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

August 28, 2013

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

MONROVIA, Calif., Aug. 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.

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, Inc. (AV)

AeroVironment (NASDAQ: AVAV) is a global leader in intelligent multi-domain robotic systems, uncrewed aircraft and ground systems, sensors, software analytics, and connectivity. Headquartered in Arlington, Virginia, AeroVironment delivers actionable intelligence so our customers can proceed with certainty. For more information, visit www.avinc.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; 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. 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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