EDO Edo Corp

EDO Corporation (NYSE: EDO) has been selected to design and develop the sonobuoy-launcher system for the U.S. Navy's new P-8A Multi-mission Maritime Aircraft. The contract was awarded by the Boeing Company (NYSE: BA), which was selected by the Navy as the P-8A prime contractor in June 2004. The initial contract includes system design and development, acceptance/qualification testing, documentation, and training courses, and is valued at approximately $12.7 million. It will extend for approximately 50 months and has options for additional system design and development units. "This contract is the first step of a significant long-term production opportunity," said CEO James M. Smith. "The expected U.S. sales of approximately 120 aircraft could generate more than $100 million for EDO. In addition, foreign sales are estimated at more than twice that amount. This success is a direct result of our industry-leading development of pneumatic-release technology." The new sonobuoy launcher will incorporate EDO's highly reliable pneumatic-ejection system, which offers a number of advantages over pyrotechnic-cartridge ejection technology, including reduced maintenance expenses. A sonobuoy is an electronic sensor dropped into the ocean by an antisubmarine aircraft, such as the P-8A. These sensors provide data required for aircrews to detect, localize and destroy submerged submarines. EDO has formed a strong team including an Italian supplier for the sonobuoy-launcher mechanism and control assembly. This key alliance will be beneficial in introducing the system into the European market. EDO Corporation designs and manufactures a diverse range of products for the defense industry and commercial markets, and provides related engineering and professional services. Major product groups include: Defense Electronics, Communications, Aircraft Armament, Undersea Warfare, and Integrated Composite Structures. EDO's advanced systems are at the core of the transformation to lighter, faster, and smarter defense capabilities. EDO (www.edocorp.com) was founded in 1925 and is headquartered in New York City. The company employs 2,700 people and had revenues of $536 million in 2004. Forward-Looking Statements Certain statements made in this release, including statements about future sales, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections about the company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and the following: changes in demand for the company's products and services, product mix, the timing of customer orders and deliveries, the impact of competitive products and services and pricing, and other risks discussed from time to time in the company's Securities and Exchange Commission filings and reports. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made, and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.