AAI Services to produce additional aircraft maintenance trainer systems in support of C-17

United Industrial Corporation (NYSE:UIC) announced today that its wholly owned subsidiary AAI Services Corporation has been awarded a $30.2 million contract by the U.S. Air Force to produce two additional aircraft maintenance trainer systems in support of C-17 Globemaster III fleet readiness.

The contract also has an option for an aircraft engine maintenance trainer with a potential value of $14.9 million.

Under the award, finished systems will be delivered to Elmendorf Air Force Base in Alaska in October 2009 and Hickam Air Force Base in Hawaii in February 2010. AAI Services will build the systems in its Charleston, S.C., facility.

AAI Services previously provided C-17 maintenance training devices to Air Force transport squadrons at Charleston Air Force Base in South Carolina, McGuire Air Force Base in New Jersey, and McChord Air Force Base in Washington. An Air National Guard unit at Jackson, Mississippi, is also equipped with C-17 maintenance trainers from AAI Services.

The maintenance training devices enable Air Force C-17 technicians to develop journeyman-level certification skills through instructional programs conducted on high-fidelity, state-of-the-art simulators, avoiding the cost of using operational aircraft.

“The C-17 airlifter fleet operates intense military and humanitarian missions into unimproved airfields and for long periods away from home base maintenance,” said AAI Services Corporation President Paul Lavin. “We’re proud that the Air Force maintenance crews who ensure a high C-17 mission capability rate hone their skills on the sophisticated simulators that we build.”

“Air Force C-17 base operations are expanding, and this contract for additional maintenance training simulators from AAI acknowledges the integral value that these systems contribute to readiness,” Lavin added. “We’re pleased to be a partner on the incredible C-17 team.”

In addition to C-17 trainers, AAI Services manufactures maintenance training systems for U.S. Air Force F-22 Raptor fighter aircraft.

AAI Services Corporation is a wholly owned subsidiary of AAI Corporation, which is a wholly owned subsidiary of United Industrial Corporation.

United Industrial Corporation designs, produces, and supports aerospace and defense systems through its wholly owned subsidiaries AAI Corporation, AAI Services Corporation, Aerosonde Pty Ltd, ESL Defence Limited, McTurbine Inc. and Symtx, Inc. 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 aerospace and defense needs. The company also manufactures combustion equipment for biomass and refuse fuels through its wholly owned subsidiary Detroit Stoker Company.

For more information, visit www.unitedindustrial.com/ and www.aaicorp.com/.

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 reports as filed with the Securities and Exchange Commission.

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Source: United Industrial Corporation

CONTACT: IR Contact, Stuart F. Gray, +1-410-628-8686, [email protected],
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for United Industrial Corporation