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Kaman Awarded Joint Programmable Fuze Contract Options

Written by thomas · Filed Under Aeronautics News 

July 1, 2009

thomas

BLOOMFIELD, Conn., July 1 /PRNewswire-FirstCall/ — (Nasdaq: KAMN) Kaman Corporation announced today that its Precision Products operation has entered into a contract modification with the United States Air Force (USAF) for the award of Options 6, 7 and 8 under the company’s multi-option Joint Programmable Fuze (JPF) contract. The modification provides new prices and quantities for the next three option buys upon exercise and updates the original contract negotiated in 1997.

The new value of the next option (Option 6) of the contract is approximately $53 million. Deliveries are expected to begin in the second quarter of 2010. Upon exercise, the value of Options 7 and 8 will depend on the quantity options selected by the USAF, add-ons, foreign military orders and future funding.

“This contract modification award is the result of our efforts to attain profitability on sales of the JPF to the Air Force,” said Neal J. Keating, Chairman, President and Chief Executive Officer. Jim Larwood, Division President, Precision Products added, “We expect sales to the USAF under this revised contract to be profitable and support our long-term strategy and expectations for the Precision Products business.” Keating concluded, “The successful negotiation of this contract modification has been a long term goal for Jim and his team and we are very pleased with their efforts and the result.”

The JPF is an electro-mechanical bomb safing and arming device for the USAF. The JPF allows the settings of a weapon to be programmed in flight and is the current bomb fuze of choice of the USAF. In addition to the USAF, multiple nations currently utilize the JPF and further international market growth is planned. Kaman produces more than 2,000 JPFs per month at facilities in Orlando, Florida and Middletown, Connecticut.

Safe Harbor Statement

All statements, other than statements of historical fact, included in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based upon current expectations and are subject to a number of risks, uncertainties and assumptions, which are more fully described in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other reports filed with the Securities and Exchange Commission. These risks, uncertainties and assumptions could cause actual results to differ materially from those described in the forward-looking statements. The Company assumes no obligation and expressly disclaims any duty to update the information contained herein, except as required by law.

About Kaman Corporation

Kaman Corp., headquartered in Bloomfield, Conn. conducts business in the aerospace and industrial distribution markets. The company produces and/or markets widely used proprietary aircraft bearings and components; complex metallic and composite aerostructures for commercial, military and general aviation fixed and rotary wing aircraft; safing and arming solutions for missile and bomb systems for the U.S. and allied militaries; subcontract helicopter work; and support for the company’s SH-2G Super Seasprite maritime helicopters and K-MAX medium-to-heavy lift helicopters. Kaman is also one of the nation’s leading industrial distribution companies for power transmission, motion control, material handling and electrical components from nearly two hundred locations throughout North America.

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