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Orbit International Corp. Receives $415,000 Contract for Common Transponder Program

Posted on: Tuesday, 31 January 2006, 09:00 CST

Orbit International Corp. (NASDAQ:ORBT), a military defense electronics supplier, today announced it has received an additional order from a leading defense prime contractor totaling approximately $415,000 to procure its Remote Control Units (RCU) in support of the Common Transponder (CXP) program for both U.S. Navy and U.S. Army requirements. Deliveries under this award are expected to commence in the third quarter of 2006 and continue through the end of the year.

With this order, all of the RCUs under the terms of a Master Order Agreement have been procured by the prime contractor resulting in $3,600,00 in revenue. At the request of the same prime contractor, the Company has recently submitted proposals for up to an additional 500 RCUs valued at approximately $3,300,000. Deliveries under these pending contract awards are expected to commence in the first quarter of 2007 and continue through 2008.

Dennis Sunshine, President and Chief Executive Officer added, "The CXP program has generated a significant revenue stream for our Electronics Segment and we are confident that we will complete negotiations on a Long Term Agreement (LTA) for additional RCUs now that the current Master Order Agreement is completed."

Sunshine continued, "Our Electronics Segment, which now includes our Tulip Development Laboratory, Inc. subsidiary, continues to pursue several significant new business and follow-on opportunities. The business from our Power Units Segment also remains strong and we are confident that our Company will continue its strong operating results in 2006. Furthermore, the Company continues to review several acquisition opportunities that fall within our criteria of having strong management in place, growth opportunities, accretive to earnings and complementary to our existing businesses."

Orbit International Corp., based in Hauppauge, is involved in the manufacture of customized electronic components and subsystems for military and nonmilitary government applications. 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. For a more detailed discussion of the risks inherent in the Company's business, the reader is referred to the Company's Annual Report on Form 10-KSB for the fiscal year ended December 31, 2004 and its registration statement on Form S-3 containing a final prospectus dated January 11, 2006.

This press release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including the expected delivery dates under the RCU contract, the receipt of new awards up to an additional 500 RCUs valued at approximately $3,300,000, the expected delivery dates of these new awards, the Company completing negotiations on a LTA, the Electronics Segment continuing to pursue several significant new business and follow-on opportunities, the business from the Power Units Segment remaining strong and the Company continuing its strong operating results in 2006. These forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual future results of the Company to be materially different from such forward looking statements. Factors that might result in such differences include, without limitation, the current economic climate and military conflicts, variable market conditions and changing needs of its customers. The forward-looking statements contained in this press release speak only as of the date hereof. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission.

Source: Business Wire

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