U.S. Air Force Selects United Industrial’s AAI Subsidiary to Provide Advanced Boresight Equipment (ABE®) for AC-130 Aircraft

HUNT VALLEY, Maryland, July 26, 2007 — The U.S. Air Force Special Operations Forces has selected an Advanced Boresight Equipment (ABE) system from AAI Corporation, a subsidiary of United Industrial Corporation (NYSE: UIC),  to boresight operational AC-130H aircraft. 

             AAI was awarded two orders, valued at $2.1 million, from Support Systems Associates, Inc., under a military acquisition program known as Special Operations Forces Support Services Contract II. Delivery of ABE equipment in the new orders is scheduled to begin next year.

             The orders call for AAI to develop a field boresight system for AC-130H aircraft that will include alignment of directional infrared countermeasures systems based on the ABE Model 310A common boresight system.            

“This award adds another important U.S. Air Force aircraft to the long list of platforms that are using our ABE system,” said Ed Buffington, vice president of AAI’s Test Systems. “We’ve already delivered boresight systems for this customer’s F-35 Lightning II Joint Strike Fighters, C-17 Globemaster III heavylifters, and C-130 Avionics Modernization Program platforms, and now we’ll provide the boresight system for AC-130H aircraft.”

             ABE is a gyro-stabilized, electro-optical system that provides alignment accuracy of weapons and sensor systems for aircraft while reducing maintenance time and costs.

 AAI has been a global leader in boresight system technologies over the past several years. The company's ABE system has been chosen by the U.S. Navy, U.S. Army, U.S. Marines, U.S. Air Force, and allied armed forces to align weapon and sensor systems of 12 types of aircraft. 

AAI Corporation designs, produces, and supports defense systems. Its products and services include unmanned aircraft systems, training and simulation systems, automated aircraft test and maintenance equipment, armament systems, logistical and engineering services, and other leading-edge technology solutions for defense needs.

 For more information, visit www.unitedindustrial.com and www.aaicorp.com.

 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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