Stewart & Stevenson secures another FMTV contract

Stewart & Stevenson Services, Inc., the premier manufacturer of medium tactical vehicles for the US Army, announced that Stewart & Stevenson Tactical Vehicle Systems, LP (TVS) has recently received contract modifications valued at approximately $625 million. These modifications call up an incremental 1,800 trucks and 1,077 trailers in base contract quantities and 2,484 trucks in option quantities for the fourth program year of the current Family of Medium Tactical Vehicle (FMTV) production contract which began April 17, 2003, and includes the sustaining support element.

The value and quantities of these contract modifications are consistent with the company's prior expectations. In-hand orders for future deliveries of vehicles and service now exceed $1.4 billion.

FMTV cargo, recovery, dump and High Mobility Artillery Rocket System (HIMARS) resupply variants will be delivered under these modifications supporting the US Army's transformation to a modular and more standardized organization. In addition, these modifications include vehicles to be delivered to the Kingdom of Jordan as a second phase of U.S. Foreign Military Sales investment. Work will be completed at the TVS design, fabrication and assembly facility in Sealy, Texas.

Dennis Dellinger, President of Stewart & Stevenson TVS, said, "It is a privilege to provide our armed forces with the workhorse vehicles of the tactical wheeled fleet. These orders are a testament to our progressive investment in our people and facility in Texas. Our recent capacity expansion provides us the ability to deliver these increased volumes in a timely and economical fashion. The TVS team has developed a standard of quality, reliability and ultimate readiness in medium tactical vehicles that is unmatched in the industry."

Stewart & Stevenson has produced over 32,000 FMTV vehicles since 1991 from its state-of-the-art facility in Sealy, Texas. The FMTV, which includes 2.5-Ton, 5-Ton and 10-Ton trucks in more than 15 active variants, is the platform of choice for the U.S. Army. In April 2005, Stewart & Stevenson increased its military product range to include the 4x4 and 6x6 Pinzgauer all-terrain vehicles recently successfully fielded in New Zealand in armored variants.

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