EXHIBIT INDEX
Company Press Release September 28, 2000, titled "Stewart & Stevenson Tactical
Vehicle Systems, LP Receives US Army Contracts For $25 Million."
Client: Stewart & Stevenson Services, Inc.
Contacts: David Stewart, Treasurer
Stewart & Stevenson Services, Inc.
713-868-7657 / [email protected]
Ken Dennard / [email protected]
Lisa Elliott / [email protected]
Easterly Investor Relations
713-529-6600
STEWART & STEVENSON TACTICAL VEHICLES SYSTEMS, LP
RECEIVES US ARMY CONTRACTS FOR $25 MILLION
HOUSTON - SEPTEMBER 28, 2000 - Stewart & Stevenson Services, Inc.
(NASDAQ:SSSS), a leading manufacturer and distributor of industrial and energy
related equipment; oilfield and airline ground support equipment; and a
manufacturer of medium tactical vehicles, announced that Stewart & Stevenson
Tactical Vehicle Systems, LP (TVSLP) in Sealy, Texas, has received contract
awards for approximately $25 million by the US Army's Tank-automotive and
Armament Command (TACOM).
The Army exercised three option modifications totaling approximately $15
million to its Family of Medium Tactical Vehicles (FMTV) production contract.
The options call for the delivery of 103 vehicles - 92 M1088A1 five-ton tractors
and 11 M1083A1 five-ton cargo trucks - in the Production Year 3 phase of the
contract. The option vehicles are scheduled for delivery through the third
quarter of 2001.
TVSLP also received a new contract for approximately $10 million from the
US Government to incorporate 16 enhancements into approximately 4,200 earlier
production FMTV AO model trucks over the next 19 months.
"We are pleased that the Government continues to exercise options to modify
the second production contract it awarded to the company to build approximately
7,800 trucks and 1,500 trailers," said Richard M. Wiater, President of TVSLP.
"Including these $15 million contract modifications, a total of $119 million has
been added to the initial $1.38 billion order signed in October 1998 and further
options are expected to be exercised in the future. Moreover, we continue to
enjoy additional contracts from the US Government such as the $10 million amount
associated with enhancements to be made to trucks in the field from the previous
1991 contract."
The tractors and five of the cargos are for the U.S. Army Reserve, while
six cargos are slated for delivery to the Air National Guard. This new order for
103 vehicles brings the total ordered under the current production contract to
more than 8,100 trucks and almost 1,600 trailers.
Stewart & Stevenson Tactical Vehicle Systems, LP is the prime contractor
for the U.S. Army's Family of Medium Tactical Vehicles Medium Tactical Vehicles
(FMTV), which includes 2.5 and 5-ton trucks in 14 variants and companion
trailers. TVSLP also sells military vehicles to governments and government
contractors worldwide. For more information about TVS visit
http://www.fmtvtruck.com.
Founded in 1902, Stewart & Stevenson Services, Inc. (NASDAQ:SSSS) is a
billion-dollar company that manufactures and distributes a wide range of
industrial products and diesel-powered equipment to key industries worldwide:
petroleum, power generation, defense, airline, marine and transportation. Visit
the company's corporate Web site at http://www.ssss.com.
This press release includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Stewart & Stevenson believes that its expectations, as
expressed in these statements, are based on reasonable assumptions regarding the
risks and uncertainties inherent in achieving those expectations. These
statements are not, however, guarantees of future performance and actual results
may differ materially. The most important factors that may cause actual results
to differ from our expectations are the risks of cancellation, adjustment or
termination of the FMTV procurement program; unilateral changes directed by the
U. S. Army in the scope or timing of the program; future government budgeting,
and changes in applicable laws. Other risk factors are listed in Stewart &
Stevenson Services, Inc. annual report to the Securities and Exchange Commission
on Form 10-K for the year ended January 31, 2000, and Quarterly Report to the
Securities and Exchange Commission on Form 10-Q for the three months ended July
31, 2000.
