AAI’s Shadow^® 200B Civil Unmanned Aircraft  Receives First FAA Airworthiness Certificate For Operations at a Public-Use Airport                                                                                                 

HUNT VALLEY, Maryland, March 14, 2007 — An AAI Corporation Shadow® 200B unmanned aircraft system has received a special airworthiness certificate (experimental) from the Federal Aviation Administration authorizing operations at Benson Municipal Airport, a general aviation facility in southeastern Arizona.

          AAI is a wholly owned subsidiary of United Industrial Corporation (NYSE: UIC). 

The Shadow 200B’s airworthiness certificate is the first issued by the FAA permitting an unmanned aircraft to operate at a public-use airport that serves general aviation, and the first FAA certificate covering the system’s technologically sophisticated automated landing gear.     

The special airworthiness certificate was issued on February 22 in what the FAA terms an experimental category. Under the approval, the Shadow 200B unmanned aircraft can be operated for crew training, flight testing, and marketing demonstrations. This is currently the only FAA certification category available to UAS manufacturers. 

            After the aircraft received its FAA airworthiness certificate at the Benson facility, AAI personnel performed a flawless flight demonstration for the FAA team, though not part of the approval process.

                        “Securing FAA experimental certification is the first step to developing new unmanned aircraft without a military sponsor and begins to open the door for beneficial commercial applications, such as power line and pipeline inspections, homeland security, and disaster recovery,” explained Steve Reid, AAI’s vice president of unmanned aircraft systems.

             “To earn the privilege of operating our Shadow 200B at the Benson public-use venue,” Reid added, “we demonstrated to the FAA that we have processes, procedures, and technologies in place to safely operate our unmanned aircraft.”

                        In the approval process, FAA authorities reviewed design documents and inspected production facilities for the Shadow. They then evaluated a complete, operational Shadow system at the Benson airport, including the aircraft launcher, data links, ground control station, and automated landing system.

             In service with the U.S. Army in Iraq, Afghanistan, and elsewhere, the RQ-7B military version of the Shadow 200B has become well recognized for its performance in combat surveillance and reconnaissance missions.  

Though the FAA certificate puts the aircraft in an experimental category, Shadow 200 unmanned systems have been in military service for five years.  According to recent performance data, Shadow 200 aircraft have exceeded 40,000 flights and 160,000 flight hours, more than 85 percent in combat support.

 A Shadow 200B aircraft is slightly more than 11 feet long with a wingspan of 14 feet. It weighs about 375 pounds, has a top speed of 118 knots, and achieves a maximum altitude of 19,000 feet.  It can remain airborne up to seven hours.

 AAI’s high-technology products and services for aerospace and defense include unmanned aircraft systems, training and simulation systems, automated test and maintenance equipment, armament systems, aviation ground support equipment, logistical and engineering services, and maintenance, repair, and overhaul.  Company subsidiaries include AAI Services Corporation, Aerosonde Pty Ltd., ESL Defence Limited, McTurbine Inc., and Symtx, Inc.

 Except for the historical information contained herein, information set forth in this news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” and variations of such words and similar expressions that indicate future events and trends are intended to identify such forward-looking statements, which include, but are not limited to, projections of revenues, earnings, segment performance, cash flows, and contract awards. These forward-looking statements are subject to risks and uncertainties, which could cause the company’s actual results or performance to differ materially from those expressed or implied in such statements. The company makes no commitment to update any forward-looking statement or to disclose any facts, events, or circumstances after the date hereof that may affect the accuracy of any forward-looking statement. For additional information about the company and its various risk factors, please see the company’s most recent annual report on Form 10-K and other documents as filed with the Securities and Exchange Commission.   

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