Ceradyne Receives Initial $2.3M Armor Contract for AM General M1152 Vehicle

(COSTA MESA, Calif., May 31, 2006) -- Ceradyne, Inc. (Company) (Nasdaq:CRDN) announced that it has received the initial production award for the M1152 HMMWV (HUMVEE(R)) vehicle armor components from AM General Corporation. This $2.3 million contract is for the latest-generation HUMVEE(R), which is now in production. Shipments are scheduled to begin in June 2006 and be completed in October 2006. Ceradyne designed the armor in its Wixom, Michigan, prototype facility in conjunction with AM General's development team in Livonia, Michigan. The production armor components will be manufactured in Ceradyne's recently leased 80,000 square-foot Irvine, California, armor facility. Marc King, Ceradyne vice president of armor operations, commented: "We are particularly pleased with this order, as it is our first production order for vehicle armor and complies with the 'A' kit strategy that is part of the Army's LTAS (Long Term Armor Strategy). The armor components will go into the 2-man version of AM General's latest M1152 design." King added, "We are currently performing further armor research and developing new ceramic composite armor designs for additional M1152 variations, as well as other military vehicles."

Source: Ceradyne, Inc.
Date: May 31, 2006

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