Business Services Industry
InVision Technologies Receives $7.2 Million FAA Contract Representing First Half of 16 Unit Order
Business Wire, June 16, 1998
NEWARK, Calif.--(BUSINESS WIRE)--June 16, 1998--
FAA Confirms Intent to Purchase Additional 8 Systems Pending
Budget Reconciliation
InVision Technologies, Inc. (NASDAQ:INVN) today announced that the Federal Aviation Administration (FAA) has purchased eight of the company's new CTX 5500 DS explosive detection systems (EDS) for a total contract price of $7.2 million.
The order follows recent approval by the U.S. Congress to reprogram funds in the 1998 budget for the purchase of additional EDS. The FAA also reconfirmed its intent to purchase an additional eight CTX 5500 DS systems, for a total of 16 units, as previously stated in a Letter of Intent submitted to InVision by the FAA in February 1998. The order for the additional eight systems is expected following the reconciliation of certain budget items.
The systems are scheduled to ship to major airports throughout the United States by September 30, the end of the federal government's 1998 fiscal year. These CTX 5500 DS systems are the first of InVision's newest generation of machines to be installed in the U.S. InVision is currently in discussions with the FAA to upgrade all previously purchased systems to the new CTX 5500 DS units, utilizing proposed 1999 fiscal year funding.
"We are extremely pleased with the FAA's success in reprogramming funds from the 1998 budget as well as its decision to purchase InVision's new CTX 5500 DS systems," said Sergio Magistri, President and Chief Executive Officer of InVision Technologies. "We believe this order reflects the FAA's continued satisfaction with our certified EDS technology and are confident that the performance enhancements of our new model will meet or exceed the airlines' and the FAA's expectations.
"This new contract brings the total number of EDS systems purchased by the FAA to 67," continued Mr. Magistri. "It reaffirms the government's continued commitment to implement the recommendations of the White House Commission on Aviation Safety and Security to improve safety and security for the traveling public. We continue to believe that InVision, as the only company to make FAA-certified EDS, could have significant opportunities resulting from President Clinton's request for $l00 million for explosive detection systems to be included in the 1999 federal budget."
InVision's CTX 5500 DS utilizes a faster computer system and enhanced inspection software that screens bags up to 30 percent more rapidly than the earlier-generation CTX 5000 SP at a comparable cost. Additionally, the CTX 5500 DS features a flexible inspection mode known as "Dynamic Screening(TM)" that allows the systems to adapt to different threat levels and operating conditions.
InVision Technologies develops, manufactures, markets and supports EDS for civil aviation security based on advanced CT technology. To date, the Company's CTX 5000 and CTX 5500 are the only EDS to be certified by the FAA for use in the inspection of checked luggage on commercial flights. InVision is based in Newark, California. Additional information about the company can be obtained on the World Wide Web at: http://www.businesswire.com/cnn/invn.htm. InVision Technologies is also located on the World Wide Web at http://www.invision-tech.com.
Except for the historical information contained herein, this news release may contain forward looking statements that involve risks and uncertainties, including the timely delivery of units; risks inherent in obtaining government funding and government procurement contracts, including the risk that no additional FAA orders for the CTX 5000 Series will be forthcoming due to a variety of reasons; risks inherent with the development of new products and new applications; as well as other risks detailed from time to time in the company's reports filed with the Securities and Exchange Commission, including the most recent reports on Forms 10-K and 10-Q.
CONTACT: InVision Technologies, Inc.
Linda Snyder, 510/739-2411
or
Morgen-Walke Associates, Inc.
Doug Sherk/John Swenson/Elizabeth Snowdon, 415/296-7383
Sandra Badurina/Patricia Walsh, 212/850-5698
or
Coltrin & Associates
Rahn Rampton, 212/221-1616
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