EDO Edo Corp

EDO Corporation (NYSE: EDO) and Terma A/S have entered into a teaming agreement to jointly develop an Enhanced Smart Triple Ejector Rack (ESTER) to be used on the F-16. The ESTER program will upgrade existing TER-9 racks by adding the capability to carry three modern "smart" weapons under one pylon. "Both companies have extensive experience with high-performance military aircraft," said James M. Smith, EDO's chief executive officer. "We are combining our complementary capabilities and market strengths to address a substantial need among the worldwide F-16 community." The Royal Danish Air Force (RDAF) has already authorized testing of the ESTER capability for qualification on its F-16 Mid-Life Update (MLU). This includes system integration laboratory testing in October 2006 followed by flight testing in November. "In the light of our close relationship with the Royal Danish Air Force I am pleased that we have now entered into an agreement with EDO Corporation on development and marketing of the ESTER," said Jens Maaloe, President and CEO, Terma. The Triple Ejector Rack is a weapon-suspension unit that attaches to an aircraft's weapon pylons, enabling each pylon to carry three weapons. The TER-9 version is suitable for supersonic under-wing F-16 weapons stores. ESTER will improve the capability to carry "smart" precision-guided weapons and individually target and release each one. These include the 500 pound-class JDAM (Joint Direct Attack Munition) and EGBU-12 (Paveway) weapons, and similar stores that operate on the military standard 1760 interface. The F-16 "Fighting Falcon," which has been in production by Lockheed Martin for more than 25 years, is used in at least 24 countries. Over 4,000 aircraft have been produced, offering a substantial potential market for upgrading to ESTER. About EDO Corporation EDO Corporation is the market leader in sophisticated aircraft-armament carriage and release systems. For decades, EDO has provided such equipment for the world's dominant jet fighters, including the F-15, F-16, F/A-18, Tornado and Harrier. For the F/A-22, EDO has developed and produces the AMRAAM Vertical Eject Launcher (AVEL), which employs the company's state-of-the-art pneumatic ejection technology. EDO is developing a pneumatic launching system for the F-35 Joint Strike Fighter. The company is also developing a launching system for the Joint Common Missile. In addition to aircraft armament systems, EDO Corporation has core competencies in a wide range of critical defense areas, including: -- C4I - Command, Control, Communications, Computers, and Intelligence -- Electronic Warfare -- Undersea Warfare -- Advanced Composite Structures -- Professional and Engineering Services With headquarters in New York, EDO Corporation (www.edocorp.com) employs 3,000 people worldwide. The company was founded in 1925 and had revenues of $648 million in 2005. About Terma A/S Terma, a leading Denmark-based defense and aerospace company, is a proven developer of electronic warfare systems, reconnaissance systems, and aeronautic structures for high-performance military aircraft. These systems include the ALQ-213 Electronic Warfare Management system which is deployed on over 1,600 F-16's and other aircraft, worldwide. The business activities of Terma include products and systems for a number of civil and military applications including S/X-band radars and radar systems, naval command and control systems, air defense systems, communication systems and applications and services for space purposes and air traffic management. Terma A/S is headquartered in Lystrup, Denmark and maintains subsidiary facilities and operations in a number of European countries and in the U.S., including the wholly owned subsidiary, Terma North America, Inc. The company employs approximately 1,100 people worldwide, and realized 2005 revenues of approximately US $180 million. 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.