the contract, finally
Air Methods Receives $5 Million Contract for U.S. Army's UH-60Q
Denver, CO., October 5, 1999 -- Air Methods Corporation (NASDAQ: AIRM) Products Division announced that it received a contract for six UH-60Q Multi-Mission Medevac Systems, with an option for an additional five systems, from Sikorsky Aircraft Company (SAC), a United Technologies Corporation (NYSE:UTX) subsidiary headquartered in Stratford, CT. The total value of this contract with options exceeds $5 million, $3 million of which will be recognized over the next ten months and, if the option is exercised, $2 million will be recognized in FY00-01.
The Army intends to field approximately 357 units over the next 10-20 years, potentially yielding revenue for Air Methods in excess of $150 million. In July 1996, the Products Division was selected by the U.S. Army as the supplier for the UH-60Q Multi-Mission Medevac System. This state-of-the-art system is capable of converting from three different mission profiles (medevac, personnel and cargo) within two minutes without removing or replacing any equipment.
George Belsey, Chairman and CEO, said, “We are excited about beginning low-rate, initial production, and are very pleased to achieve this significant milestone. In addition, we are also very pleased to hear that the UH-60Qs in operation with the Tennessee National Guard are performing a valuable multi-mission role while on disaster relief in North Carolina due to Hurricane Floyd.”
“We are scheduled to deliver the first two units in April 2000 and the remaining four units in June 2000,” said Michael Prieto, Vice President of the Products Division. “Four of the units will be installed in new production Black Hawks coming off the assembly line. This now provides U.S. and international government agencies the option of purchasing either a new Black Hawk with Air Methods' Multi-Mission Medevac System or modifying an existing aircraft already in inventory. We also have the opportunity to generate additional revenue through product sales in foreign government markets. We expect these opportunities to mature with the U.S. Army's commitment to field UH-60Qs on a production basis.”
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