HUNT VALLEY, Maryland, June 22, 2006
United Industrial Corporation (NYSE: UIC) today announced that its wholly-owned subsidiary AAI Corporation has acquired privately-held Aerosonde Pty Ltd. and Aerosonde North America, Inc. in stock purchase transactions for an aggregate purchase price of $6.5 million, with additional consideration payable upon the achievement of certain milestones.
AAI is considered a premier U.S. designer, manufacturer and systems integrator of tactical unmanned aircraft systems, ground control station technologies and other innovative unmanned system capabilities.
Aerosonde Pty is a Victoria, Australia-based manufacturer and developer of unmanned aerial vehicle (UAV) systems with civil and military customers in Australia, Asia and North America and is the only commercial operator of autonomous UAVs in Australia. Aerosonde North America operates the Aerosonde UAV in support of R&D and weather forecasting requirements of U.S.-based customers, including the U.S. Air Force, the National Oceanic and Atmospheric Administration, and NASA.
?The acquisition of Aerosonde is a perfect fit for our blueprint of strategically expanding our unmanned aircraft systems capabilities to meet the growing and diversified requirements of military, homeland security, and civilian markets,? said Steven E. Reid, AAI's vice president of Unmanned Aircraft Systems.
?Aerosonde's unique capabilities fit very nicely with our own unmanned aircraft technologies as we have recently offered a candidate to meet the U.S. Marine Corps requirements for a Tier II tactical unmanned aircraft system in support of regimental and expeditionary unit operations,? Reid added.
AAI does not expect that the acquisition of Aerosonde will have any significant short-term financial impact.
Aerosonde aircraft and systems are used for military and civil surveillance, meteorology, science experiments, and military systems development, operating in challenging environments from the tropics to the Arctic. Examples include:
- During 2003, an Aerosonde UAV was used for Solomons Islands peacekeeping missions for the Australian Defence Force
- In May 2006, an Mk 4 Aerosonde UAV set an unofficial world flight-aloft endurance record of 38 hours and 48 minutes
- Last fall, an Aerosonde UAV performed a 10-hour flight for the U.S. National Oceanic and Atmospheric Administration, providing the first-ever detailed observations of a tropical storm, operating in an environment often too dangerous for manned aircraft
- Aerosonde deployed a meteorological observation aircraft to the U.S. Air Force in Guam for the Weatherscout Program, for which the UAV flew 287 hours in 30 days.
AAI's best known unmanned aircraft system is the U.S. Army's highly regarded Shadow?, which has surpassed a record milestone of 100,000 operational hours, 80 per cent in support of warfighters in Operation Iraqi Freedom.
United Industrial Corporation designs, produces, and supports defense systems. Its products and services include unmanned aircraft systems, training and simulation systems, automated aircraft test and maintenance equipment, armament systems, logistical and engineering services, and other leading-edge technology solutions for defense needs. The company also manufactures combustion equipment for biomass and refuse fuels.
For more information, visit www.unitedindustrial.com and www.aaicorp.com
UIC Contact: Stuart F. Gray (+1)-410-628-8686
Aerosonde Contact: Peter Smith (+61) 419 806 474 / (+61) 8 8359 0995
Except for the historical information contained herein, information set forth in this news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as ?expects,? ?anticipates,? ?intends,? ?plans,? ?believes,? ?estimates,? and variations of such words and similar expressions that indicate future events and trends are intended to identify such forward-looking statements, which include, but are not limited to, projections of revenues, earnings, segment performance, cash flows, and contract awards.
These forward-looking statements are subject to risks and uncertainties, including without limitation, program cancellations and changes in program funding, which could cause the company's actual results or performance to differ materially from those expressed or implied in such statements. The company makes no commitment to update any forward-looking statement or to disclose any facts, events, or circumstances after the date hereof that may affect the accuracy of any forward-looking statement.
For additional information about the company and its various risk factors, please see the company's most recent Annual Report on Form 10-K and other documents as filed with the Securities and Exchange Commission.
