ADSI Receives $9.8 M for Crew Protection Kits, Spare Parts and Field Services

(Hicksville, NY., January 14, 2010) -- American Defense Systems, Inc. (ADSI) (NYSE Amex: EAG), a provider of advanced transparent and opaque armor, architectural hardening and security products for Defense and Homeland Security, has recently received several orders from the U.S. Army's TACOM Life Cycle Management Command (LCMC) for new ADSI crew protection kits (CPKs), spare parts and field services totaling approximately $9.8 million.

The orders were receive under the company's existing TACOM IDIQ contract (#W56HZV-05-D-0382), which was expanded to accommodate the new orders. Of these orders, $7.0 million is for CPKs to be installed on a variety of military construction vehicles. An order of approximately $859,000 in spare parts will be used to repair and recondition CPKs on vehicles currently deployed by the U.S. Marine Corps. ADSI's Field Service Representatives (FSRs) in Kuwait and Afghanistan are expected to assist in the installation of the CPKs and spare parts, which is provided through an order of $1.9 million in field services through the end of the year.


"The 'nation-building' activities in the middle-east continues to create demand for armored Civil Engineering/Materials Handling Equipment (CE/MHE) to build and repair roads, buildings and critical infrastructure," said ADSI's chief executive officer, Anthony J. Piscitelli. "We believe this series of recent orders from TACOM reflects this trend, and furthers our critical mission of protecting our military service personnel as they perform their service to our country."

The company estimates that only 6% of the U.S. Army's 10,000 CE/MHE in service are up-armored, with about 96% of these up-armored by ADSI. The Army's stated goal is to up-armor at least 40% of its CE/MHE.

According to Piscitelli, "As ADSI's installed base of CPKs increases, we expect the demand for spare parts and maintenance -- which represents a higher margin, recurring revenue stream -- will become a larger part of our business. Given our leadership in this arena, we believe we are well positioned to win new contracts from not only the U.S. Military, but also from foreign governments and militaries also looking to protect their construction personnel working in hostile environments."

Source : American Defense Systems Inc.