, Inc. has entered into a Memorandum of Understanding with the U.S. Army Engineer District,
Philadelphia for the issuance of a modification for $4.3m to increase the contract price of the contract entered into in September 2002 to design, construct, test and deliver four towboats. In addition, the agreement provides for time extensions to complete
certain aspects of the contract. This agreement was reached to fully
resolve and settle the claim filed by Conrad’s subsidiary, Orange
Shipbuilding, in July 2005. The Corps has agreed to pay the settlement
amount at the earliest possible date as funds become available. Conrad
expects to receive the funds within the second quarter of 2006,
although no assurances can be given.