Mikros Systems Corporation Announced It Has Entered Into Discussion With the U.S. Navy for a Sole Source Contract

PRINCETON, N.J., Feb. 27, 2004 /PR Newswire-FirstCall/ -- Mikros Systems Corporation (BULLETIN BOARD: MKRS) announced today that it has entered into discussions with the U.S. Navy for a sole source contract to complete the development and begin production of the Multi-Function Distributed Analysis Tool (MFDAT).
 

The MFDAT is an intelligent, automated test tool designed to aid in the maintenance and alignment of complex electronic equipment such as DoD radars, FAA radars, and military and commercial communication systems. Mikros plans to develop and build several prototype MFDAT systems targeted for use with the AN/SPY-1A radar system on Aegis Guided Missile Cruisers.
 

The MFDAT development program began in May 2002 as a result of Mikros winning a competitively bid Small Business Innovation Research (SBIR) contract for Phase I. On August 8, 2003 the Company was awarded Phase II valued at approximately $600,000 with a $150,000 option. The Phase II contract will continue through fiscal year 2004.
 

It is anticipated that funding for the Phase III proposed contract with the Navy will come from an approximately $3M appropriation for the AN/SPY-1A readiness improvement authorized in the FY04 Congressional Bill. The Company is also in discussions regarding a $250,000 contract extension to the existing Phase II SBIR contract.
 

Mikros has also executed a memorandum of understanding with DRS Laurel Technologies of Johnstown, Pennsylvania for the proposed manufacture of the equipment for Phase III.
 

Mikros Systems Corporation is a high technology company focused upon the development and application of new technologies in the defense industry and commercial markets.