CRDN Ceradyne, Inc. (MM)

Ceradyne, Inc. (NASDAQ:CRDN) has been awarded an indefinite delivery/indefinite quantity (ID/IQ) five-year order from the United States Special Operations Command (USSOCOM), MacDill Air Force Base, Florida. The order is estimated to have a maximum value in excess of $400 million. The initial delivery order against the ID/IQ contract is $4.9 million and is scheduled for delivery in early 2008. The order is for the Family of Ballistic Plates for Body Armor Load Carriage System (BALCS). ID/IQ orders allow the government a great deal of flexibility as to exact quantities that will be ordered and timing. This ID/IQ order is estimated to have less than a $6 million minimum value and a maximum value in excess of $400 million. It is Ceradyne�s policy to only book an order as firm backlog that has committed delivery dates, such as the above initial $4.9 million delivery order. David P. Reed, Ceradyne President North American Operations, commented: �We are extremely pleased to have received this multi-year BALCS order from the Special Operations Command (SOCOM). We have been supplying lightweight ceramic armor to SOCOM since the late 1990�s and believe our past history of high quality and on-time deliveries helped us in this recent �win.� Our armor production capacity in Lexington, Kentucky, and Costa Mesa, California, will allow us to meet SOCOM�s requirements. Based on past practice and non-binding conversations with the government, we believe there will be a series of delivery orders issued in 2008 against the blanket ID/IQ contract.� Ceradyne develops, manufactures and markets advanced technical ceramic products and components for defense, industrial, automotive/diesel and commercial applications. Additional information about the Company can be found at www.ceradyne.com. Except for the historical information contained herein, 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, 2006, and its Quarterly Reports on Form 10-Q, as filed with the U.S. Securities and Exchange Commission.