COSTA MESA, Calif. -- Ceradyne, Inc. announced the receipt of a $75.5 million delivery order for its lightweight ceramic body armor. This is the third delivery order received under the $461 million indefinite delivery/indefinite quantity (ID/IQ) contract announced on August 20, 2004.

Including this delivery order, orders received under this contract total approximately $179 million with approximately $282 million in unplaced options. The contract was awarded to Ceradyne by the U.S. Army Unique Missions Division, Aberdeen Proving Ground, Maryland. Joel Moskowitz, Ceradyne chief executive officer, commented: "We expect to receive additional delivery orders against this ID/IQ contract later this year and throughout the remaining 25 months of this contract.

The acquisition in 2004 of ESK, our supplier of the raw material boron carbide, coupled with additional armor capacity coming on stream in our new Lexington, Kentucky, plant and Irvine, California, facility are anticipated to allow Ceradyne to meet these as well as other projected requirements." "Under an ID/IQ type contract, the government is obligated to purchase only certain minimum quantities," Moskowitz noted. "Each delivery order is issued as a release against a maximum amount, which for this contract is $461 million. Therefore, our projections of follow-on business under this contract anticipate receipt of additional delivery orders.

Ceradyne includes delivery orders as backlog only when there is a firm delivery schedule." Moskowitz added: "Ceradyne is proud to have been awarded this contract and is confident that the Ceradyne armor systems that will be fielded in large quantities will help to save American lives." Ceradyne develops, manufactures and markets advanced technical ceramic products and components for defense, industrial, automotive/diesel and commercial applications.

Ceradyne, Inc.
01.07.2005