AeroVironment Offers Statement Related to DARPA's Phase 3 Tern Decision

AeroVironment, Inc.

AeroVironment today announced it was informed by the Defense Advanced Research Projects Agency (DARPA) that the company was not selected to receive a phase III contract for DARPA's Tern program. The announcement came after a competition for the phase III contract following successful phase I and II efforts. "Our team developed a truly innovative approach to addressing DARPA's requirements, but our customer elected not to pursue our proposed solution," said Kirk Flittie, AeroVironment vice president and general manager of its Unmanned Aircraft Systems business segment. "We thank DARPA for the opportunity to apply our innovation toward developing a next generation unmanned aircraft system to protect United States Navy personnel. We are grateful for the outstanding contributions of our employees and our business partners in this endeavor." The company indicated the impact of this decision is immaterial to its previously announced fiscal year 2016 guidance and revenue neutral for the phase III performance period as a result of the company's proposed funded research and development approach.