Army to Develop Business Plan for Dual Use of Detonator Facility.

MIDDLETOWN, Iowa--(BUSINESS WIRE)--Nov. 9, 1999--

Iowa Army Ammunition Plant-- The United States Army Armament Research and Development Engineering Center (ARDEC) has awarded a contract to Pendulum Management Company LLC (PMC) to develop a business plan for the dual use of an Army detonator manufacturing facility (Line 4-A) at the Iowa Army Ammunition Plant. PMC was awarded the contract to prepare the plan for the Army and it will use American Ordnance LLC, contract operator for the Iowa Army Ammunition Plant, to assist.

Line 4-A is a 115,000 square foot manufacturing and office complex situated on 20 acres within the 19,000 acre Iowa Army Ammunition Plant in Middletown, Iowa, located near Burlington, Iowa. The planning initiative will focus on using the facility, originally built to manufacture detonators for the Army and subsequently used by ICI Americas Inc., to manufacture airbag igniters. The objective will be to determine the requirements necessary to manufacture both military and commercial items within the same facility. Dual use of the facility and equipment would be advantageous to both the Army and the commercial interests. Line 4-A is currently idle but is in excellent condition and contains equipment which would support both military and commercial operations.

Mr. Jim Burgin, Business Manager of PMC said, "The Army's purpose for this initiative is to help the Army more efficiently maintain its production base, while experiencing a shrinking budget. The initiative also presents excellent opportunities for commercial companies to gain access to low cost facilities, infrastructure and equipment to start or expand a business."

Mr. Pete Richardson, Facility Use Manager at American Ordnance, stated, "The initiative is welcomed and represents a renewed interest by the Army to minimize cost while increasing flexibility, readiness and customer presence. As military requirements decrease, dual use of these facilities is a viable technique to help preserve the military manufacturing base while also allowing new opportunities for the commercial sector."

The plan will also look at how to maintain a manufacturing base for critical items and will explore other incentives such as the U.S. Army's Armament Retooling and Manufacturing Support Initiative's (ARMS) Guaranteed Loan Program as well as other State and Federal Incentives.

PMC is an asset management company dedicated to maximizing the value of facility assets and creation of value through new approaches to facility management. American Ordnance LLC has a facility use contract allowing the dual use of the government-owned facility in Southeast Iowa at Middletown.

For more information on the initiative and the site, contact Mr. Jim Burgin, Pendulum Management Company LLC at 319/753-7047, e-mail: [e-mail] or http://www.iowasite.com.