Argon Receives $5.3 M in OT-TES Communications Upgrade Awards

(Fairfax, Va., July 9, 2009) -- Argon ST, Inc. (NASDAQ:STST), a leading systems engineering, development and services company providing full-service C5ISR (command, control, communications, computers, combat systems, intelligence, surveillance and reconnaissance) systems and services to a wide range of defense and intelligence customers, today announced that it was awarded two contract modifications by the U.S. Army's Program Executive Office for Simulation, Training & Instrumentation (PEO STRI) to support pre-production activities of the Operational Test-Tactical Engagement System (OT-TES) Communication Upgrade program. The contract modifications are valued at approximately $5.3 million.

Argon ST is the lead system integrator for the OT-TES Communication Upgrade, which represents the U.S. Army's core operational test instrumentation communication and engagement system modernization program. OT-TES Communication Upgrade (CU) evolves the Mobile Automated Instrumentation Suite (MAIS) fielded to the U.S. Army Operational Test Command (OTC) at Fort Hood, TX. OT-TES CU provides advanced laser-engagement and force-on-force networking using Argon ST's innovative HyNetTM combining the best of hub-spoke & mobile ad-hoc networking for mobile user data collection, test/exercise coordination and combat simulation for Real Time Casualty Assessment (RTCA) during force-on-force engagements.

Argon, via an acquired entity, was initially awarded an Indefinite Delivery/Indefinite Quantity (ID/IQ) contract, now valued at over $250M, for the design, development, and delivery of the Communications Upgrade to the OT-TES in 2004. Argon ST is now completing integration and testing with recently deployed systems at Marine Corps Air Station Miramar, CA and Yuma Proving Grounds, AZ. The newly awarded efforts continue and extend Argon's parallel efforts to prepare for full-rate production including logistics, training, and maintenance activities.

"OT-TES Communications Upgrade is a critical test and training range instrumentation project for the U.S. Army and an essential network communications program for Argon. It is a prime example of how our life cycle approach to programs is instrumental to our ongoing success," commented Kerry Rowe, President and Chief Operating Officer, Argon ST. "We have taken this innovative idea, which began as a Small Business Innovative Research effort, through development and are now beginning the critical production readiness and lifecycle support activities. We are executing these efforts as a precursor to an expected start of full-rate production in fiscal year 2010. With continued execution and implementation we are optimistic that this program will stand out as a model for how Argon's value proposition as an innovative, dependable and long term partner benefits our customers and our warfighters."

Source : Argon ST Inc.