EASI Engineered Support Systems (MM)

ST. LOUIS, Oct. 10 /PRNewswire-FirstCall/ -- Engineered Support Systems, Inc. (NASDAQ:EASI) today announced that, as it previously forecasted, its U.S. Air Force customer has lifted the stop work order imposed on the FY04 contract modification for production of Deployable Power Generation and Distribution System (DPGDS) primary Power Units (PUs). With the previous lifting of the stop work orders on FY03 PU orders, the customer has now lifted all stop work orders on PU production. Last week, the Air Force lifted the stop work order on 61 PUs ordered by the Air Force in FY04. The company announced on Sept. 2 that the stop work order was lifted on 30 PUs ordered in FY03, and in late September the Air Force lifted the stop work orders on four PUs ordered for the Army in FY04. The lifting of the stop work order follows the company's completion in August of a five-week reliability audit conducted under operational conditions, involving four DPGDS PUs. The audit was completed successfully, without any significant issues adversely affecting reliable operation of the units, according to Engineered Support Vice Chairman and CEO Gerald A. Potthoff. The system maintained over 99 percent mission availability during the testing -- well above the Air Force standards, and in 33 days of testing the power plant was off-line for less than two minutes, Potthoff explained. "We expect that, having resolved the previous reliability issues, the successful completion of the recent Reliability Audit, and the lifting of stop-work orders, and with the Air Force's continuing evaluation of its expeditionary power requirements, new production orders from the Air Force customer can now be received and the DPGDS program will move forward into a very bright future," Potthoff said. "We strongly believe that the DPGDS provides an advanced, state of the art power generation capability for use in providing prime power under austere conditions. Not only are we gratified to see DPGDS power units available for our military units and members serving overseas in the Global War on Terror, we're also pleased to be able to make our power and other advanced sustainment solutions available to our government customers for disaster relief and first responder roles." "Once again, I would like to express my appreciation to our valued Air Force and Army customers, our partner Caterpillar, our key suppliers and, most importantly our many ESSI employees, for their strong support during this entire process," the CEO said. Engineered Support Systems, Inc. provides advanced sustainment solutions including the design, manufacture and supply of integrated military electronics, support equipment and technical and logistics services for all branches of America's armed forces and certain foreign militaries, homeland security forces and selected government and intelligence agencies. The company also produces specialized equipment and systems for commercial and industrial applications. For additional information, please visit the Company's website at http://www.engineeredsupport.com/ . SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This press release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on management's beliefs and assumptions, current expectations, estimates and projections. Such statements, including statements relating to Engineered Support Systems' expectations for future financial performance, are not considered historical facts and are considered forward-looking statements under the federal securities laws. These statements may contain words such as "believes," "anticipates," "plans," "expects," "intends," "estimates" or similar expressions. These statements are not guarantees of future performance and are subject to risks, uncertainties and other important factors that could cause actual performance or achievements to differ materially from those expressed or implied by these forward-looking statements and include, without limitation, the decision of any of the Company's key customers, including the U.S. government, to reduce or terminate orders with the Company; cutbacks in defense spending by the U.S. government; increased competition in the Company's markets; integration of completed acquisitions; completion of the Company's previously announced merger with DRS Technologies, Inc.; and other risks discussed in the Company's reports filed with the Securities and Exchange Commission from time to time. Given these uncertainties, you should not rely on forward-looking statements. Such forward-looking statements speak only as of the date on which they were made, and Engineered Support undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. DATASOURCE: Engineered Support Systems, Inc. CONTACT: Larry Cox, Communications Mgr., of Engineered Support Systems, +1-314-553-4960, Web site: http://www.engineeredsupport.com/

Copyright