HUNT VALLEY, Md., Oct. 28, 2004. United Industrial Corporation announced today that its AAI Corporation subsidiary has received a $23.5 million order from the U.S. Air Force to upgrade an array of systems used to train maintenance technicians assigned to C-17 Globemaster III transport aircraft.

These sophisticated training devices enable Air Force C-17 technicians to develop journeyman-level maintenance certification skills through instructional programs, avoiding the cost of using operational aircraft.

AAI Engineering Support Inc. will design and build the upgrade components at its operation in Summerville, S.C. The upgrades will be installed on 26 C-17 trainers located at Charleston Air Force Base, S.C.; McChord Air Force Base, Wash.; McGuire Air Force Base, N.J.; and the Mississippi Air National Guard facility in Jackson, Miss.

AAI has been providing C-17 maintenance training services to the USAF for over seven years. The new award brings the company's C-17 maintenance training device program backlog to $56.6 million as of September 30, 2004.

The order is part of an ongoing program to keep the development of maintenance training systems on pace with enhanced production models of C-17 airlifters. Training devices will be modified to the Block 15 production aircraft configuration. Major system modifications in the latest order include communications open system architecture enhancements, nose landing gear strut improvements, and various flight control and landing gear system modifications.

"We are pleased to support the U.S. Air Force with cost-effective, innovative training equipment and services that benefit the uniformed men and women who provide military readiness and national security," said Frederick M. Strader, president and chief executive officer of United Industrial and AAI Corporation.

United Industrial Corporation is a company focused on the design and production of defense, training, and energy systems. Its products and services include unmanned aerial vehicle systems, training and simulation systems, automated aircraft test and maintenance equipment, and logistical/engineering services for government-owned equipment. The company also manufactures combustion equipment for biomass and refuse fuels. For more information, see www.unitedindustrial.com or www.aaicorp.com.