EDO AIL
Investor Briefing 2000
(This page shows a picture of the sky with the EDO and AIL logos.)
<PAGE>
EDO Introduction
- EDO and AIL Announce Merger on January 3, 2000
- Shareholder Vote Scheduled for April 28, 2000
- Purpose of This Briefing
- Objective of the Merger
-- Product Lines of the Company
-- Financials
-- Q&A
<PAGE>
EDO Objectives of the Merger
- Create a Larger Integrated Defense and Aerospace Supplier of Mission-
Critical Products
- Create Technical Synergies That Will Expand the Addressable Market
- Provide Greater Leverage in Capital Markets to Accelerate Future Growth
<PAGE>
EDO Corporation
Investor Briefing 2000
(This page shows a picture of the sky with the EDO logo.)
<PAGE>
EDO Profile
Designer and Manufacturer of Defense and Aerospace Products and Engineered
Materials for Domestic and International Markets
(This page shows a picture of an F-22 airplane and large composite tanks.)
<PAGE>
EDO Profile
- Supplier of Mission-Critical Products for Defense, Aerospace and
Industrial Customers
- Financial Condition (1999)
-- $133 Million Backlog
-- $ 30 Million Cash
-- $ 30 Million Line of Credit
<PAGE>
EDO Profile
- Defense and Aerospace Products
(The following pictures of EDO products are shown:
The AMRAAM Vertical Eject Launcher (AVEL)
A C4I display console
The MK 105 Mod 4 Magnetic Influence Minesweep System)
- Engineered Materials
(The following pictures of EDO products are shown:
Transducers
Piezoelectric Ceramics
Composite Tanks)
<PAGE>
EDO Profile
(The following financial data is presented as two bar charts.)
Revenue
1995 1996 1997 1998 1999
--------------------------------
Defense & Aerospace $37M $38M $44M $54M $66M
Engineered Materials $27M $30M $30M $28M $32M
--------------------------------
Total $64M $68M $74M $82M $98M
Backlog
1995 1996 1997 1998 1999
--------------------------------
Defense & Aerospace $41M $61M $74M $117M $118M
Engineered Materials $21M $16M $19M $13M $16M
--------------------------------
Total $62M $77M $95M $130M $134M
<PAGE>
EDO Profile
(The following financial data is presented as two bar charts.)
Operating Earnings
1995 1996 1997 1998 1999
--------------------------------
EDO Corporation $6M $15M $8M $12M $9M
Earnings Per Share
1995 1996 1997 1998 1999
--------------------------------
EDO Corporation $0.66 $2.13 $1.01 $1.42 $0.76
<PAGE>
EDO Profile
(The following financial data is presented as two bar charts.)
Shareholders Equity
1995 1996 1997 1998 1999
--------------------------------
EDO Corporation $15M $20M $28M $38M $40M
Cash
1995 1996 1997 1998 1999
--------------------------------
EDO Corporation $23M $21M $21M $34M $30M
<PAGE>
EDO Markets
(The following financial data is presented as a pie chart.)
Defense & Aerospace - Domestic 39%
Defense & Aerospace - International 28%
Engineered Materials - Domestic 27%
Engineered Materials - International 6%
-----
Total 100%
<PAGE>
EDO Defense & Aerospace
Aircraft Armament Products
(This page shows a pictures of the F-15E Eagle, F-22 Raptor and Japanese F-2
airplanes)
- EDO Is a World Leader in:
-- Suspension and Release Equipment
-- New Carriage Technology
-- Alternate Energy Sources
<PAGE>
EDO Defense & Aerospace Markets
(This page shows a pictures of the Boeing XA-32 JSF airplane with the
caption "Member of the Boeing and Lockheed JSF Teams.")
- Aircraft Armament
-- Alternate Energy Sources
-- Smart Weapons
-- Stealth Configurations
Market $300M
- F-15E Eagle World Wide
- F-22 Raptor
- Joint Strike Fighter (JSF)
- Smart Weapons Carriage
-- F-16
-- F-18
<PAGE>
EDO Defense & Aerospace
Combat Systems Products
(This page shows a picture of an international ship with the following
equipment depicted:
Navigation Console
Electro-Optical Sensor Head
Navigation Radars
AN/SPS-67 IFF
Electronic Chart Display
Heading Reference System
Weapons Console
Sonar
EDO Malfunction Consoles
Horizon Reference System
Slope Indicator)
- Undersea Warfare
- Digital Data Links
<PAGE>
EDO Defense & Aerospace
Markets
(This page shows a picture of a Sonar Control-Indicator Console.)
