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JCB will install the CPKs on its High Mobility Engineer Excavator (HMEE), which JCB describes as a "revolutionary" combat-ready engineering vehicle with bucket and backhoe capabilities that can achieve road speeds exceeding 60 mph -- or more than twice the maximum speed of a conventional backhoe. The HMEE is part of JCB's high-speed, high mobility and logistically compatible family of military vehicles deployed around the world.
This new JCB order is in addition to a $10 million revenue expectation from JCB which ADSI announced on December 8, 2008. The expectation was based on a $230 million procurement contract JCB was awarded by the U.S. Army to equip approximately 800 JCB HMEEs at its manufacturing facility near Savannah, Georgia. Under ADSI's existing contract with JCB, CPK pricing was determined based on quantities of 200 and 400 units. At the time of the announcement, ADSI forecasted CPK orders for these HMEEs to generate more than $10 million over the course of about two years.
ADSI announced in May it has received and begun to process a JCB order that represents approximately one-third of this $10 million revenue expectation, and plans to complete the order by the third quarter of 2009. On June 4, 2009, JCB announced the first nine of these 800 JCB HMEEs were deployed to Afghanistan by the U.S. Army (see: http://www.jcbna.com/news_and_events.htm?newsID=25). According to the JCB announcement, from this point forward, at least six HMEEs will be delivered every two weeks to various military installations around the globe.
While under development, the ADSI-equipped HMEE was tested extensively by the military to ensure it exceeded their stringent standards for quality. According to Chris Saucedo, general manager for the JCB Military Products Division in North America: "The Army wanted this machine because it is unique and innovative. They have shot at it, blown it up, run it through the mud, run it through muck. And after all the rigorous testing, JCB has received the highest reliability scores ever recorded for this type of machine."
ADSI's chief executive officer, Anthony J. Piscitelli, commented: "As these orders continue to come in from JCB and others, we believe ADSI is increasingly becoming the U.S. Military standard for CPKs. This strengthens our opportunities to secure long-term recurring revenue through ongoing support, maintenance, repair, spare parts and reconditioning opportunities over the life of these vehicles. We are naturally proud to work closely with JCB, a world leader in this industry, and together protect our military service personnel with our CPKs. These have already saved many lives and sheltered our brave men and women from serious injury."
These CPK supply arrangements are a continuation of an ongoing development and supply agreement between JCB and ADSI, first announced in March 2007, to provide armor for HMEEs made to the specification of the U.S. Army Tank-Automotive and Armaments Command (TACOM).
To date, the relationship with JCB has represented more than $10 million in CPK orders to ADSI. This latest JCB order builds upon several recent U.S. Military-related awards and orders ADSI has received over the last seven months from various sources, which combined have a total value of more than $57 million.
About JCB
JCB has 18 manufacturing plants on four continents: 11 in the U.K., three in India and others in the U.S., China, Germany and Brazil. The company's dedicated military production operation will produce all 800 HMEEs to fulfill the order as well as any future orders, including a just-announced agreement to produce HMEEs for the British Army. The company employs more than 9,000 people worldwide and celebrated its 60th anniversary in 2005. The company is privately owned by the Bamford family. Since its inception JCB has never lost money nor has it ever borrowed money. Its Chairman, Sir Anthony Bamford, is the son of the company's late founder, Joseph Cyril Bamford, for whom the company is named. JCB manufactures more than 300 distinct machines including: backhoe loaders, Loadall telescopic handlers, tracked and wheeled excavators, wheeled loading shovels, articulated dump trucks, rough terrain forklifts, mini excavators, skid steers loaders, JCB Vibromax compaction equipment and ground-care equipment. For more information about JCB, go to www.jcbamericas.com.
About American Defense Systems
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 mobile and fixed infrastructure physical security. For more information about American Defense Systems, go to 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," "projects," "potential," "continues" 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 required redemption of ADSI's series A convertible preferred stock in accordance with the terms of the preferred stock and ADSI's settlement agreement with the Series A stockholders; restrictions on ADSI's ability to draw on its bank line of credit; 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.
There also can be no assurance that ADSI will obtain a sufficient number of orders from JCB to generate more than $10 million in revenue or that such orders will be placed during the two year period referenced in the ADSI press release announced on November 8, 2008. Accordingly, ADSI revenues in connection with the matters referenced herein could be significantly less than the $10 million revenue expectation and may not be realized during such two year period.
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.
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
SOURCE: American Defense Systems, Inc.
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