$107 Million Body Armor Order for Ceradyne

Ceradyne, Inc. received a $107 million delivery order for ESAPI (Enhanced Small Arms Protective Inserts) from the U.S. Army, Aberdeen Proving Ground, Maryland. This new delivery order is scheduled to be shipped beginning January 2008 through May 2008. This delivery order will be shipped against a larger indefinite delivery/indefinite quantity (ID/IQ) contract. The Company records as firm orders only delivery orders, such as the above, that have firm scheduled delivery dates.

David P. Reed, Ceradyne President North American Operations, commented: "We are pleased to have received this ESAPI order as it gives our Company visibility through May of next year. Utilizing the Lexington, Kentucky facility and the Costa Mesa and Irvine, California plants, we expect to meet the Army's quality and delivery requirements."

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