SOURCE: American Defense Systems, Inc.

American Defense Systems, Inc.

June 21, 2010 08:30 ET

ADSI Receives $50 Million U.S. Navy MAC IDIQ Award for Crew Protection Kits

HICKSVILLE, NY--(Marketwire - June 21, 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 received a Multiple Award Contract (MAC), Indefinite Delivery Indefinite Quantity (IDIQ) Award from the Naval Facilities Expeditionary Logistics Center (NFELC) of Port Hueneme, California.

ADSI and two other companies were selected among seven proposals received by the NFELC to submit bids under the MAC Award. The award calls for up-armoring solutions of civil engineer support equipment to be provided to the NFELC over the course of five years. The maximum cumulative dollar value of the MAC award is $50 million, with the base year and each of the four option years limited to $10 million per year. Information about the award (#N62583-10-D-0323) can be found on the U.S. Department of Defense website at http://www.defense.gov/contracts/contract.aspx?contractid=4247.

"This award provides a major opportunity for ADSI to build upon the close relationship that we've developed with the U.S. Armed Forces over many years," said ADSI's chief executive officer, Anthony J. Piscitelli. "It also represents one of the largest military contract vehicles we've received to-date."

"While it requires us to be competitive in order to win the business allotted under the award," continued Piscitelli, "the field has been significantly narrowed, and we're confident it will generate significant revenues for us over time. We are especially proud that we have been granted this continued responsibility of protecting our brave military service personnel around the world with our state-of-the-art crew protection kits ('CPKs'), which we believe have already saved many lives."

The company's previous largest award was a three-year, $30 million firm fixed price, indefinite delivery, indefinite quantity, sole-source contract received in April 2009 to provide CPKs and spare parts for various types of construction vehicles used in U.S. Marine Corps military operations.

About ADSI Crew Protection Kits
ADSI's Add-on-Armor (AoA) Crew Protection Kits (CPKs) are custom-fitted for U.S. Military construction vehicles and designed to provide the maximum level of security for the operator. They feature windows of fully transparent armor, opaque armor siding (Aberdeen-tested and approved to meet all Operation Iraqi Freedom requirements), a patent-pending combat lock, tool-less emergency egress windows, fortified door hinges and an integrated crew comfort system. The CPKs are modular and can be applied to the vehicle either during its assembly stateside or as a retrofit in theater. ADSI employs Field Service Representatives (FSRs) on the ground in Afghanistan, Iraq and Kuwait to train soldiers on the proper installation techniques and offer on-going expertise and assistance. ADSI was awarded the "Best Development in the Field of Armored Vehicle Survivability" prize in January 2008 by Defense IQ, a division of IQPC (http://defenseiq.com/), an organization comprised of senior decision makers from the defense, aerospace and technology sectors, and partnered with the Institute for Defense and Government Advancement.

About The Naval Facilities Expeditionary Logistics Center
The Naval Facilities Expeditionary Logistics Center (NFELC) enables the Expeditionary Warfighter to accomplish their mission through Table of Allowance (TOA) generation, fulfillment, delivery, and sustainment; and through emergent operational logistics support. NFELC supports the Navy Shore Establishment through acquisition, registration, and licensing of Civil Engineer Support Equipment (CESE) and Civil Engineer End Items (CEEI). NFELC provides the Ship and Shore Domain with responsive, mobile, contingency utility support.

About American Defense Systems, Inc.
American Defense Systems, Inc. ("ADSI") offers advanced solutions in the design, fabrication, and installation of transparent and opaque armor, security doors, windows and curtain wall systems for use by military, law enforcement, homeland defense and corporate customers. ADSI engineers also specialize in developing innovative, functional and aesthetically pleasing security applications for the mobile and fixed infrastructure physical security industry. For more information, visit the ADSI corporate Web site at www.adsiarmor.com.

Some of the statements made by American Defense Systems, Inc. ("ADSI") in this press release, including, without limitation, statements regarding ADSI's anticipated future growth, are forward-looking in nature. ADSI intends that any forward-looking statements shall be covered by the safe harbor provisions for such statements contained in the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "may," "will," "should," "expects," "anticipates," "intends," "plans," "believes," "estimates," "predicts," "potential," "continues," "projects" and similar expressions are forward-looking statements. ADSI cautions you that forward-looking statements are not guarantees of performance. ADSI undertakes no obligation and disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements involve known and unknown risks and uncertainties that may cause ADSI's actual future results to differ materially from those projected or contemplated in the forward-looking statements. ADSI believes that these risks include, but are not limited to: ADSI's reliance on the U.S. government for a substantial amount of its sales and growth; decreases in U.S. government defense spending; ADSI's ability to contract further with the U.S. Department of Defense; ADSI's ability to comply with complex procurement laws and regulations; competition and other risks associated with the U.S. government bidding process; changes in the U.S. government's procurement practices; ADSI's ability to obtain and maintain required security clearances; ADSI's ability to realize the full amount of revenues reflected in its backlog; ADSI's ability to finance the redemption of ADSI's series A convertible preferred stock in accordance with the terms of such stock; ADSI's reliance on certain suppliers; and intense competition and other risks associated with the defense industry in general and the security-related defense sector in particular.

Additional information concerning these and other important risk factors can be found under the heading "Risk Factors" in ADSI's filings with the Securities and Exchange Commission, including, without limitation, its most recent annual report on Form 10-K. Statements in this press release should be evaluated in light of these important factors.

Contact Information

  • Company Contacts:
    Roger Ward
    V.P. of Marketing & Investor Relations
    American Defense Systems, Inc.
    Tel 516-390-5300, x326
    Email Contact

    Investor Relations:
    Ron Both
    Managing Director
    Liolios Group, Inc.
    Tel 949-574-3860
    Email Contact