Applied Energetics Receives $4.5 Million U.S. Army Contract for Laser Guided Energy Program

TUCSON, Ariz.--(BUSINESS WIRE)--Applied Energetics, Inc., (Nasdaq:AERG) today announced it has been awarded a $4.5 million Sole Source Contract from the U.S. Army’s Research, Development and Engineering Command (ARDEC – Picatinny, NJ) for the development and advancement of the company’s Laser Guided Energy technology.

Applied Energetics Chairman, President and CEO Dana Marshall remarked that the ARDEC contract is a notable milestone for the company. “We thank the Army for their efforts and assistance in moving this program forward. This contract, which is funded through the Army’s RDT&E budget, signifies the commitment by the Army to complete the core technology development for LGE, and will bring us to the follow-on phases of demonstration system engineering.”

Laser Guided Energy is a transformational weapon technology by which a controllable high voltage electric charge can be precisely guided by a laser through the atmosphere to induce a range of controllable effects against a variety of potential military and security targets. LGE has been a central proprietary technology for Applied Energetics since the company was founded in 2002. The company has over thirty patent filings relating to the technology and its applications, with four patents awarded and twenty nine patent applications in process.

Mr. Ben Lagasca Chief of the Advanced Energy Armaments Division at U.S. Army ARDEC, remarked on the award: “The U.S. Army has followed the development of LGE for the past 4 years. Now that the technology is approaching a level of maturity needed to consider weaponization we will be more closely coordinated with Applied Energetics through this contract to bring the technology to full maturity to fulfill Army mission needs.”

The award is a Cost Plus Fixed Fee contract for $4.5 million dollars with a period of performance of one year commencing April 30^th 2008. The development effort will fund advances in the systems and components that comprise a Laser Guided Energy system and will be the first steps in advancement of these systems to meet U.S. Army future requirements.

About Applied Energetics, Inc.

Applied Energetics, Inc., based in Tucson, Ariz., specializes in development and manufacture of advanced high performance lasers, high voltage electronics, advanced optical systems, and integrated guided energy systems for defense, aerospace, industrial, and scientific customers worldwide. Applied Energetics pioneered the development of Laser Guided Energy (LGE®) technology, and related solutions for defense and security applications. For more information about Applied Energetics, please visit www.appliedenergetics.com.

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