AAI-Built Shadow® Tactical Unmanned Aircraft Systems Surpass 200,000 Flight Hours, Doubling Operational Milestone in Less Than 13 Months

HUNT VALLEY, Maryland, August 1, 2007 — Shadow 200 Tactical Unmanned Aircraft Systems (TUAS), designed and produced by AAI Corporation, surpassed 200,000 total flight hours in July 2007 — doubling the 100,000 flight hour milestone set in June 2006 in less than 13 months.
 

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

This hours-of-operation milestone was reached in early July, during a sortie operated by a U.S. Army unit supporting ground operations in Iraq.
 

More than 88 percent of the flight hours of Shadow 200 systems, which the U.S. Army designates as RQ-7B systems, have been in support of U.S. and allied operations in Iraq and Afghanistan. 
 

The Army selected AAI as its TUAS prime contractor in December 1999. To date, 74 complete systems have been ordered, including 296 aircraft and 148 ground control stations. Each system includes four aircraft, two ground control stations, and other components.

“The role of Shadow systems continues to grow as essential surveillance, reconnaissance, and intelligence-gathering assets supporting U.S. Army and National Guard units in Iraq and Afghanistan,” said Steven E. Reid, AAI’s vice president of unmanned aircraft systems.  

In addition, the U.S. Marine Corps recently began transitioning to Shadow systems in support of its combat units. 

Since being deployed by the U.S. Army to Iraq at the outset of military operations in early 2003 and later to Afghanistan, Shadow systems have flown more than 37,000 sorties and more than 178,000 flight hours in combat operations. Total flight operation hours include training flights and other deployments.  

In addition to the production and upgrade of Shadow systems, AAI provides performance-based logistics support and sustainment for fielded and deployed U.S. Army TUAS units.   

AAI also manufactures a number of other operationally unique unmanned aircraft systems, and the company is recognized for its design and development of advanced ground control stations and interoperable network technologies.   

            A leading example is the One System^® ground control station, designed and produced by AAI, which is compatible and interoperable with multiple unmanned aircraft systems, including Shadow, Pioneer^®, Hunter, Fire Scout, the Army’s new Extended Range/Multi-Purpose system, and AAI’s Aerosonde.  

            AAI has also developed and fielded the One System™ Remote Video Terminal, a small, mobile, intelligence-gathering system capable of directly receiving and integrating live video and telemetry data from an array of manned and unmanned aircraft systems.  

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., Aerosonde North America Incorporated, ESL Defence Limited, McTurbine Inc., and Symtx, Inc.

 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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