United Defense Signs Contract With Canadian Company.

SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 16, 1996--United Defense has signed an $18.5 million engineering contract with a follow-on production contract that potentially could be worth $350 million with DEW Engineering and Development Limited, a Canadian company based in Ottawa, Ontario.

The contract calls for 750 vehicles of the Canadian armed forces to be upgraded to Armored Personnel Carrier M113A3 and Mobile Tactical Vehicle Light (MTVL) configurations.

The engineering phase will be performed in San Jose and is expected to take three years with production of the vehicles lasting through 2006. Manufacturing is scheduled to be done in Canada.

"We chose United Defense because they are the original equipment designers and producers of the M113 vehicle," said Howie Byer, vice president of DEW.

The M113 is one of the most widely used combat vehicles in the world. It has been greatly improved to meet battlefield challenges now and into the future. The MTVL is the latest derivative of the M113 line of armored carriers and is converted from M113A2 chassis. It has 30 percent more under-armor volume, 70 percent more payload capacity and a 50 percent increase in cross-country mobility.

The M113A3 variant and the MTVL will be used in Canada for various combat and combat service support roles.

"We are very pleased about landing this contract," said Bill Grusonik, United Defense Program Manager for M113. "This will mean a significant amount of work for United Defense's engineering department."

United Defense L.P. is the largest manufacturer and systems integrator of tracked, armored combat vehicles in the United States and a supplier to the security forces of allied nations. Combining FMC Defense Systems and Harsco's BMY Combat Systems Division, United Defense is a limited partnership, with FMC Corp. owning 60 percent and Harsco owning 40 percent.

United Defense operates eight manufacturing sites in six states, participates in joint ventures in five countries and provides services to customers worldwide.

CONTACT: United Defense L.P., Santa Clara 

R.W. Highlander, 408/289-2882