Cyclone Power Technologies Inc. (OTCQB: CYPW) (PINKSHEETS: CYPW), developer of the all-fuel, clean-tech Cyclone Engine, announced today that the U.S. Department of Defense has officially approved Cyclone as the prime contractor under its engine development program with the U.S. Army / Tank Command (TACOM). Cyclone acquired this contract from Advent Power Systems in February 2012, subject to the now completed contract "novation."
The Army / TACOM program is valued at approximately $1.4 million, which is scheduled to be paid to Cyclone over the following 12 months as the Company reaches certain development milestones. The program objective is to develop a Phase I prototype 10kW auxiliary power unit, suitable for use in multiple lines of combat vehicles including the M1 Abrams tank, the IAV Stryker and the Bradley Fighting Vehicle. Should this Phase I program advance to Phase II next year, it could be worth several million dollars in additional revenue to Cyclone and provide further development support towards the ultimate commercialization of these highly compact, efficient and multi-fuel capable power generators.
Christopher Nelson, President of Cyclone, commented: "After months of government review and vetting, we're pleased to have been approved as the prime contractor for TACOM, and excited to continue ahead with this very important program. Taking control over this project was crucial to reducing administrative inefficiencies and maximizing development revenue, and we believe will place us in a stronger position to build our team and secure future military opportunities going forward. We are eager to demonstrate to our customer, the U.S. Army, how Cyclone Engine technology can help reduce the waste of military resources and save lives on the battlefield."
"On behalf of our team, we would also like to thank Congressman Allen West (FL-22) for helping us cut through the bureaucratic red tape during this contracting process, and for his strong support of small businesses like us," added Mr. Nelson.
Source: Cyclone Power Technologies Inc.
Date: Jun 20, 2012