SVC Merrill Lynch

HOUSTON, Sept. 7 /PRNewswire-FirstCall/ -- Stewart & Stevenson Services, Inc. (NYSE:SVC) announced today that Stewart & Stevenson Tactical Vehicle Systems, LP (TVS) received a contract from the U.S. Army to produce an additional 292 Low Signature Armored Cabs (LSAC) for its Family of Medium Tactical Vehicles (FMTV). Previously, the Army had authorized the long lead item material procurement for these cabs and deliveries were anticipated by the company in the third fiscal quarter of the year. The contract, valued at approximately $17 million, will bring the U.S. Army's LSAC inventory to over 2,000. The LSAC is specifically designed to minimize any adverse impact on the soldier and the vehicle. The armored cab acts as a protective cocoon, shielding its occupants from a variety of threats including enemy assault, extreme climate conditions, and accidents including roll-over. To date, these protective systems have saved numerous soldiers' lives in operational zones. Dennis Dellinger, President of TVS, said, "We take pride in our proactive approach of providing effective protection systems for our soldiers and in meeting the Army's armoring needs in response to the on-going war effort. We are working with the U.S. Army in defining future vehicle protection strategies. This ensures development of our production and design capabilities to protect our soldiers in the future." Stewart & Stevenson has produced over 30,000 FMTV vehicles and 1,700 LSAC cabs since 1991 from their state-of-the-art facility in Sealy, Texas. The FMTV, which includes 2.5-ton, 5-ton and 10-ton trucks in more than 15 active variants, has become the platform of choice for the U.S. Army. In April 2005, Stewart & Stevenson widened their military product range to include the 4x4 and 6x6 Pinzgauer all-terrain vehicle, built in the United Kingdom. Stewart & Stevenson Services, Inc., founded in 1902, is a billion-dollar company that manufactures, distributes, and provides service for a wide range of industrial products and diesel-powered equipment to key industries worldwide, including power generation, defense, marine, petroleum and transportation. For more information on Stewart & Stevenson visit http://www.ssss.com/ . This press release contains forward-looking statements that are based on management's current expectations, estimates, and projections. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions and are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Many factors, including those discussed more fully elsewhere in this release and in the Company's filings with the Securities and Exchange Commission, particularly its latest annual report on Form 10-K, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to, risks of dependence on government and failure to obtain new government contracts, inherent risks of government contracts, risks of supply interruptions to Tactical Vehicle Systems segment, risks associated with Distributed Energy Solutions segment, risks of fixed-price contracts, risks as to rising steel prices, risks as to cost controls, risks of general economic conditions, risks of oil and gas industry economic conditions, risks as to distributorships, risks as to licenses, risk of competition, risks relating to technology, risks as to terrorist attacks on the U.S. and their impact on the U.S. economy, risks relating to personnel, risks of claims and litigation, risks of product defects, risks as to foreign sales and global trade matters, risks as to acquisitions and restructuring activities, risks as to currency fluctuations, risks as to environmental and safety matters, and credit risks all as more specifically outlined in the Company's latest annual report on Form 10-K. In addition, such forward-looking statements could be affected by general industry and market conditions and growth rates, general domestic and international conditions including interest rates, inflation and currency exchange rates and other future factors. Actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. DATASOURCE: Stewart & Stevenson Services, Inc. CONTACT: John Simmons, Sr.V.P., C.F.O. of Stewart & Stevenson Services, Inc., +1-713-868-7700 Web site: http://www.ssss.com/

Copyright