Engaged Capital Outlines Path to Achieve Fair Valuation at AeroVironment

  Engaged Capital Outlines Path to Achieve Fair Valuation at AeroVironment

   Cites Unrecognized Value of Impressive Product and Technology Portfolio,
 Significant Growth Prospects, and Opportunity to Improve Capital Allocation

Business Wire

NEWPORT BEACH, Calif. -- July 17, 2013

Engaged Capital, an investment firm specializing in small and mid-cap North
American equities, announced today that it beneficially owns an approximately
5.1% stake in AeroVironment, Inc. (“AeroVironment” or the “Company”) (NASDAQ:
AVAV) and outlined a path to achieve fair valuation at AeroVironment in a
filing with the U. S. Securities and Exchange Commission.

Engaged Capital highlighted its belief that AeroVironment’s stock is
undervalued and numerous opportunities exist to correct the Company’s
valuation discount through improved corporate governance, enhanced financial
disclosure, an optimal capital structure, and a stronger focus on value
creating capital allocation. Engaged Capital expressed its commitment to work
constructively with the Company’s board of directors and management to help
achieve fair valuation for AeroVironment.

“We believe that AeroVironment’s impressive product and technology portfolio,
leading market position, varied and significant growth prospects, and
excellent balance sheet should command a higher valuation. In our view,
concerns over an excess of cash in the capital structure, a lack of
granularity and specificity with respect to its growth plans, and uncertainty
surrounding its heavy exposure to the defense budget are all addressable
issues,” said Glenn W. Welling, Engaged Capital’s Principal and Chief
Investment Officer. “We are fully committed to working with the board of
directors and management of AeroVironment to implement strategic initiatives
to enhance the Company’s equity valuation and maximize value for all

A full copy of Engaged Capital’s filing can be found at:

About Engaged Capital:

Engaged Capital, LLC, (“Engaged Capital”) was established in 2012 by a group
of professionals with significant experience in activist investing in North
America and was seeded by Grosvenor Capital Management, L.P., one of the
oldest and largest global alternative investment managers. Engaged Capital is
a limited liability company owned by its principals and formed to create
long-term shareholder value by bringing an owner’s perspective to the
managements and boards of under-valued public companies. Engaged Capital
manages both a long-only and long/short North American equity fund. Engaged
Capital’s efforts and resources are dedicated to a single investment style,
“Constructive Activism” with a focus on delivering superior, long-term,
risk-adjusted returns for investors. Engaged Capital is based in Newport
Beach, California.


Engaged Capital:
Media Contacts:
ICR, Inc.
Anton Nicholas or Jason Chudoba
Phone: 203-682-8200
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