Air Force Combat Controllers Supplement Advanced Training with FATS; $455,000 Purchase for I-FACT Simulation Systems.

Business Editors

ATLANTA--(BUSINESS WIRE)--April 13, 2004

The U.S. Air Force (USAF) has placed an order with FATS, Inc.(OTC: FATS) for the purchase of multiple Indirect Fire-Forward Air Control Trainer (I-FACT) simulation systems, which will be used to train the Combat Air Controllers based at selected locations throughout the world. These Controllers are among the most highly trained and versatile specialists in the U.S. Armed Forces. Fielding and new equipment training is scheduled to begin immediately.

The I-FACT was developed with FATS strategic partner SDS International. The I-FACT is the first commercially available virtual training solution system designed to train ground controllers in the tactics, techniques and procedures necessary to conduct successful joint close air support operations. A software-based training solution, it supports laptop-based operation through classroom and domed screen events, as well as deployed training.

With this acquisition, the USAF now has a total of 12 I-FACT systems to facilitate Joint Forward Air and Terminal Attack Controller readiness. Because of the systems' mobility, they will be deployed worldwide, allowing individual units to conduct training at any location. An earlier purchase by the USAF provided this unique training system to the Air Ground Operations School at Nellis Air Force Base.

Combat Controller is the highest level of training in the Air Force, on par with the Army Rangers and Navy SEALS, and number less than 400 airmen. Less than one percent of all recruits qualify for the rigorous demands and challenges of the Combat Control specialty.

FATS, Inc. CEO Ron Mohling said, "The I-FACT system is the first forward air control simulator to be approved by the USAF to train these top-tier airmen. We're proud that our advanced technology meets the needs of the best air force in the world."

FATS, Inc. (OTC: FATS) designs and sells software and hardware simulation training systems that improve the skills of the world's military, law enforcement and security forces. FATS training systems provide judgmental, tactical and combined arms experiences, utilizing company-produced weapons and simulators. The company serves U.S. and international customers from headquarters in Suwanee, Georgia, with branch offices in Australia, Canada, Singapore, Netherlands and United Kingdom. FATS, an ISO 9000 certified company, celebrates its 20th anniversary in 2004. The company Web site is www.fatsinc.com.