Argon Awarded $30 M Contract Extension from US Navy

Production Contract Will Equip Navy Surface Ships With Enhanced Communications Intelligence System

(Fairfax, Va., December 4, 2008) -- Argon ST, Inc. (NASDAQ:STST), a leading developer of command, control, communications, computers, combat systems, intelligence, surveillance, and reconnaissance (C5ISR) systems, today announced that it has received a contract modification to complete the sixth phase of a multi-year full rate production contract to provide Ship's Signal Exploitation Equipment (SSEE) Increment E sensor systems to the United States Navy.

SSEE is the most modern and extensive communications intelligence system that is deployed on U.S. Navy surface ships. This modification immediately exercises an option with an approximate value of $30.4 million and authorizes the procurement of systems for fiscal year 2009.

"The SSEE program has been a long term contract for Argon," commented Dr. Terry Collins, Chairman and Chief Executive Officer, Argon ST. "It is a great representation of the value that Argon brings to our customers through our life cycle approach to projects. We started this project almost eight years ago as a research and development contract and as we have successfully met benchmarks, we have progressed through conceptual capability, development, capability enhancements and continuous production. We are very proud that the technology and systems we have developed will provide our operational forces with the most modern capabilities in the world."

Joe Carlin, Vice President of Information Dominance at Argon stated, "The Argon / U.S. Navy partnership that this option extends continues to provide our operational forces with the most modern capability in the world. We are proud the U.S. Navy continues to trust Argon for the solution to one of its critical mission needs."

Source : Argon ST Inc.

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