The initial order was issued as a not-to-exceed $70 million contract for eight RQ-7A Shadow TUAV systems under the Army's fiscal 2004 full-rate production (FRP) requirement and commits nearly $35 million to production now with an additional $35 million of funding to be added later this year.

The second order, issued as a not-to-exceed $27 million contract, exercises additional options in the fiscal 2004 FRP contract for three supplemental RQ-7A systems. This order commits approximately $13 million to production now with the remainder of the funding to be added later in 2004.

The Army announced at the end of December 2003 that it was extending its full-rate production contract to AAI Corporation for the continued manufacture and delivery of RQ-7A Shadow TUAV systems. That action came a year after AAI Corporation won its initial FRP award for the design and production of the Army's first tactical UAVs.

US Army orders for Shadow systems now total 33, of which 15 have been delivered with additional deliveries extending through December 2005.

Each Shadow TUAV system consists of four air vehicles, two ground control stations, and associated components and support equipment. The work will be performed at AAI's manufacturing facility in Hunt Valley, Md.

United Industrial is a company focused on the design and production of defense and training systems. In addition to unmanned aerial vehicles, its products include training and simulation systems, automated aircraft test and maintenance equipment, and logistical/engineering services for government- owned equipment.

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