- ASW Sonar
-- Continued Development of COTS Based Systems
-- Active Towed Systems
Combat Systems
Market $500M
- Upgrades to 80+ EDO Sonars
- NATO SSSB
- Data Links
- Systems Integration/Analysis
<PAGE>
EDO Defense & Aerospace
Mine Warfare Products
(This page shows pictures of the EDO MK 105 Mod 4 Airborne Magnetic Mine
Countermeasures System with the caption "MK 105 Mod 4.")
EDO Has been the Sole Source Supplier of Magnetic Sweep Systems to the
Airborne MCM Forces for 25+ Years
- MK 105
- MK 105 Upgrade
- SWIMS (Shallow Water Influence Magnetic Sweep)
- Depot Service
<PAGE>
EDO Defense & Aerospace
Markets
(This page shows a picture of the Shallow Water Influence Magnetic Sweep -
SWIMS.)
- Mine Warfare
-- MK 105 Upgrade
-- Organic Capability
-- Shallow-Water Sweep
-- AMCM Command and Control
-- Integrated MCM System
Market $200M
- MK 105 Upgrade
- Shallow Water Mine Sweeping
- Organic MCM
- International MCM
<PAGE>
EDO Engineered Materials - Ceramics Products and Markets
(This page shows pictures of EDO piezoelectric ceramic products, miniature
ceramic shapes for the cellular communications industry, and a cellular
communications repeater tower.)
- EDO Is a Major Supplier of Ceramic Shapes in the U.S.
-- Naval Arrays
-- Oceanographic Exploration
-- Fish Finders
-- Ultrasonics
-- Cellular Communications
-- Motors and Actuators
Market $150M
- Military
- Cellular Communications
- Medical
- Controls
- Underwater Sensors
<PAGE>
Engineered Materials - Composites Products and Markets
(This page shows pictures of the Boeing 767 airplane, an EDO composite
airplane waste tank, an off-shore oil rig, and EDO composite piping
installed on an oil rig.)
- EDO Is a Major Supplier of Composite Products
-- Waste and Water Tanks for the Commercial Aircraft Industry
-- Piping and Structures for Off-Shore Oil Industry
Market $155M
- Commercial Aircraft
- Transportation
- Military
- Off-Shore Oil Industry
<PAGE>
AIL
Investor Briefing 2000
(This page shows a picture of the sky with the AIL logo.)
<PAGE>
AIL PROFILE
Systems Integrator and a Producer of High-Technology Electronic Products
for Defense and Commercial Applications
(This page shows pictures of a TDRS Satellite and the B-1B airplane.)
<PAGE>
AIL PROFILE
DEFENSE SYSTEMS
(The following pictures are shown:
- The EA-6B airplane
- An Extended Range Guided Munitions (ERGM) Missile GPS Antijam)
SPACE AND COMMUNICATIONS PRODUCTS
(The following pictures are shown:
- The Space Shuttle
- The Boeing 777 Airplane)
<PAGE>
AIL PROFILE
(The following financial data is presented as two bar charts.)
REVENUE
1997 1998 1999
---------------------
AIL $103M $120M $146M
BACKLOG
1997 1998 1999
--------------------
AIL $102M $124M $131M
<PAGE>
AIL PROFILE
(The following financial data is presented as two bar charts.)
OPERATING EARNINGS
1997 1998 1999
--------------------
AIL $3M $28M $6M
EARNINGS PER SHARE
1997 1998 1999
--------------------
AIL $0.63 $4.62 $0.39
<PAGE>
AIL PROFILE
(The following financial data is presented as two bar charts.)
SHAREHOLDERS EQUITY
1997 1998 1999
--------------------
AIL $22M $41M $44M
LONG TERM DEBT
Stub 1997 1998 1999
-------------------------
Other $19M $16M $14M
Acquisition - $15M $ 9M
---- ---- ----
Total $19M $31M $23M
<PAGE>
AIL Markets
(The following financial data is presented as a pie chart.)
Space and Communications Products 30%
Defense Systems 70%
----
Total 100%
<PAGE>
AIL Defense Electronics Systems
(The following pictures are displayed on this page:
The EA-6B airplane
The B-1B airplane with AN/ALQ-161 LRU modules displayed
An MDDS Chip
The Universal Exciter Upgrade.)
