Engineered Support Receives $11.1 M in Orders

Wednesday, May 21, 2003
Engineered Support Systems, Inc. has received orders totaling $11.1 million under the U.S. Navy's LPD-17 San Antonio Class Amphibious Transport Ship program. Northrop Grumman Ship Systems, a division of Northrop Grumman Corporation, recently exercised production options under existing subcontracts with the Company for the manufacture of four separate shipboard systems for the third and fourth ships of the program. Including previous awards and option exercises, Engineered Support has received funded contracts for the LPD-17 program totaling $25.3 million with additional options of approximately $45 million for the eight remaining ships expected to be built, according to Jerry Daniels, Vice Chairman and Chief Executive Officer. The LPD-17 vessel is designed to transport and land a Marine expeditionary force by helicopter, tilt rotor aircraft, landing craft and amphibious vehicle. The ships measure 684 feet in length and displace 25,000 tons. The vessel has a planned crew of more than 400 sailors and can transport more than 700 Marines, including support equipment. A total of 12 ships are planned under the program with expected delivery of the first vessel to the Navy in 2005. The design and production work is being performed by several business units within the Company's Light Military Support Equipment segment including, Marlo Coil, Keco Industries and Engineered Air Systems. Marlo Coil is the leading provider of battle-tested air handling units, heating/cooling coils and refrigeration systems aboard the U.S. Navy's fleet of surface combatant ships. Keco Industries and Engineered Air Systems provide a variety of military support equipment to America's armed forces including environmental control units, chemical/biological/nuclear collective protection systems and fuel and water distribution systems. The four separate shipboard systems designed and developed by the Company for the LPD-17 vessel include Refrigeration Plants that cool perishable and frozen food (Marlo Coil); Cooling Coils and Fan Coils that meet air conditioning and heating needs for crew and equipment (Marlo Coil); Reverse Osmosis Desalination Units that convert seawater into safe, sanitary drinking water for crewmembers and equipment maintenance (Keco Industries); and, Water Mist Firefighting Pumps that are used for fire suppression (Engineered Air Systems). Delivery of equipment under the current production options is scheduled throughout fiscal 2003 and 2004. Remaining production options under subcontracts are expected to be exercised through 2009.

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