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

Apr 11, 2001, 01:00 ET from United Industrial Corporation

    NEW YORK, April 11 /PRNewswire/ -- United Industrial Corporation
 (NYSE:   UIC) 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.
 
     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.  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 as filed with the Securities and Exchange Commission.
 
     For more information, please visit United Industrial's web site at
 http://www.unitedindustrial.com.
 
 

SOURCE United Industrial Corporation
    NEW YORK, April 11 /PRNewswire/ -- United Industrial Corporation
 (NYSE:   UIC) 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.
 
     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.  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 as filed with the Securities and Exchange Commission.
 
     For more information, please visit United Industrial's web site at
 http://www.unitedindustrial.com.
 
 SOURCE  United Industrial Corporation

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