American Defense Systems Inc Announces Contract Additions in Excess of $1 Million with the U.S. Army.

HICKSVILLE, N.Y. -- American Defense Systems, Inc. "ADSI" (AMEX: EAG), offering advanced transparent as well as opaque armor, architectural hardening and security products for the defense and homeland defense markets, announced today that the Company has received two contract modifications for armor and field services with a combined value in excess of $1 million under its U.S. Army TACOM contracts (numbers W56HZV-08-C-0311 and W56HZV-05-D-0382/0023). The Company anticipates the revenues associated with these contract additions will be recognized in the current fiscal year 2008.

The first contract adjustment, valued at approximately $700,000, is for heavy equipment armor. The second extends ADSI's Field Service Representative (FSR) presence for onsite product support, and is valued at approximately $400,000.

Ferg Foley, ADSI's Chief Operations Officer, remarked, "We are pleased to be awarded these modifications and are proud to partner with the United States Army Tank-Automotive and Armaments Command (TACOM) in providing equipment and services that are vital to U.S. war fighting and nation building efforts. We believe these follow on orders are further evidence of ADSI's customer satisfaction and our commitment to delivering superior quality products and field service support."

About American Defense Systems, Inc.

American Defense Systems, Inc. "ADSI" (AMEX: EAG) offers advanced solutions in the design, fabrication, and installation of transparent and opaque armor, security doors, windows and curtain wall systems for use by military, law enforcement, homeland defense and corporate customers. ADSI engineers also specialize in developing innovative, functional and aesthetically pleasing security applications for the mobile and fixed infrastructure physical security industry.

For more information about American Defense Systems, Inc. please visit the corporate Web site at http://www.adsiarmor.com.

Some of the statements made by American Defense Systems, Inc. ("ADSI") in this press release, including, without limitation, statements regarding ADSI's anticipated future growth, are forward-looking in nature. ADSI intends that any forward-looking statements shall be covered by the safe harbor provisions for such statements contained in the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "may," "will," "should," "expects," "anticipates," "intends," "plans," "believes," "estimates," "predicts," "potential," "continues" and similar expressions are forward-looking statements. ADSI cautions you that forward-looking statements are not guarantees of performance. ADSI undertakes no obligation and disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements involve known and unknown risks and uncertainties that may cause ADSI's actual future results to differ materially from those projected or contemplated in the forward-looking statements. ADSI believes that these risks include, but are not limited to: ADSI's reliance on the U.S. government for a substantial amount of its sales and growth; decreases in U.S. government defense spending; ADSI's ability to contract further with the U.S. Department of Defense; ADSI's ability to comply with complex procurement laws and regulations; competition and other risks associated with the U.S. government bidding process; changes in the U.S. government's procurement practices; ADSI's ability to obtain and maintain required security clearances; ADSI's ability to realize the full amount of revenues reflected in its backlog; ADSI's reliance on certain suppliers; and intense competition and other risks associated with the defense industry in general and the security-related defense sector in particular. Additional information concerning these and other important risk factors can be found under the heading "Risk Factors" in ADSI's filings with the Securities and Exchange Commission, including, without limitation, its most recent registration statement on Form 10. Statements in this press release should be evaluated in light of these important factors.