UEU the Voice of the Prowler
AN/ALQ-161 Self Defense System for the B-1B
ALQ-161 STAYS INSTALLED THRU 2009+ IN CURRENT AIR FORCE PLAN
UPGRADE PROGRAM TO ADD MID 90s TECHNOLOGY TO THE 500+ UNIVERSAL EXCITERS IN
THE FLEET
DEFENSE MARKET $750M
<PAGE>
AIL Space Products and Technologies
(The following pictures are displayed on this page:
NPOESS
GEOSAT
HRUPPA
HS 601
TDRS
HS702
SHUTTLE)
SPACE PRODUCTS MARKET $800M
<PAGE>
AIL Antenna Products and Technologies
(The following pictures are displayed on this page:
Military antennas
A wireless antenna
A CNI antenna
Commercial GPS and ITS antennas
A custom military airborne antenna
The Arleigh Burke destroyer
The AS-4305)
CUSTOM MILITARY APPLICATIONS
CONFORMALS
RETRACTABLES
CRPA
L/O
COMMERCIAL WIRELESS APPLICATIONS
MILITARY SHIPBOARD
VHF/UHF COMMUNICATIONS
HF
IFF
EW/ESM
RADAR
SATCOM
CNI ANTENNAS FOR COMMERCIAL AVIATION
MILITARY AIRBORNE
VHF/UHF COMMUNICATIONS
GPS
IFF/TACAN
EW/ESM
RADAR
SATCOM
COMMERCIAL GPS AND ITS APPLICATIONS
ANTENNA MARKET $250M
<PAGE>
AIL Technical Services and Support Equipment
(The following pictures are displayed on this page:
B-1B with flight line support equipment
Avionics Data Acquisition Data and Control System
Portable Radar Simulator
A Laboratory)
- Flight Line Support Equipment
- Portable Flight Line Test Sets
- Avionics Instrumentation
- Laboratories
SERVICES & EQUIPMENT MARKET $100M
<PAGE>
AIL Interference Cancellation Systems (ICS)
(The following pictures are displayed on this page:
- U.S. Army Guardrail
- U.S. Air Force SOF CV-22
- U.S. Navy Extended Range Guided Munitions
- U.S. Air Force Rivet Joint)
ICS MARKET $100M
<PAGE>
EDO and AIL Products Are Complementary and Mission Critical
EDO AIL
AIRCRAFT ARMAMENT AIRBORNE ELECTRONIC COUNTERMEASURES
Bomb Racks Escort Jamming Systems
Missile Launchers Self-Protect Systems
Aircraft Structures
MINE COUNTERMEASURES RADAR SYSTEMS
Minesweeping Systems Ground-Based
Airborne
SHIPBOARD COMBAT SYSTEMS SPACE PRODUCTS
Command, Control Satellite Communications
& Communications Satellite Environmental Sensors
Sonar Systems
Navigation
Fire Control
OPERATIONS ANALYSIS ANTENNAS
Wargaming Military Applications
Modeling Commercial Wireless & Aircraft
Decision Support
PIEZOCERAMIC COMPONENTS ENVIRONMENTAL PRODUCTS
Transducers Radiation Detection
Microwave Ceramics Air Quality Monitoring
ENGINEERED MATERIALS INTERFERENCE CANCELLATION SYSTEMS
Plastic Piping Military Applications
Waste Tanks Commercial Applications
ENGINEERING SERVICE & EQUIPMENT
Flight Line Test Equipment
<PAGE>
EDO AIL
Investor Briefing 2000
(This page shows a picture of the sky with the EDO and AIL logos.)
<PAGE>
EDO NEWCO Pro Forma Financials
- Revenue $244,000
- EBIT $ 11,063
- Backlog $264,880
- Shareholder Equity $ 62,072
<PAGE>
EDO Objective of the Merger
- Create a Larger Company to:
-- Address Larger Programs
-- Exercise Greater Leverage in Financial Markets
-- Achieve Future Growth
--- Acquisitions
--- Increased R&D
<PAGE>
EDO Summary
- Larger, Stronger Company
- Potential Cost Synergies
- Technological Synergy
-- New Products
--- Communications and Command and Control
--- Avionics and Aircraft Armament
- Broader Product and Capability Offering
- Cross-Marketing Opportunities
- Eligible for Larger programs
- Broaden AIL Foreign Market
<PAGE>
We urge investors and security holders to read the following documents
regarding the merger between EDO Corporation and AIL Technologies, Inc.,
because they contain important information:
- - EDO Corporation's joint proxy statement/prospectus on Form S-4 Registration
No. 333-33080, containing or incorporating by reference such other documents
and other information; and
- - EDO Corporation's annual report on Form 10-K for the year ended December 31,
1999, containing or incorporating by reference such other documents and other
information.
These documents and amendments to these documents have been filed with the
United States Securities and Exchange Commission and may be obtained free at
the SEC's web site at www.sec.gov. You may also obtain for free each of these
documents from EDO by directing your request to Marvin D. Genzer, secretary, at
(212) 716-2005 (fax: (212) 716-2050).
