Ceramic Industry News

Ceradyne Receives $611.7 Million ESBI Order (7/11/06)

July 11, 2006
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Ceradyne, Inc. has received a new 60-month indefinite delivery/indefinite quantity (ID/IQ) government contract for enhanced side ballistic inserts (ESBI) with a maximum value of $611.7 million. Simultaneously, the company received an initial delivery order for $59.8 million, scheduled to be shipped from July to November 2006. The contract was awarded to Ceradyne by the U.S. Army, Aberdeen Proving Ground, Md.

"We are very pleased that the government's high level of confidence in Ceradyne has resulted in this major win for us," said David Reed, Ceradyne's president of North American operations. "Over the past few years, we have expanded our capacity for state-of-the-art lightweight ceramic body armor here in Costa Mesa, Calif., and our new Lexington, Ky., facility. We are confident we will meet the Army's quality and delivery requirements. In addition, this new multi-year contract provides visibility for potential future revenue. We believe we will receive our next delivery order under this contract late in 2006."

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