NEW ORLEANS, LOUISIANA -- AVONDALE INDUSTRIES, INC. (NASDAQ/NMS-AVDL) OF NEW ORLEANS, LOUISIANA; BATH IRON WORKS CORPORATION OF BATH, MAINE AND HUGHES AIRCRAFT OF CALIFORNIA ANNOUNCED TODAY THEIR INTENTION TO FORM AN ALLIANCE TO JOINTLY PURSUE A PROGRAM WITH THE U.S. NAVY FOR THE DESIGN AND CONSTRUCTION OF A NEW CLASS OF AMPHIBIOUS TRANSPORT DOCK VESSELS. THE NEW CLASS OF AMPHIBIOUS VESSELS IS TO BE DESIGNATED THE LPD-17 AND IS EXPECTED TO BE AWARDED IN FISCAL 1996. THE LPD-17 PROGRAM IS THE MOST SIGNIFICANT NEW SURFACE SHIP CONSTRUCTION PROGRAM PLANNED BY THE NAVY FOR THE NEXT FIVE YEARS.

FOR THE LAST DECADE, AVONDALE S MAJOR SHIPBUILDING EFFORT FOR THE U.S. NAVY HAS BEEN THE DESIGN AND CONSTRUCTION OF THE T-AO 187 CLASS FLEET OILERS, THE LSD 41 AND LSD 49(CV) CLASS AMPHIBIOUS SHIPS AND THE TAGS-45 OCEANOGRAPHIC RESEARCH SHIP. IN THE SAME PERIOD, BATH S MAJOR EFFORT HAS BEEN THE CONSTRUCTION OF CG-47 CLASS CRUISERS AND THE DESIGN, CONSTRUCTION AND LIFE CYCLE SUPPORT OF DDG-51 CLASS DESTROYERS. CONCURRENTLY, HUGHES HAS DEVELOPED THE NAVY S ADVANCED DIRECTION SYSTEM (BLOCK 1) AND THE SHIP SELF DEFENSE SYSTEM (MARK 1).

AVONDALE WILL BE THE PRIME CONTRACTOR AND THE SHIPS WILL BE CONSTRUCTED IN BOTH THE AVONDALE AND BATH YARDS. HUGHES AIRCRAFT WILL BE RESPONSIBLE FOR TOTAL SHIP SYSTEM INTEGRATION.

THE ALLIANCE WILL BE FURTHER STRENGTHENED BY THE TECHNICAL STAFF OF THE ELECTRIC BOAT DIVISION OF GENERAL DYNAMICS CORPORATION.

ALBERT L. BOSSIER, JR., CHIEF EXECUTIVE OFFICER OF AVONDALE SAID TODAY, THE APPROACH CONTEMPLATED BY THE ALLIANCE WILL PROVIDE THE NAVY WITH THE BEST VALUE IN THE DESIGN, CONSTRUCTION AND LIFE CYCLE SUPPORT OF THE TWELVE VESSELS PLANNED FOR THE LPD-17 PROGRAM.

AVONDALE INDUSTRIES, INC., HEADQUARTERED IN METRO NEW ORLEANS, IS ONE OF THE NATION'S LEADING MARINE FABRICATORS. IN ADDITION TO ITS SHIPBUILDING OPERATIONS, THE COMPANY SPECIALIZES IN BOAT CONSTRUCTION AND IS A MAJOR REPAIR CONTRACTOR FOR COMMERCIAL AND NAVY SHIPS. IT IS ALSO INVOLVED IN THE MODULAR CONSTRUCTION OF PLANTS AND COMPONENTS FOR A VARIETY OF LAND-BASED INDUSTRIES.