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Ceradyne Gets $60 Million Contract To Provide Body Armor To Army

Deal could go as high as $612 million.

Ceradyne Inc. said Monday it received a new 60-month government contract for Enhanced Side Ballistic Inserts (ESBI), with a maximum value of $611.7 million. The company received an initial delivery order for $59.8 million scheduled to be shipped from July 2006 to November 2006.

The contract was awarded to Ceradyne by the U.S. Army, Aberdeen Proving Ground, Maryland.

"Over the past few years, we have expanded our capacity for state-of-the-art lightweight ceramic body armor in Costa Mesa, California, and our new Lexington, Kentucky, facility," said David Reed, Ceradyne president of North American operations. "We are confident we will meet the Army's quality and delivery requirements."

Reed noted hat under this contract, the government is obligated to purchase only certain minimum quantities. Each delivery order, such as the initial delivery order for $59.8 million, is issued as a release against a maximum amount, which for this ID/IQ contract is $611.7 million.

Ceradyne develops, manufactures and markets advanced technical ceramic products and components for defense, industrial, automotive/diesel, and consumer applications.