UIC United Indl Corp

U.S. Army Orders 11 Additional Shadow(TM) Tactical Unmanned Aerial Vehicle Systems from United Industrial's AAI Corporation in Contracts Valued at $97 Million HUNT VALLEY, Md., March 1 /PRNewswire-FirstCall/ -- United Industrial Corporation said today that its AAI Corporation defense subsidiary has received two related orders from the U.S. Army for a total of 11 additional RQ-7A Shadow Tactical Unmanned Aerial Vehicle (TUAV) systems. Total value of the two orders is $97 million. The initial order was issued as a not-to-exceed $70 million contract for eight RQ-7A Shadow TUAV systems under the Army's fiscal 2004 full-rate production (FRP) requirement and commits nearly $35 million to production now with an additional $35 million of funding to beadded later this year. The second order, issued as a not-to-exceed $27 million contract, exercises additional options in the fiscal 2004 FRP contract for three supplemental RQ-7A systems. This order commits approximately $13 million to production nowwith the remainder of the funding to be added later in 2004. The Army announced at the end of December 2003 that it was extending its full-rate production contract to AAI Corporation for the continued manufacture and delivery of RQ-7A Shadow TUAV systems. That action came a year after AAI Corporation won its initial FRP award for the design and production of the Army's first tactical UAVs. U.S. Army orders for Shadow systems now total 33, of which 15 have been delivered with additional deliveries extending through December 2005. Each Shadow TUAV system consists of four air vehicles, two ground control stations, and associated components and support equipment. The work will be performed at AAI's manufacturing facility in Hunt Valley, Md. United Industrial is a company focused on the design and production of defense and training systems. In addition to unmanned aerial vehicles, its products include training and simulation systems, automated aircraft test and maintenance equipment, and logistical/engineering services for government- owned equipment. Except for the historical information contained herein, information set forth in this news release may contain forward-looking statements subject to risks and uncertainties 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 datehereof that may affect the accuracy of any forward-looking statement. For additional information about the company and its various risk factors, reference is made to the company's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q as filed with the Securities and Exchange Commission. For more information, visit http://www.unitedindustrial.com/ and http://www.aaicorp.com/. DATASOURCE: United Industrial Corporation CONTACT: James H. Perry of United Industrial Corporation, +1-410-628-8786, Web site: http://www.unitedindustrial.com/ http://www.aaicorp.com/

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