Avondale will serve as the prime contractor for the team which includes Bath Iron Works Corporation (a subsidiary of General Dynamics), Hughes Aircraft Company (a subsidiary of Hughes Electronics) and Intergraph Corporation. Avondale will build the first two ships while the third will be constructed by Bath Iron Works.

Bossier noted, "Work on the initial LPD-17 is to begin immediately, and delivery of the first ship is expected in 2002. This schedule fits well with the existing backlog which includes the Strategic Sealift contract for six ships. The Navy has indicated an intent to acquire as many as 12 vessels under the LPD-17 program. If all of the 12 ships are awarded to the Avondale alliance, this would mean the potential of a shipbuilding program which is anticipated to exceed $6.0 billion for the alliance, a high utilization of our shipyard resources for about ten years and the employment of approximately 4,000 Avondale employees at peak production for this program. Current plans call for Avondale to build eight of the twelve LPD-17 class ships with Bath Iron Works building the other four. Hughes Aircraft will be responsible for integrating the ships' electronic and weapons systems into the construction process for all 12 ships."

Bossier commented, "This award not only represents an increase in our funded backlog to a new record of more than $1.8 billion from a previous high of $1.5 billion in 1994 but also firmly establishes Avondale's leadership in a major program which is expected to be the mainstay of the Navy's amphibious vessels over the next three decades. The genesis for this program was the Navy's need to replace more than 40 vessels that are nearing the end of their useful service.

"Our successful bid to serve as the lead contractor on this important program rests squarely on the Avondale team's proven productivity and cost effectiveness. We appreciate the hard work of the strategic team that was assembled to prepare our bid which depended importantly on full cooperation within the alliance that we assembled. Our focus now is squarely on implementing the plan which the Navy endorsed in awarding us this landmark contract."

Avondale was informed of the award by its Congressional delegation including House Appropriations Committee Chairman Bob Livingston (R-LA) and Senator J. Bennett Johnston (D-LA) whose committees funded this ship and U.S. Representative William Jefferson (D-LA) whose House National Security Committee authorized this ship. Other area lawmakers including U.S. Representative Billy Tauzin (R-LA) voted for this program on the House floor.

Avondale Industries, Inc., headquartered in metro New Orleans, designs, builds and overhauls both military and commercial vessels.