AeroVironment Receives $15.8 Million in Orders Under a United States Army Contract for Switchblade Tactical Missile Systems

  AeroVironment Receives $15.8 Million in Orders Under a United States Army
  Contract for Switchblade Tactical Missile Systems

  *Continued acquisition of new capability in constrained budget environment
    indicates high value and potential for further demand

Business Wire

MONROVIA, Calif. -- August 28, 2013

AeroVironment, Inc. (NASDAQ:AVAV) announced that it has received a total of
$15.8 million in orders under a contract for Switchblade™ tactical missile
systems, ancillary equipment and support. The United States Army Close Combat
Weapons Systems Program Executive Office Missiles and Space (PEO MS) awarded
these contract options. AeroVironment and its strategic teammate for advanced
warheads, ATK (NYSE: ATK), will continue to work together to produce and
deliver the systems.

Switchblade is the first smart loitering weapon that delivers target
verification and pinpoint deliv ...

Switchblade is the first smart loitering weapon that delivers target
verification and pinpoint delivery (Photo: Business Wire)

The initial contract was issued on August 30, 2012 in support of the Army’s
Rapid Equipping Force (REF). The scope of work under this contract includes
operational and training rounds plus training, support and rapid delivery to
support ongoing customer operations. AeroVironment has received five separate
orders totaling $15.8 million under this contract, including the most recent
on July 29, 2013.

“Switchblade is the first smart loitering weapon, giving our troops a new
force protection capability that can deliver precision effects kilometers away
with in-flight retargeting, target verification and pinpoint delivery, all
resulting in little or no collateral effects,” said Roy Minson, AeroVironment
senior vice president and general manager of the company’s Unmanned Aircraft
Systems business segment. “AeroVironment and ATK stand ready to deliver more
Switchblade systems to protect our troops.”

“Adoption of innovative new solutions within the Department of Defense is
difficult in today’s budget constrained environment,” added Tim Conver,
AeroVironment chairman and chief executive officer. “These follow-on
procurements of Switchblade systems demonstrate our customer’s confidence in
this unique capability and the persistence required for the successful
adoption and deployment of innovative solutions.”

Conver added, “Switchblade is just one of a number of new opportunities
driving AeroVironment’s long-term growth. We are confident that our strategy
is working and that our investments in pioneering new products and
technologies are creating sustainable long-term value for our customers and
our stockholders.”

A February 2013 news article quoted the REF’s director as saying, “Theater
came in and said, ‘We need dramatically more’ ” (Switchblade systems) than
those supplied in late 2012. In March 2013 the Army released a presolicitation
notification on the Federal Business Opportunities website (www.fbo.gov) for
an intent to award a new sole source contract to AeroVironment for Switchblade
tactical missile systems. That contract has yet to be awarded.

Switchblade provides a high-precision, direct fire capability at
beyond-line-of-sight ranges in a rapidly deployable, backpackable package
weighing six pounds.

About AeroVironment’s Family of Small UAS

RQ-11B Raven®, RQ-12 Wasp AE™, RQ-20A Puma™ and Shrike VTOL™ comprise
AeroVironment’s Family of Small Unmanned Aircraft Systems. Operating with a
common ground control system (GCS), this Family of Systems provides increased
capability to the warfighter that can give ground commanders the option of
selecting the appropriate aircraft based on the type of mission to be
performed. This increased capability has the potential to provide significant
force protection and force multiplication benefits to small tactical units and
security personnel. AeroVironment provides logistics services worldwide to
ensure a consistently high level of operational readiness and provides mission
services for customers requiring only the information its small UAS produce.
AeroVironment has delivered thousands of new and replacement small unmanned
air vehicles to customers within the United States and to more than twenty
international governments.

The Qube™ small UAS is tailored to search and rescue, first response, law
enforcement and other public safety missions. Small enough to fit easily in
the trunk of a car, the Qube system can be unpacked, assembled and ready for
flight in less than five minutes, giving the operator a rapidly deployable eye
in the sky at a fraction of the cost of manned aircraft and large unmanned
aircraft.

About AeroVironment, Inc.

AeroVironment is a technology solutions provider that designs, develops,
produces, operates and supports an advanced portfolio of Unmanned Aircraft
Systems (UAS) and electric transportation solutions. Agencies of the U.S.
Department of Defense and allied military services use the company’s
electric-powered, hand-launched unmanned aircraft systems extensively to
provide situational awareness to tactical operating units through real-time,
airborne reconnaissance, surveillance and communication. Multiple government
agencies have helped to fund the development and demonstration of Global
Observer®, a hybrid-electric, stratospheric UAS designed to provide
affordable, persistent reconnaissance and communication over any location on
the globe. Switchblade™ is a tactical missile system designed to provide a
rapid, lethal, pinpoint precision strike capability with minimal collateral
damage. AeroVironment’s electric transportation solutions include a
comprehensive suite of electric vehicle (EV) charging systems, installation
and data services for consumers, automakers, utilities and government
agencies, power cycling and test systems for EV developers and industrial
electric vehicle charging systems for commercial fleets. More information
about AeroVironment is available at www.avinc.com.

About ATK

ATK is an aerospace, defense, and commercial products company with operations
in 22 states, Puerto Rico, and internationally. News and information can be
found on the Internet at www.atk.com.

Safe Harbor Statement

Certain statements in this press release may constitute "forward-looking
statements" as that term is defined in the Private Securities Litigation
Reform Act of 1995. These statements are made on the basis of current
expectations, forecasts and assumptions that involve risks and uncertainties,
including, but not limited to, economic, competitive, governmental and
technological factors outside of our control, that may cause our business,
strategy or actual results to differ materially from those expressed or
implied. Factors that could cause actual results to differ materially from the
forward-looking statements include, but are not limited to, our ability to
perform under existing contracts and obtain additional contracts; our reliance
on sales to the U.S. government; changes in the timing and/or amount of
government spending; changes in the supply and/or demand and/or prices for our
products and services; changes in the regulatory environment; the activities
of competitors; failure of the markets in which we operate to grow; failure to
expand into new markets; failure to develop new products or integrate new
technology with current products; and general economic and business conditions
in the United States and elsewhere in the world. For a further list and
description of such risks and uncertainties, see the reports we file with the
Securities and Exchange Commission, including our most recent Annual Report on
Form 10-K and Quarterly Reports on 10-Q. We do not intend, and undertake no
obligation, to update any forward-looking statements, whether as a result of
new information, future events or otherwise.

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Contact:

AeroVironment, Inc.
Steven Gitlin
+1 (626) 357-9983
pr@avinc.com
or
For AeroVironment, Inc.
Mark Boyer
+1 (310) 229-5956
mark@boyersyndicate.com
 
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