Orbit International Receives Additional Awards from NAVICP for Color Plasma Entry Panels

Potential for Retrofit Program Could Exceed $20 Million
HAUPPAUGE, N.Y.--On Thursday August 27, 2009, 8:45 am EDT (BUSINESS WIRE)--Orbit International Corp. (NASDAQ:ORBT - News), a defense electronics manufacturer, systems integrator and software solution provider, today announced that its Electronics Group continues to receive additional retrofit awards that now exceed $540,000 since January 2009. These awards are released from the U.S. Naval Inventory Control Point (NAVICP), Mechanicsburg, PA. for the manufacture of its Color Plasma Entry Panels (Color PEP). The Color PEPs were designed to replace older Orbit Plasma Entry Panels currently supporting UYQ-21 Naval console requirements. Deliveries under this contract are expected to commence in the fourth quarter 2009 and be completed by the first quarter 2010.
These continuing contract awards from NAVICP for the Color PEP are significant in that they represent further evidence that NAVICP is committed to a program under which soon to be obsolete Plasma Entry Panels will be replaced by the Color PEP, which was specifically designed as a low cost, enhanced capability end-of-life replacement for the Plasma Entry Panels originally designed by Orbit. The new Color PEPs, once installed, significantly upgrade the functionality and capabilities of all UYQ-21 consoles for U.S. and foreign fleet service.
These Color PEPs will continue to support an ongoing replacement program funded for the purpose of removing hardware that is too costly to repair, refurbish, or in some instances, older components are no longer procurable, making the Plasma Entry Panel obsolete to manufacture. The Company can now provide state-of-the-art hardware with enhanced capabilities as form fit replacement for the UYQ-21 consoles on board most U.S. Naval surface ships.
Dennis Sunshine, Orbit’s President and Chief Executive Officer, commented, “Our older Plasma Entry Panels, initially designed and installed since 1982, continue to support computer display systems for UYQ-21 Naval Surface shipboard fleet requirements as well as land based test facilities. The Company has previously delivered in excess of 3,500 of the originally designed Plasma Entry Panels to a number of prime defense electronic contractors, including Hughes Aircraft Company, Raytheon Company, DRS, Lockheed Martin, and directly to Naval Procurement Offices supporting UYQ-21 console testing facilities. These units have had a successful history of providing the console operator with critical real time data for the Command Information and Control Room, as well as the Fire Control areas, for all U.S. Naval Cruisers, Destroyers, and Fleet Carriers utilizing the UYQ-21 console systems.”
Sunshine stated, “Since all of the UYQ-21 consoles currently on board each ship platform will remain operational on an extended deployment basis, this cost reduction retrofit initiative is aligned with the cost saving policies announced by the current administration. Our Company has the potential to replace these older units for the navies of the U.S., Spain, and Japan. The CG-47 Ticonderoga class AEGIS cruisers, DDG-51 Arleigh Burke class AEGIS destroyers, and the FFG-7 Oliver Hazard Perry class frigates are just some of the U.S. surface vessels equipped with the UYQ-21 system.”
Finally, Sunshine stated “Up to this point in time, our Company has provided Color PEPs as ’seed units’ for selective naval platforms. These latest Color PEP awards which began in January 2009, although small in dollar amount, take the replacement initiative to the next level. Our Company is now replacing older Plasma units on a one for one basis, as the UYQ-21 console continues to support our Naval presence throughout the world. By extending the useful life of a previously commissioned ship by some 15-25 years, the Company anticipates a potential requirement for a significant number of Color PEPs. Since the awards are designed to replace older Plasma Panels with Color PEPs on a ship by ship basis, our Company will report the number of future awards on a semi-annual basis. Based on the number of units previously delivered since 1982, we view this color PEP replacement program as a significant long term opportunity, with the potential to generate in excess of $20 million revenue subject to future funding of the program.”
Orbit International Corp. is involved in the manufacture of customized electronic components and subsystems for military and nonmilitary government applications through its production facilities in Hauppauge, New York, and Quakertown, Pennsylvania; and designs and manufactures combat systems and gun weapons systems, provides system integration and integrated logistics support and documentation control at its facilities in Louisville, Kentucky. Its Behlman Electronics, Inc. subsidiary manufactures and sells high quality commercial power units, AC power sources, frequency converters, uninterruptible power supplies and associated analytical equipment. The Behlman military division designs, manufactures and sells power units and electronic products for measurement and display.
Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company including, but not limited to, statements regarding any acquisition proposal and/or the potential sale of the Company and whether such acquisition proposal, potential sale or a strategic alternative thereto may be considered or consummated; statements regarding our expectations of Orbit’s operating plans, deliveries under contracts and strategies generally; statements regarding our expectations of the performance of our business; expectations regarding costs and revenues, future operating results, additional orders, future business opportunities and continued growth, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although Orbit believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.
Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond Orbit International's ability to control or predict. Important factors that may cause actual results to differ materially and that could impact Orbit International and the statements contained in this news release can be found in Orbit's filings with the Securities and Exchange Commission including quarterly reports on Form 10-Q, current reports on Form 8-K, annual reports on Form 10-K and its other periodic reports. For forward-looking statements in this news release, Orbit claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Orbit assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise.