AeroVironment Awarded $2.3 Million DARPA Concept Definition Contract for TERN Medium Altitude Long Endurance Unmanned Aircraft

  AeroVironment Awarded $2.3 Million DARPA Concept Definition Contract for
  TERN Medium Altitude Long Endurance Unmanned Aircraft System Program

  *Three-phase development program aims to produce a low-cost, large-scale
    prototype vehicle

Business Wire

MONROVIA, Calif. -- November 4, 2013

AeroVironment, Inc. (NASDAQ:AVAV) announced that it has been selected by the
Defense Advanced Research Projects Agency (DARPA) to provide its
market-leading expertise in unmanned aircraft systems (UAS) toward the
development of a new category of this technology. AeroVironment will work as
the prime contractor with DARPA on the Tactically Exploited Reconnaissance
Node (TERN) Program to develop a medium-altitude, long-endurance (MALE) UAS
designed to operate from small ships to provide persistent intelligence,
surveillance, and reconnaissance (ISR) capabilities. Sierra Nevada Corporation
will subcontract to AeroVironment on the project, which is valued at $2.3
million

“We are excited to have been selected by DARPA and about what this signifies
for the future of the UAS industry,” said Roy Minson, AeroVironment senior
vice president and general manager of the company’s UAS business segment.
“TERN represents an entirely new category of UAS that has the potential to
meet the evolving needs of customers for ISR capabilities. We look forward to
applying our extensive experience in creating unique, high-quality and
battle-proven UAS solutions to develop a concept with the TERN team that
addresses DARPA’s requirements.”

“AeroVironment’s history of innovation has long been a strategic
differentiator, and we believe this award from DARPA is a testament to our
market-leading position and capabilities,” said Tim Conver, AeroVironment’s
chief executive officer and chairman. “This is a time of significant
opportunity and progress at AeroVironment as we execute on our fiscal 2014
plan. We look forward to building on our momentum, and important
collaborations like this, as we continue to address new and unique customer
challenges.”

The intent of the TERN program is to produce a low-cost, large-scale TERN
prototype vehicle over the course of three development phases that would
demonstrate automatic launch and recovery and key technologies required by a
TERN objective system. The mission performance goals for the operational TERN
system are comparable to emerging land-based MALE UAV capabilities.

The ultimate goal for a TERN objective system air vehicle is to enable
persistent ISR capabilities with payloads of 600 pounds while operating up to
900 nautical miles from a host vessel. The TERN objective system is intended
to operate from multiple ship types, including Littoral Combat Ship 2 (LCS-2)
class ships, and in elevated sea states.

The phase 1 concept definition contract was awarded on August 26, 2013. As
part of the agreement, Sierra Nevada Corporation will subcontract to
AeroVironment for ship integration.

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About AeroVironment’s Family of Small UAS
RQ-11B Raven®, RQ-12 Wasp AE™, RQ-20A Puma AE™ 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 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 Sierra Nevada Corporation
Sierra Nevada Corporation (SNC), headquartered in Sparks, Nev., is one of
America’s fastest growing private companies based on its significant expansion
and reputation for rapid, innovative, and agile technology solutions in
electronics, aerospace, avionics, space, propulsion, micro-satellite,
aircraft, communications systems and solar energy. Under the leadership of CEO
Fatih Ozmen and President Eren Ozmen, SNC employs over 2,500 people in 30
locations in 16 states. SNC’s six unique business areas are dedicated to
providing leading-edge solutions to SNC’s dynamic customer base.

SNC is also the Top Woman-Owned Federal Contractor in the United States. Over
the last 30 years under the Ozmen’s leadership, SNC has remained focused on
providing its customers the very best in diversified technologies to meet
their needs and has a strong and proven track record of success. The company
continues to focus its growth on the commercial sector through internal
advancements and outside acquisitions, including the emerging markets of
renewable energy, telemedicine, nanotechnology, cyber and net-centric
operations. For more information on SNC visit www.sncorp.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.

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