Tucson - Applied Energetics Receives Army Contract

Applied Energetics Receives $3.1 Million U.S. Army Contract For Laser Guided Energy

TUCSON, Ariz., Aug. 18 /PRNewswire-FirstCall/ -- Applied Energetics, Inc., (Nasdaq: AERG) today announced it has been awarded a $3.1 million Contract from the U.S. Army's Research, Development and Engineering Command (U.S. Army RDECOM - Picatinny, NJ) for the continued development and advancement of the company's Laser Guided Energy(TM) (LGE) technology. Regarding the contract, Mr. Joe Hayden, Chief Operating Officer of Applied Energetics commented, "We look forward to working with the Army on the continued development of our LGE technology to meet their mission requirements. This contract signifies the continued commitment of the Army to mature LGE and advance this technology to the field." Laser Guided Energy (LGE) 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 effects against a variety of targets. LGE has been a core proprietary technology for Applied Energetics since the company was founded in 2002. The company has a significant number of patent filings relating to the technology and its applications, with nine patents awarded and twenty-nine patent applications in process. Mr. Ben Lagasca, Chief of the Advanced Energy Armaments Division at U.S. Army ARDEC, stated, "The U.S. Army has been involved with the development of LGE for the past 5 years. Now that the technology is approaching the level of maturity needed to begin weaponization we will be more closely coordinated with Applied Energetics through this contract to fulfill Army mission needs." The award is a cost plus fixed fee Ordnance Technology Initiative Agreement with a ceiling value of $13.4 million over a period of performance of three years. The initial funded contract value is $3.1 million over a period of one year. The development effort will be incrementally funded to support the advances in the systems and components that comprise a Laser Guided Energy system and will be the next step in advancement of these systems to meet U.S. Army future requirements.