Arotech's Power Systems Division Awarded $6.7 Million Production Contract

Aug 19, 2015, 08:00 ET from Arotech Corporation

ANN ARBOR, Mich., Aug. 19, 2015 /PRNewswire/ -- Arotech Corporation (Nasdaq GM: ARTX) announced today that its North American Power System Division, which includes UEC Electronics, has been awarded a $6.7 million task order from the Space and Naval Warfare Center (SPAWAR) Atlantic.

The contract awarded is for the manufacture and integration of 12 Communication Emitter Sensing and Attacking System (CESAS) II Platform Integration Kits (PIK). The CESAS is the Marine Corps' only high-power, ground-mobile electronic attack (EA) asset. The CESAS provides Commanders with the capability to detect, deny, and disrupt the communications of their enemy.

"UEC Electronics has been supporting the SPAWAR Intelligence group for more than 10 years and is pleased with the most recent contract award," said Mark Matthews, CEO of UEC Electronics. "The DoD is focused on cost savings. Our automated manufacturing processes, coupled with our history of quality products and on-time delivery, make us an ideal provider for this type of mission critical system." 

Arotech received this award following the successful completion of a prototype test of the CESAS II PIK, which performed exceptionally well during U.S. Government-led performance and environmental testing. 

Arotech expects to complete this production contract in the next 12 months. The government has an option which, if exercised, will result in a second year of support for the program.

Steven Esses, President and CEO of Arotech, commented, "The award of this contract is a testament to our team and performance of our product. We are excited about the initial opportunity and are optimistic that this award could lead to the procurement of additional units in the future."

About Arotech Corporation

Arotech Corporation is a leading provider of quality defense and security products for the military, law enforcement and homeland security markets, including multimedia interactive simulators/trainers and advanced zinc-air and lithium batteries and chargers. Arotech operates two major business divisions: Training and Simulation, and Power Systems.

Arotech is incorporated in Delaware, with corporate offices in Ann Arbor, Michigan, and research, development and production subsidiaries in Michigan, South Carolina, and Israel. For more information on Arotech, please visit Arotech's website at www.arotech.com.

Investor Relations Contacts:

Brett Maas / Rob Fink
Hayden IR
(646) 536.7331 / (646) 415.8972
ARTX@haydenir.com

Except for the historical information herein, the matters discussed in this news release include forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect management's current knowledge, assumptions, judgment and expectations regarding future performance or events. Although management believes that the expectations reflected in such statements are reasonable, readers are cautioned not to place undue reliance on these forward-looking statements, as they are subject to various risks and uncertainties that may cause actual results to vary materially. These risks and uncertainties include, but are not limited to, risks relating to: product and technology development; the uncertainty of the market for Arotech's products; changing economic conditions; delay, cancellation or non-renewal, in whole or in part, of contracts or of purchase orders (including as a result of budgetary cuts resulting from automatic sequestration under the Budget Control Act of 2011); and other risk factors detailed in Arotech's most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2014 and other filings with the Securities and Exchange Commission. Arotech assumes no obligation to update the information in this release. Reference to the Company's website above does not constitute incorporation of any of the information thereon into this press release.

 

SOURCE Arotech Corporation



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