Forum: F-16 Procedures

SOURCE: United Industrial Corporation
United Industrial Subsidiary Awarded Letter Contract and Initial $14 Million Funding from Hill Air Force Base for Egyptian F-16 Maintenance Depot

NEW YORK, Oct. 25 /PRNewswire/ -- United Industrial Corporation (NYSE: UIC - news) today announced that its ACL Technologies (ACL) subsidiary has received a letter contract to initiate all efforts necessary to perform as the Integration Contractor for the construction of a F-16 maintenance depot in Egypt.

Awarded by Hill Air Force Base in Ogden, Utah, the contract is part of the Foreign Military Sales program between the United States and the Government of Egypt. The contract will be completed over a two-year period and will provide the Egyptian Air Force with the capability to repair and overhaul over 350 components on the F-16 Fighter Aircraft. ACL will receive initial funding of $14 million, pending final agreement on the entire scope of work. The full contract is valued at up to $28 million, with additional options to be considered.

Under the contract, ACL will purchase, manufacture and integrate equipment and provide other services necessary to establish a component overhaul capability for the Egyptian Air Force. The scope of the contract includes, fuel, hydraulics, pneumatics, oxygen, landing gear, electrical, instrument and machine shops, all of which will be located near Cairo, Egypt.

Richard R. Erkeneff, United Industrial's President and Chief Executive Officer, commented, ``This contract award represents an important milestone in our ongoing strategy to build United Industrial's ACL Technologies business. ACL's performance in providing equipment and services to the F-16 depot programs is second to none, and we are particularly proud that both the United States Air Force and the Egyptian Air Force have designated ACL as their Integration Contractor. We expect that as other nations initiate their own efforts to obtain depot capability, this will provide additional opportunities for ACL.''

ACL Technologies, located in Brea, California, is a leader in providing test equipment and services to the aerospace industry.

United Industrial Corporation is a high technology company focused on the design and production of defense, training, transportation, and energy systems. Its products include unmanned air vehicles, training and simulation systems, automated aircraft test and maintenance equipment, and ordnance systems. It also manufactures ground transportation components, combustion equipment for biomass and refuse fuels, and specialized firefighter training installations.

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