McRae signs New Contract with US Government

November 27, 2008 - United States Of America

McRae Industries Inc reported it has been awarded a new contract (the Contract) to produce tan, temperate weather military combat boots for the U.S. Government.

The Contract covers a base year (November 7, 2008 to November 6, 2009) and two one- year option periods. The Contract base year provides for a minimum boot requirement of 17,556 pairs and a maximum boot requirement of 100,002 pairs with a minimum and maximum dollar value of approximately $1.5 million and $8.6 million, respectively.

The first and second year options provide for the same minimum and maximum boot requirements. If the maximum quantities were invoked in each of the option years, the total value of the contract would be approximately $26.4 million.

McRae Industries was founded in 1959 by Branson J. McRae as a manufacturer of children’s shoes. In 1966, during the height of the Vietnam War, McRae bid on and received a contract to manufacture DMS military combat boots for the United States Army. McRae Industries, under our McRae Footwear Division, has been a manufacturer of military combat boots for the United States Army ever since.