Ceradyne, Inc. Bags Five-Year $611.7M ID/IQ Contract

Costa Mesa, CA – Ceradyne, Inc. was awarded a five-year Indefinite Delivery/Indefinite Quantity (ID/IQ) government contract by the U.S. Army, Aberdeen Proving Ground, MD for Enhanced Side Ballistic Inserts (ESBI) with a maximum value of $611.7M.

Ceradyne which develops, manufactures and markets advanced technical ceramic products and components for defense, industrial, automotive/diesel, and consumer applications, simultaneously also received an initial delivery order for $59.8M scheduled to be shipped from July 2006 to November 2006.

David Reed, Ceradyne President of North American operations, said, "We are confident we will meet the Army's quality and delivery requirements. Under an ID/IQ government-type contract, the government is obligated to purchase only certain minimum quantities. Each delivery order, such as this initial delivery order for $59.8 million, is issued as a release against a maximum amount, which for this ID/IQ contract is $611.7 million. Therefore, our projections of follow-on business under this contract depend upon anticipated receipt of additional releases or delivery orders."

SOURCE: Ceradyne, Inc.