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Engineered Support receives $4.5 million Coast Guard contract

ST. LOUIS, July 9, 2004. Engineered Support Systems, Inc.'s wholly-owned subsidiary Technical and Management Services Corporation (TAMSCO) of Calverton, Md., has been awarded a $4.5 million, 24-month contract with a period of performance from July 1, 2004 to June 30, 2006 by the U.S. Coast Guard.

This award was issued under the U.S. Army Communications and Electronics Command's (CECOM) Rapid Response (R2) contract.

Under this contract, TAMSCO will continue to support the Coast Guard Aircraft Repair and Supply Center (ARSC), Elizabeth City, N.C. with support in the primary mission areas of: (1) depot level maintenance, overhauls, major repair, and modification of aircraft and associated aeronautical equipment; (2) procurement, storage, stocking of inventory, control accounting, issue, and shipping of supply parts and aeronautical equipment; (3) preservation, storage, and maintenance of replacement aircraft parts, and (4) technical engineering support in aeronautical, avionics, and technical publications fields.

In addition, to provide a solid platform for sustained growth in future Coast Guard and Department of Defense aviation requirements, the Company will announce at a ground-breaking ceremony to occur later today its plans for construction of an 110,000 sq. ft. heavy lift/fixed wing maintenance facility adjacent to the Elizabeth City-Pasquotank County Regional Airport.

The facility, at an estimated cost of $8-$9 million, will be capable of housing four C-130 Hercules Aircraft and will contain back shop/office spaces and an adjacent aircraft apron. The project is being done in partnership with several local, state, and federal agencies, which are providing financial support in the form of grants for infrastructure improvements.

"TAMSCO will apply the expertise gained through its nearly 20 years of continuous support of Coast Guard aviation programs in delivering reliable, affordable, high quality aviation products and services to the complete satisfaction of our ARSC customer. In conjunction this initiative, we expect to add more than 100 jobs to our current Elizabeth City workforce of 35 employees with plans for a much more expanded presence in the coming years. We look forward to enhancing the long and successful relationship between Engineered Support Systems, TAMSCO, the regional economy and our Coast Guard customer as we support America's homeland security capabilities," commented Jerry Daniels, vice chairman and CEO of Engineered Support Systems.

Engineered Support Systems, Inc. is a diversified supplier of high-tech, integrated military electronics, support equipment and logistics services for all branches of America's armed forces and certain foreign militaries. The Company also serves a variety of commercial customers.

For more information, see www.engineeredsupport.com.




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