaissance, communications relay, and attack with its multiple weapons. Warrior's network connectivity using the One System GCS will reduce sensor-to- shooter time to suppress enemy threats more effectively. Warrior also will include an automatic takeoff and landing system and control via satellite communications and the Army's tactical common data link. GA-ASI, a leading manufacturer of unmanned aircraft and high resolution surveillance and radar imaging systems, is the prime contractor for the Army's ER/MP program. Team Warrior partners are AAI for GCS equipment and technologies, and SPARTA, Inc., for logistics and supportability. United Industrial Corporation designs, produces, and supports defense systems. Its products and services include unmanned aerial vehicle systems, training and simulation systems, automated aircraft test and maintenance equipment, armament systems, logistical and engineering services, and other leading-edge technology solutions for defense needs. The company also manufactures combustion equipment for biomass and refuse fuels. For more information, visit http://www.unitedindustrial.com/ and http://www.aaicorp.com/. Except for the historical information contained herein, information set forth in this news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "anticipates," "intends," "plans," "believes," "estimates," and variations of such words and similar expressions that indicate future events and trends are intended to identify such forward-looking statements, which include, but are not limited to, projections of revenues, earnings, segment performance, cash flows, and contract awards. These forward-looking statements are subject to risks and uncertainties including without limitation, program cancellations and changes in program funding, which could cause the company's actual results or performance to differ materially from those expressed or implied in such statements. The company makes no commitment to update any forward-looking statement or to disclose any facts, events, or circumstances after the date hereof that may affect the accuracy of any forward-looking statement. For additional information about the company and its various risk factors, please see the company's most recent annual report on Form 10-K and other documents as filed with the Securities and Exchange Commission. Warrior(TM) is a trademark of General Atomics Aeronautical Systems, Inc. DATASOURCE: United Industrial Corporation CONTACT: Stuart F. Gray, +1-410-628-8686, , for United Industrial Corporation Web site: http://www.unitedindustrial.com/ http://www.aaicorp.com/ Company News On-Call: http://www.prnewswire.com/comp/113559.html

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