MSA Secures $28 Million Army Contract for Protective Helmets
Award Ensures Continued Production of Helmets at MSA into 2007
PITTSBURGH, Aug. 25 /PRNewswire-FirstCall/ -- Mine Safety Appliances Company (NYSE: MSA) announced today that it has secured a $27.7 million contract from the U.S. Army to produce 120,000 Advanced Combat Helmets (ACH), including spare part kits, ensuring continued production of the helmets at MSA into 2007. It represents the first purchase of helmets under a five-year indefinite delivery/indefinite quantity contract. The award follows a $25.7 million helmet contract, announced last May, which provides for ACH production through February 2006.
This latest award is part of a large contractual bid issued by the U.S. Army in late 2004 for approximately 880,000 protective helmets. In receiving the award, MSA was selected as one of three suppliers to provide an equal number of helmets under the first year buy of the contractual bid. This equal split of awards has been an element of the military's purchasing strategy for this procurement since it was issued by the Army in 2004. Since November of 2003, MSA has secured six contracts from the Army totaling more than $155 million and covering production of more than 550,000 helmets.
"We're very pleased to get this news following a very competitive, exhaustive and long bid process," said John T. Ryan III, MSA chairman and CEO. With production under the new contract scheduled to begin in March 2006, Mr. Ryan noted the award will enable the company to continue ACH production over the long term, albeit at a decreased production level once the new contract takes effect.
"While we would certainly prefer to be the exclusive supplier of ballistic helmets to the Army, we realize that was unlikely to happen with this latest bid, given the military's desire to have multiple suppliers and not limit production to an exclusive manufacturer," Mr. Ryan said. "From our perspective, however, the decrease in ACH production will free up some capacity for us to begin serving the law enforcement market with ballistic helmets that have been proven on the field of battle. We see this as positive news for police officers who have been inquiring about the availability of our helmet since it was first introduced in 2003."
Mr. Ryan added that MSA will have available capacity to produce additional helmets should the Army desire, at a later date, to accelerate delivery or issue a new order for additional Advanced Combat Helmets.
The ACH incorporates a new, lightweight design that offers soldiers advanced ballistic protection with greater comfort and stability. The ACH has been credited with saving several lives in military actions in Iraq and Afghanistan.
Established in 1914, MSA is a global leader in the development, manufacture and supply of sophisticated safety products that protect people's health and safety. Sophisticated safety products typically integrate any combination of electronics, mechanical systems and advanced materials to protect users against hazardous or life-threatening situations. The company's comprehensive line of products is used by workers around the world in the fire service, homeland security, construction and other industries, as well as the military. Principal products include self-contained breathing apparatus, gas masks, gas detection instruments, head protection, respirators and thermal imaging cameras. The company also provides a broad range of consumer and contractor safety products through retail channels. These products are marketed and sold under the MSA Safety Works brand. MSA has annual sales of more than $850 million, manufacturing operations throughout the United States and Europe, and more than 30 international locations. Additional information is available on the company's Web site at www.msanet.com.
SOURCE MSA
CONTACT: Mark Deasy of MSA, +1-412-967-3357
