ADSI Awarded $9.9 Million Contract From U.S. Marine Corps to Add Crew Protection Kits to Terex MAC-50 Cranes
HICKSVILLE, NY--(eMediaWorld - May 21, 2009) - American Defense Systems, Inc. ("ADSI")
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The 50-ton all-terrain cranes will be fitted with ADSI CPKs on both the large driver cab and on the smaller side cab for the crane operator. ADSI plans to begin fulfilling an initial $4.5 million delivery order for CPKs in the current calendar quarter and complete it before the end of the year. Approximately $2.5 million of the award will fund FSRs over the term of the contract.
More information about the award (#M67854-09-D-5038) can be found on the DoD DefenseLINK website: www.defenselink.mil/contracts/contract.aspx?contractid=4030.
"This award continues our recent increase in orders from the U.S. military to provide protective technology to construction vehicles in support of our brave military service personnel in Iraq and Afghanistan," said ADSI's chief executive officer, Anthony J. Piscitelli. "This is one of our largest single orders to date and is part of the contract expansion we were anticipating in 2009."
"As these orders continue to come in, we believe ADSI is increasingly becoming the U.S. Military standard for CPKs," continued Piscitelli. "The growing use and installation of our CPKs strongly positions us to secure long-term recurring revenue through ongoing support, maintenance, repair, spare parts and reconditioning opportunities over the life of these vehicles. We are naturally very proud to have this responsibility of protecting our military service personnel with our state-of-the-art CPKs, which have already saved many lives and protected our brave men and women from serious injury."
This U.S. Marines Corps contract builds upon several recent U.S. Military-related awards and orders received by ADSI over the last six months, which combined are valued at more than $54 million. This includes an order representing approximately one-third of a $10 million revenue expectation from JCB Construction Equipment for CPKs through 2010.
About ADSI Crew Protection Kits
ADSI CPKs are custom designed and fitted to offer a maximum amount of security for the operator. They feature windows of fully transparent armor, opaque armor siding (ATC Aberdeen-tested and approved to meet all Operation Iraqi Freedom requirements), a patent-pending combat lock, tool-less emergency egress windows, fortified door hinges and an integrated crew comfort system. The CPKs are modular and can be applied to the vehicle either during its assembly stateside or as a retrofit in theater. ADSI employs field service representatives (FSRs) that are on the ground in Afghanistan, Iraq and Kuwait to train soldiers on the proper installation techniques and offer on-going expertise and assistance. In January 2008, ADSI was awarded the "Best Development in the Field of Armored Vehicle Survivability" prize by Defense IQ, a division of IQPC (http://defenseiq.com/Defence.aspx), an organization comprised of senior decision makers from the defense, aerospace and technology sectors, and partnered with the Institute for Defense and Government Advancement.
About the U.S. Marine Corps Systems Command
The U.S. Marine Corps Systems Command (MARCORSYSCOM) is the Commandant of the Marine Corps' principal agent for acquisition and sustainment of systems and equipment used by the operating forces to accomplish their warfighting mission. The command outfits U.S. Marines with literally everything they drive, shoot and wear. Their focus is the young Marine in harms way, protecting him or her, and providing this warfighter the wherewithal to execute the mission. MARCORSYSCOM's team of professional civilian Marines and active duty Marines equips the warfighter to win. They listen, learn, research, develop, test, procure and sustain -- whatever it takes to get Marines what they need, when they need it -- efficiently and for the best value possible. The command cares deeply about each and every individual Marine and works on a daily basis with one thought in mind: to provide U.S. Marines with the systems and equipment necessary to ensure they return home to their families safe and sound.
About American Defense Systems
American Defense Systems, Inc. (ADSI) offers advanced solutions in the design, fabrication, and installation of transparent and opaque armor, security doors, windows and curtain wall systems for use by military, law enforcement, homeland defense and corporate customers. ADSI engineers also specialize in developing innovative, functional and aesthetically pleasing security applications for mobile and fixed infrastructure physical security. For more information about American Defense Systems, go to www.adsiarmor.com.
Some of the statements made by American Defense Systems, Inc. ("ADSI") in this press release, including, without limitation, statements regarding ADSI's anticipated future growth, are forward-looking in nature. ADSI intends that any forward-looking statements shall be covered by the safe harbor provisions for such statements contained in the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "may," "will," "should," "expects," "anticipates," "intends," "plans," "believes," "estimates," "predicts," "projects," "potential," "continues" and similar expressions are forward-looking statements. ADSI cautions you that forward-looking statements are not guarantees of performance. ADSI undertakes no obligation and disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements involve known and unknown risks and uncertainties that may cause ADSI's actual future results to differ materially from those projected or contemplated in the forward-looking statements. ADSI believes that these risks include, but are not limited to: ADSI's reliance on the U.S. government for a substantial amount of its sales and growth; decreases in U.S. government defense spending; ADSI's ability to contract further with the U.S. Department of Defense; ADSI's ability to comply with complex procurement laws and regulations; competition and other risks associated with the U.S. government bidding process; changes in the U.S. government's procurement practices; ADSI's ability to obtain and maintain required security clearances; ADSI's ability to realize the full amount of revenues reflected in its backlog; the redemption of ADSI's series A convertible preferred stock at the election of the holders of such stock at a time when ADSI does not have sufficient funds to consummate the redemption; restrictions on ADSI's ability to draw on its bank line of credit; ADSI's reliance on certain suppliers; and intense competition and other risks associated with the defense industry in general and the security-related defense sector in particular.
There also can be no assurance that ADSI will obtain a sufficient number of orders from JCB to generate more than $10 million in revenue or that such orders will be placed during the two year period referenced in the ADSI press release announced on November 8, 2008. Accordingly, ADSI revenues in connection with the matters referenced herein could be significantly less than the $10 million and may not be realized during such two year period.
Additional information concerning these and other important risk factors can be found under the heading "Risk Factors" in ADSI's filings with the Securities and Exchange Commission, including, without limitation, its most recent annual report on Form 10-K and quarterly report on Form 10-Q. Statements in this press release should be evaluated in light of these important factors.
| Company Contacts: Roger Ward V.P. of Marketing & Investor Relations American Defense Systems, Inc. Tel 516-390-5300, x326 Investor Relations: Ron Both Managing Director Liolios Group, Inc. Tel 949-574-3860 |
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