United Industrial’s AAI-built U.S. Army RQ-7A Shadow Tactical Unmanned Aircraft Selected for Induction into National Air and Space Museum Collection

HUNT VALLEY, Maryland, July 10, 2007 — United Industrial Corporation (NYSE: UIC) today announced that a U.S. Army RQ-7A Shadow tactical unmanned aircraft, designed and produced by its wholly owned subsidiary AAI Corporation, has been selected for induction into the renowned aircraft collection of the Smithsonian Institution's National Air and Space Museum after outstanding service in the skies over Iraq in support of U.S. and allied warfighters.

 

Aircraft number 1026 was selected for inclusion in the National Air and Space Museum collection in recognition of its role as one of the first unmanned aircraft deployed to Iraq by the U.S. Army as a tactical combat resource over the battlefield.

 

The veteran aircraft will be delivered to the museum’s Paul E. Garber Preservation, Restoration, and Storage Facility in Silver Hill, Md., where it will be readied for eventual display.

 

“It’s an incredible honor to have one of our Shadow unmanned aircraft selected for display among all of the outstanding U.S. aviation treasures in the National Air and Space Museum,” said Frederick M. Strader, president and chief executive officer of United Industrial and AAI Corporation.

 

“Ironically, Shadow unmanned aircraft number 1026 was deployed by the U.S. Army to Iraq in the 100^th anniversary year of the invention of manned flight by Orville and Wilbur Wright,” Strader added. “Now this unique aircraft will have its place in the National Air and Space Museum along with the 1903 Wright Flyer and thousands of others in the historic collection. It’s a tribute to the hard work, dedication and teamwork among our Army customer, AAI employees and suppliers.”

 

With the nickname Screamin’ Demon and fierce, fiend-like artwork painted on its nose by its Army operators, the aircraft entered Army combat service in September 2002, accomplishing its first surveillance, reconnaissance, and intelligence-gathering mission over Baghdad on April 17, 2003, a few weeks after the onset of Operation Iraqi Freedom.

 

 Screamin’ Demon achieved nearly 29 months of Iraq service during tours with the U.S. Army’s 4^th Infantry Division, Stryker Brigade Combat Team #2, and the 82^nd Airborne Division. Its last combat flight in Iraq took place on Sept. 12, 2005, totaling 124 missions and nearly 500 flight hours. The aircraft returned to the United States for scheduled overhaul and re-conditioning before taking on a new role in training support for air crews. 

Since December 1999, when the U.S. Army first selected AAI as the prime contractor for Shadow tactical unmanned aircraft systems (TUAS), the company has received production awards for 74 Shadow systems. Each system includes four aircraft, bringing to 296 the total number of production Shadow aircraft ordered. Fifty-six systems and 224 aircraft have thus far been delivered to Army and National Guard units, and additional deliveries extend through January 2009. 

First deployed to Iraq at the outset of military operations there in early 2003, Shadow aircraft have flown more than 36,000 sorties and 173,000 flight hours in support of U.S. and allied operations.   

            In addition to manufacturing Shadow systems, AAI provides support and sustainment operations for fielded and deployed U.S. Army TUAS units.  

            United Industrial Corporation designs, produces, and supports aerospace and defense systems through its wholly owned subsidiary, AAI Corporation, and AAI Corporation’s direct and indirect wholly owned subsidiaries, AAI Services Corporation, Aerosonde Pty Ltd, Aerosonde North America Incorporated, ESL Defence Limited, McTurbine Inc., and Symtx, Inc. Its high-technology products and services include unmanned aircraft systems, training and simulation systems, automated aerospace test and maintenance equipment, armament systems, aviation ground support equipment, logistical and engineering services, and maintenance, repair, and overhaul activities.           

            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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