These modifications call up an incremental 1,800 trucks and 1,077 trailers in base contract quantities and 2,484 trucks in option quantities for the fourth program year of the current Family of Medium Tactical Vehicle (FMTV) production contract which began April 17, 2003 and includes the sustaining support element.

The value and quantities of these contract modifications are consistent with the Company's prior expectations. In-hand orders for future deliveries of vehicles and service now exceed $1.4 billion.

FMTV cargo, recovery, dump and High Mobility Artillery Rocket System (HIMARS) resupply variants will be delivered under these modifications supporting the US Army's transformation to a modular and more standardized organization.

In addition, these modifications include vehicles to be delivered to the Kingdom of Jordan as a second phase of U.S. Foreign Military Sales investment. Work will be completed at the TVS design, fabrication and assembly facility in Sealy, Texas.

Dennis Dellinger, President of Stewart and Stevenson TVS, said, "It is a privilege to provide our armed forces with the workhorse vehicles of the tactical wheeled fleet. These orders are a testament to our progressive investment in our people and facility in Texas.

Our recent capacity expansion provides us the ability to deliver these increased volumes in a timely and economical fashion. The TVS team has developed a standard of quality, reliability and ultimate readiness in medium tactical vehicles that is unmatched in the industry."

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