CRDN Ceradyne, Inc. (MM)

Ceradyne, Inc. (Company) (Nasdaq:CRDN) received a purchase order from Flyer Defense, LLC, in Inglewood, California, for a prototype lightweight ceramic-armored crew compartment for the Flyer(R) ITV (Internally Transportable Vehicle) incorporating technology specifically designed to meet the requirements of the U.S. Army's recently announced Long Term Armor Strategy (LTAS). The Flyer(R) ITV, or ALSV (Advanced Light Strike Vehicle), is a multi-role, military light tactical vehicle that fills a number of military requirements for a lightweight, highly mobile vehicle capable of fast attack, serving as a weapons carrier, or use for command and control or logistical support. The Flyer(R) ITV will also be easily configured and transported in the Army's CH-47 Chinook helicopter or Marine Corps' CH-53E Super Stallion helicopter. The Flyer(R) ITV may also be configured with add-on armor and still be internally transported in the new Special Operations aircraft, the V-22 Osprey. Ceradyne will incorporate its FlexKit(TM) ceramic armor system, which is adjustable and interchangeable and consistent with LTAS requirements for ballistic and blast protection. The build will be performed at Ceradyne's Wixom, Michigan, facility, with the lightweight armor design allowing the use of the Flyer's standard drive train components. Ceradyne will display the Flyer(R) ITV with FlexKit(TM) armoring at the Special Operations Command Exhibition next month in Tampa, Florida. Marc King, Ceradyne vice president of armor operations, commented: "We are pleased to be teaming with Flyer Defense to develop a new lightweight armor crew cab for its Flyer(R) advanced tactical vehicles that meets the requirements for the U.S. Army's Long Term Armor Strategy as well as the unique needs of our Special Operations Forces. The primary objective of using Ceradyne's lightweight armor as part of the overall design is to protect crews from high levels of ballistic threats, including blast protection, while achieving significant reductions in weight compared to traditional all-metal armor. "We understand that Flyer plans to offer this vehicle with Ceradyne armor protection to all branches of the U.S. military and a number of foreign governments that have expressed interest in lightweight tactical vehicles," King added. "The design flexibility of FlexKit(TM) ceramic armor and the resulting advanced features and performance characteristics of the Flyer(R) will make it attractive for a variety of military applications." Ceradyne develops, manufactures and markets advanced technical ceramic products and components for defense, industrial, automotive/diesel, and consumer applications. Additional information about the Company can be found at www.ceradyne.com. This press release contains forward-looking statements regarding future events and the future performance of Ceradyne that involve risks and uncertainties that could cause actual results to differ materially from those projected. Words such as "anticipates," "believes," "plans," "expects," "intends," "future," and similar expressions are intended to identify forward-looking statements. These risks and uncertainties are described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2005, and its Quarterly Reports on Form 10-Q, as filed with the U.S. Securities and Exchange Commission.