EASI Engineered Support Systems (MM)

Engineered Support Earns Contract for Reset of Army Generators Returned From SW Asia ST. LOUIS, May 20 /PRNewswire-FirstCall/ -- Engineered Support Systems, Inc. (NASDAQ:EASI) received a contract from the U.S. Army to reset an estimated 4,000 generator sets returned to the U.S. with American forces from deployment in Southwest Asia, including Iraq and Afghanistan. The "Time and Material" contract provides an initial funding level of $4 million, with a ceiling of $151 million over the 48-month performance period. "The contract will be performed by a team of Engineered Support's wholly- owned subsidiaries, lead by TAMSCO," said Gerald A. Potthoff, Vice Chairman and CEO of Engineered Support. "We provide an ideal capability within our organization -- in the synergy we get from TAMSCO's overall program management experience, Fermont's extensive generator production knowledge, and ESSIbuy's Web-based parts and logistics support system. We can apply this capability to help meet the Army's immediate need to return critical generator sets to fully operational condition, prior to the owning unit's next deployment," Potthoff said. The military generator sets, primarily those in the 2-kilowatt to 60-kilowatt range, have been exposed in the area of military operations to large amounts of fine desert dust and sand, and long periods of extreme heat. The dust and sand contaminants eventually compromise the generator engine, alternator, fuel tank, and most electro-mechanical parts. The prolonged heat exposure renders hard and brittle most of the rubber components in the generator set. According to Potthoff, as they return from use in military operations in Afghanistan and Iraq, the generators will be reset in a Special Test, Inspection, and Repair (STIR) program. Engineered Support's TAMSCO subsidiary will support technical inspections and "Tier 1", or unit-level, repair at multiple sites in the U.S. Engineered Support's Fermont subsidiary will support "Tier 2", or depot-level, repair work at the Fermont facilities. Engineered Support's ESSIbuy subsidiary will identify, track, and order repair parts and follow the generators through the repair process using its unique, automated Web-based parts ordering and logistics system, Potthoff explained. Engineered Support Systems, Inc. provides advanced sustainment solutions including the design, manufacture and supply of integrated military electronics, support equipment and technical and logistics services for all branches of America's armed forces and certain foreign militaries, homeland security forces and selected government and intelligence agencies. The company also produces specialized equipment and systems for commercial and industrial applications. For additional information, please visit the Company's website at http://www.engineeredsupport.com/ . Certain statements in this press release are forward looking in nature and, accordingly, are subject to risks and uncertainties. The actual results may differ materially from those described or contemplated. DATASOURCE: Engineered Support Systems, Inc. CONTACT: Larry Cox, Communications Manager of Engineered Support Systems, Inc., +1-314-553-4960, Web site: http://www.engineeredsupport.com/

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