Ceradyne (CRDN) Wins 5-Yr, $2.37B XSAPI/ESAPI Body Armor Contract from US Army RDECOM

October 6, 2008 7:56 AM EDT

Ceradyne, Inc. (NASDAQ: CRDN) announced that it has received an ID/IQ contract for both its XSAPI and ESAPI personal ceramic armor plates from the U.S. Army RDECOM, Aberdeen Proving Grounds, Maryland. The total amount of this contract is approximately $2.37 billion and covers a period of approximately five years. Simultaneously, Ceradyne received the first delivery order for First Article Testing (FAT) valued at $943,000 scheduled for shipment by November 2008. This initial FAT order is for both XSAPI and ESAPI armor plates.

This ID/IQ contract is for both XSAPI and ESAPI armor plates (front and back). The U.S. Army can order one or both types of plates over the 5 year life of the contract. The contract provides for a minimum of 500 plates per year to a maximum of 240,000 plates per year.

Ceradyne's practice with all ID/IQ contracts is to record as backlog only the portion of the contract which has firm delivery orders issued against the total contract. In this particular case, Ceradyne initially will only book Delivery Order 0001 for $943,000 for FAT plates.

Ceradyne, Inc., together with its subsidiaries, engages in the development, manufacture, and marketing of technical ceramic products, powders, and components for defense, industrial, automotive/diesel, and commercial applications in the United States.

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