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Air Methods Receives Contract Increase From U.S. Air Force
DENVER, Sept. 14 /PRNewswire/ -- Air Methods Corporation's (Nasdaq: AIRM) Products Division announced that it received an increase in contract value for its Spinal Cord Injury Transport System (SCITS) with the U.S. Air Force (USAF) - Human Systems Wing (AFMC), Brooks, AFB, Texas totaling approximately $500,000. The expanded contract provides additional integration functionality with the USAF AeroMedical Evacuation fleet and brings the target revenue value for the cost reimbursable development phase to approximately $2,800,000.
"Obviously, we are very pleased that the USAF has demonstrated their confidence in the Products Division with this additional award and their desire to expand the functionality by securing additional funding," said Michael G. Prieto, Vice President of the Products Division. "SCITS will provide the U.S. Armed Forces with an improved platform and stretcher for the aeromedical evacuation and care of spinal cord injury, burn and other trauma patients. SCITS will be compatible with a wide variety of air and ground vehicles used by U.S. military services. The system is estimated to replace over 500 obsolete traction device units presently in the USAF inventory. The SCITS Program is vital to the U.S. Air Force commitment to provide the best possible medical care to members injured serving their country."
Air Methods' Products Division was selected as the prime contractor for this program in July 1998. If all contract options are exercised, total revenues could exceed $9 million between now and 2002. In addition, the Company also has the opportunity to generate additional revenue through product sales in the commercial and foreign military markets.
Air Methods also provides a state-of-the-art system for the U.S. Army's UH-60Q, a Multi-Mission Medevac System capable of converting from three different mission profiles (medevac, personnel and cargo) within two minutes without removing or replacing any equipment. The Army intends to field approximately 357 units over the next 10-20 years. Funds for the next six units have been allocated and authorization is pending. |
