SOURCE: American Defense Systems, Inc.

American Defense Systems, Inc.

January 14, 2010 08:00 ET

ADSI Receives $9.8 Million in TACOM Orders for Crew Protection Kits, Spare Parts and Field Services

HICKSVILLE, NY--(Marketwire - 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."

The company plans to begin delivery of the CPKs by the beginning of February, with the order completed by mid-April. The order for spare parts is expected to ship before the end of March.

About ADSI Crew Protection Kits
ADSI CPKs are custom designed and fitted to offer a maximum amount of security for the operator. They feature windows of fully transparent armor, opaque armor siding (ATC 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) that are on the ground in Afghanistan, Iraq and Kuwait to train soldiers on the proper installation techniques and offer on-going expertise and assistance. In January 2008, ADSI was awarded the "Best Development in the Field of Armored Vehicle Survivability" prize by Defense IQ, a division of IQPC (, 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 U.S. Army's TACOM Life Cycle Management Command
The U.S. Army's TACOM Life Cycle Management Command (LCMC), formerly known as Tank-automotive and Armaments Command (TACOM) and headquartered in Warren, Michigan, is part of AMC, the U.S. Army Material Command. TACOM LCMC integrates Army acquisition, logistics, and technology responsibilities, authorities, and processes to enable a closer relationship among all its partner organizations that develop, acquire, and sustain the capabilities provided by ground and soldier systems around the world. Its mission is to provide and sustain mobility, lethality, and survivability for soldiers and our Allies through ground combat, automotive, marine and armaments technologies. With a workforce of approximately 3,000 personnel in Warren and over 18,000 worldwide, TACOM supports over 3,500 fielded systems and over 29,000 components that make those systems work. For more information about TACOM, visit

About 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

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 and expense reductions, 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 and ADSI's settlement agreement with the holders of 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 and quarterly report on Form 10-Q. 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 or Geoffrey Plank
    Liolios Group, Inc.
    Tel 949-574-3860
    Email Contact