EDO Edo Corp

EDO Corporation (NYSE: EDO) has been selected by the Boeing Company (NYSE: BA) to design and develop pneumatic ejector bomb-rack units for the U.S. Navy's new P-8A Multi-mission Maritime Aircraft. Boeing is the prime contractor for the P-8A aircraft. EDO has received a "letter" contract authorizing work to begin while the final contract is being negotiated. It is expected that a definitive, fixed-price contract will be executed by December for an amount not to exceed $7.2 million. The initial contract will include system design and development, qualification testing, documentation, and training. It has options for additional system design and development units. This award is in addition to the previously announced $12.7 million contract for the P-8A sonobuoy-launcher system that will be used on anti-submarine missions. "The pneumatic ejector bomb rack gives EDO another substantial, mission-critical role in the success of the P-8A MMA," said CEO James M. Smith. "Together with the sonobuoy launcher, these two systems represent an opportunity for more than $200 million over the production anticipated for the U.S. Navy. This success is a direct result of our industry-leading development of pneumatic-release technology." The U.S. Navy plans to purchase 108 aircraft. Given the history of maritime patrol mission utilization, foreign sales could increase that amount. 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 Systems, 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 2,800 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.