ARG.L Regulatory News (ARG)

11 Nov 2005 12:44

ArmorGroup International plc11 November 2005 11 November, 2005 ArmorGroup International plc Wins significant US Government contract with Bechtel ArmorGroup International plc, the leading international provider of defensiveprotective security services, unexploded ordnance clearance and securitytraining services, announces today that its North American subsidiary, as partof a team headed by Bechtel National, Inc., has been awarded a prime contract bythe US Air Force. The Bechtel team is one of six contractor groups selected forthe conduct of a ten year global U.S Air Force Contract Augmentation Program(AFCAP) III, which could extend to $10 billion if all the Task Order options areexercised. ArmorGroup is the sole security provider to Team Bechtel, which will compete toprovide planning and deployment support for the US Air Force, Department ofDefense or any federal government agency on their AFCAP III deployments, bothwithin and outside the continental United States. There have been over 20deployments since 1999 on the previous AFCAP programmes, but the frequency ofdeployments is expected to increase, and the first Task Order RFP is expected inthe very near future. The AFCAP III programme will provide a global response to meet a wide range ofsupport activities, focusing on temporary contingency skills and resources tosustain US forces, whether on military operations or supporting humanitarian anddisaster activities in any geographical theatre of operations in minimal time.Given AFCAP III's scope, ArmorGroup expects the majority of its activities withTeam Bechtel will be outside of Iraq, where a suitable coalition militaryinfrastructure already exists. Projected revenues for each prime contractor from this contract areundeterminable at this early juncture due to the indefinite delivery/ indefinitequantity nature of the agreement and will depend on the specific work ordersawarded to each of the six groups. While not all of the task orders awarded toTeam Bechtel under the contract will require security, ArmorGroup still expectsto achieve a steady revenue stream from AFCAP III over the period of theprogramme. This award underlines the Group's continuing strategy to achievesignificant business outside of Iraq. Steve Kappes, Chief Operating Officer, commenting on the award said: "We areextremely proud to be a part of Team Bechtel's winning solution to the US AirForce's global contingency requirements. Bechtel chose us to be part of theteam due to their longstanding and successful relationship with ArmorGroup overthe last 10 years spanning several countries and we are very pleased to besupporting them again. This contract provides a perfect match for ArmorGroup'sglobal presence and our strategic positioning as one of the world's leadingsecurity providers." Enquiries: ArmorGroup International plc Jerry Hoffman, Chief Executive Officer tel: + 44 (0) 207 808 5800Steve Kappes, Chief Operating OfficerDave Seaton, Chief Financial OfficerNick Melson, Communications Manager Citigate Dewe Rogerson Patrick Toyne Sewell / Ged Brumby tel: + 44 (0) 207 638 9571 Notes to Editors ArmorGroup International plc. ArmorGroup, which has its headquarters in London and a major office inWashington DC, has over 7,700 employees and operations in over 26 countries. Itprovides its services principally to first world national governments, majorinternational inter-governmental organisations and multinational corporations.It operates principally in regions of the world with diminished law and order orwith a high risk of terrorism or which were former areas of conflict includingthe Middle East, Africa, South America, the CIS and Asia. The Group listed onthe London Stock Exchange in December 2004. For more information please visitwww.armorgroup.com. The use of Proxy Agreements has been regularly used by non-U.S. companies in thesecurity industry with operating subsidiaries in the United States that couldpotentially have access to U.S. classified information. The integrity of theclassified information is protected by appointing three Proxy Holders to haveauthority to exercise all voting rights with respect to shares owned by theforeign company, in our case, ArmorGroup International plc, in its U.S.subsidiaries. It is anticipated that the terms of the Proxy Agreements willrequire the Proxy Holders not to accept direction from the Company nor permitthe Company to exercise any control or influence over the US subsidiaries.However, the Proxy Holders will be obliged under these arrangements to act ingood faith to protect the legitimate economic interests of the Company and willnot be entitled to carry out certain fundamental actions without the expresswritten approval of the Company. The use of Proxies does not in any way impactthe financial reporting or recognition of revenues earned by such contracts,merely the access to classified information to any foreign entities or employeesand the ownership control exerted by the foreign parent on its U.S. subsidiary. This information is provided by RNS The company news service from the London Stock Exchange