Army orders additional trucks from Stewart & Stevenson

HOUSTON, Texas, 28 April 2005. Stewart & Stevenson Tactical Vehicle Systems, LP (TVS) received a contract modification valued at approximately $113 million, awarded by the U.S. Army Tank automotive and Armaments Command (TACOM).

Apr 29th, 2005

HOUSTON, Texas, 28 April 2005. Stewart & Stevenson Tactical Vehicle Systems, LP (TVS) received a contract modification valued at approximately $113 million. The U.S. Army Tank automotive and Armaments Command (TACOM) awarded TVS this contract modification for option vehicles under the A1 competitive rebuy contract.

TACOM also awarded TVS a three year options contract for approximately 25,000 wheel and tire assemblies with a potential value of up to $24 million should the Army exercise the options. The work on the three-year requirements contract will be performed by the TVS AfterMarket Services group, located at the Sealy, Texas facility.

The contract modification on the A1 rebuy contract represents the exercise of options for delivery of Family of Medium Tactical Vehicles (FMTV) under the current contract awarded to TVS in April 2003. Base production under that contract provides for approximately 11,000 trucks and trailers with an option to order up to an additional 12,000 trucks and trailers over the term of the contract.

The exercised option is for the third program year of the contract and calls for a quantity of 76 trucks for the U.S. Air Force, for approximately $8 million, with deliveries primarily in 2005; 38 HIMARS vehicles, for approximately $7 million, with deliveries in 2006; and 831 trucks and 484 trailers, for approximately $98 million, with deliveries starting in October 2005 and running through 2006. The HIMARS award is for long lead items and will be supplemented with additional funding in the future.

Dennis Dellinger, President of Stewart & Stevenson TVS, said, "We appreciate the opportunity to provide spares and support equipment to the U.S. Army as well as the contract modification for option vehicles. This vote of confidence from our customer demonstrates the success of the FMTV program, and we are proud to be part of the team serving the needs of TACOM and the U.S. Armed Services."

Stewart & Stevenson has produced over 27,000 FMTV vehicles since 1991 from their state-of-the-art facility in Sealy, Texas. The FMTV, which includes 2.5-ton and 5-ton trucks in more than 15 active variants, has become the platform of choice for the U.S. Army, to include new C-130 transportable weapon system platforms such as the High Mobility Artillery Rocket System, or HIMARS. For more information, see www.ssss.com.

Stewart & Stevenson Services, Inc., founded in 1902, is a billion-dollar company that manufactures, distributes, and provides service for a wide range of industrial products and diesel-powered equipment to key industries worldwide, including power generation, defense, marine, petroleum and transportation.

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