General Atomics Aeronautical Systems and its Team Warrior Partners Awarded Major U.S. Army Contract

General Atomics Aeronautical Systems and its Team Warrior Partners Awarded Major U.S. Army Contract

FOR IMMEDIATE RELEASE

Aug 10, 2005

First Phase of $1 Billion Multi-year ER/MP Program Worth $214 Million

SAN DIEGO – August 10, 2005 -- General Atomics Aeronautical Systems, Inc. (GA-ASI), a leading manufacturer of unmanned aircraft and high resolution surveillance and radar imaging systems, along with its "Team Warrior" partners AAI Corporation and SPARTA, Inc., today announced that it has been awarded the Systems Development and Demonstration (SDD) phase of a multi-year contract for the U.S. Army’s Extended Range Multi-Purpose (ER/MP) UAV Program.

"We are very pleased that the U.S. Army has recognized the high-value solution that Team Warrior brings to the ER/MP Program, validating the strengths of the team’s unique, yet complementary expertise," said Thomas J. Cassidy, Jr., president, Aircraft Systems Group, General Atomics Aeronautical Systems, Inc. "The performance of our combat proven aircraft systems, combined with the dedicated professionalism of the entire Warrior team, were key to our success, and we look forward to growing our long-standing relationship with the Army in support of national security interests."

The SDD ER/MP contract award follows the successful completion of a three-week Systems Capabilities Demonstration (SCD) held at Fort Huachuca, AZ, in late February/early March in which Team Warrior completed all required flight test objectives in record time, flying a minimum number of hours to meet all demonstration objectives. Fulfillment of the initial contract is expected to conclude in mid-2009 and includes the delivery and test of 17 WarriorTM aircraft from GA-ASI, seven One SystemTM ground stations from AAI, and logistics support from SPARTA.

Designed to provide Division and Corps commanders with long-range, armed unmanned aircraft surveillance and attack capability, the Team Warrior solution utilizes proven U.S. military systems and processes to reduce financial, technical and operational risks to the customer. GA-ASI’s vast design, development, operational and combat experience in unmanned aircraft systems -- such as Predator®, Army IGNAT®-ER and Predator B -- along with AAI’s combat proven Army One System ground control equipment and Sparta’s extensive experience in logistics support services, provides the U.S. Army with a low-risk, high value solution to meet requirements for persistent ISR and tactical strike operations.

Warrior, a derivative of the combat-proven Predator, fully meets the U.S. Army’s requirement for a low-risk developmental solution. The aircraft will provide long-endurance surveillance, communications relay, and weapons delivery missions, with double the weapons capacity of Predator. Featuring a Heavy Fuel Engine (HFE) for increased supportability in the field, Warrior can fly above 25,000 feet on jet or diesel fuel with increased horsepower and significantly improved fuel efficiency. The HFE power plant also reduces maintenance costs, offers increased service life, and greatly simplifies logistics by ensuring a more readily available fuel source.

About the Companies

General Atomics Aeronautical Systems, Inc. (GA-ASI), an affiliate of privately held General Atomics, provides comprehensive solutions for military and commercial applications worldwide.

The company’s Aircraft Systems Group is a leading designer and manufacturer of proven, reliable remotely operated aircraft (ROA) systems, including the Predator UAV series, and provides pilot training and support services for UAV field operations. The Reconnaissance Systems Group designs, manufactures and integrates the Magnum (Raptor View) high-resolution EO/IR and Lynx® SAR/GMTI sensor systems for both manned and unmanned aircraft. Leading the industry to new levels of performance, reliability, and operational capability since its establishment in 1993, the company has expanded the acceptance and application of unmanned aircraft systems within the United States and among allied forces around the world. GA-ASI is committed to providing immediately deployable transformational technology for military operations and weapons systems, as well as civil missions. For more information, please visit www.uav.com.

AAI Corporation, a wholly owned subsidiary of United Industrial Corporation (UIC), is focused on the design, production and support of defense systems. AAI produces the Army's RQ-7 Shadow tactical unmanned aerial vehicle. Shadow TUAVs have flown more than 39,000 combat hours in Operation Iraqi Freedom. In addition to unmanned aerial vehicle systems, AAI's products include training and simulation systems, automated aircraft test and maintenance equipment, armament systems, logistical and engineering services, and other leading-edge technology solutions for defense needs. The company is headquartered in Hunt Valley, Maryland. For more information, visit www.aaicorp.com or www.unitedindustrial.com.

SPARTA, Inc. is an employee-owned company headquartered in Lake Forest, California, with 20 offices located throughout the United States. As a systems engineering and advanced technology company with over 24 years of nationally recognized achievements, SPARTA is dedicated to serving the nation’s needs in the areas of strategic defensive and offensive systems, tactical weapons systems, space systems and management information systems. SPARTA’s strengths in system engineering, analysis, simulation, technology development, engineering services and logistics support made SPARTA an ideal teammate for logistics and supportability for the Extended Range Multi-Purpose Program. For more information, visit www.sparta.com.

Warrior is a trademark and Predator, I-GNAT and Lynx are registered trademarks of General Atomics Aeronautical Systems, Inc. One System is a trademark of AAI Corporation.

Additional information on the Team Warrior teaming companies may be obtained by contacting the following:

Kimberly Kasitz

Public Relations Manager

General Atomics Aeronautical Systems, Inc.

+1.858.455.2294

kimberly.kasitz@uav.com

Sharon Corona

AAI Communications

+1 (410) 628-3184

corona@aaicorp.com

Jerry Fabian

SPARTA, Inc.

+1 (949) 583-2305

jerry.fabian@sparta.com