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August 23, 2002

SWM gets Aegis cruiser contract

The U.S. Navy has awarded Southwest Marine (SWM) the advanced planning segment of the contract for dry docking and pier side work on the USS LAKE CHAMPLAIN (CG-57), a Ticonderoga-class Aegis cruiser home-ported in San Diego. Southwest Marine is a member of United States Marine Repair, Inc. which was acquired by United Defense last month.

The advanced planning segment of the contract is valued at $518,484. With funded options, the total contract value is in excess of $12 million. SWM is the prime contractor and has teamed with NASSCO, San Diego to perform the work. The ship is scheduled to arrive at SWM on September 18, 2002, and work is expected to be completed on November 20, 2002.

SWM has performed 31 major repair projects on Aegis ships and has received three Aegis Excellence Awards and two Aegis Team Awards.

"Combining Southwest Marine's expertise and record of outstanding past performance on this class of ships with the knowledge of our neighboring shipyard workers provides the Navy with the talent and dedication of the best and brightest in San Diego," said Monty Dickinson, SWM's president and general manager.

Major dry docking work includes inspection and repair of shafts and propellers, rudder work, hull painting, overhaul and repair of sea valves and inspection of the sonar dome. Over 100 SWM workers a day are assigned to the ship, and SWM will be hiring additional workers to fulfill the contract requirements.

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