Tel-Instrument Announces DoD AIMS Program Office Certification on the TS-4530A Mode 5 IFF Flight-Line Test Set

Production Contracts Now In Place to Fully Satisfy the Mode 5 Testing Requirements of the U.S. Army, US Air Force, U.S. Navy and US Coast Guard

EAST RUTHERFORD, N.J.–(BUSINESS WIRE)– Tel-Instrument Electronics Corp. (NYSE MKT Symbol: TIK) announced that the Department of Defense (DoD) AIMS Program Office has certified on March 11, 2013 its TS-4530A Flight Line Test Set for use in testing Mark XIIA IFF (“Identification Friend and Foe”), Mode S (ELS/EHS/ADS-B) and TCAS systems. This certification is related to a $44 million Indefinite Quantity/Indefinite Delivery (“IDIQ”) contract from the U.S. Army to upgrade up to 3,000 existing legacy test sets to support Mode 5 testing and produce up to 2,000 new TS-4530A test sets. The Company has already received over $22 million dollars in orders from this award. The current delivery schedule, which entails monthly billings of approximately $1 million, is currently being evaluated by the Army. The issue standing in the way of a full-rate production approval is the Army request that changes be made to the logistics documentation package. This could take several months to complete and the Company has requested Army approval to commence LRIP (limited rate initial production) shipments while updates are made to the logistics documentation.

Mr. Jeffrey O’Hara, the Company’s President and CEO said, “Tel-Instrument is pleased that AIMS has certified the TS-4530A product as this is a key milestone in moving towards a full-rate production release on this unit. Tel is working hard to secure Army approval to begin LRIP shipments in the near-term. The Company has begun building these units and is hopeful for a favorable decision from the Army. We have also submitted a progress payment request on this program to enhance our liquidity position. Commencement of production on the TS-4530A program will be a key step in propelling the Company into the growth phase that it has been anticipating for well over one year. With the TS-4530A certification in place, the Company has now secured AIMS approval on three Mode 5 flight-line test sets, including the CRAFT AN/USM-708, the CRAFT AN/USM-719, and the TS-4530A and has production contracts in place to fully satisfy the Mode 5 testing requirements of the U.S. Army, US Air Force, U.S. Navy and US Coast Guard.”

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