Argon ST, Inc. Announces IDIQ Contract with the Navy.

FAIRFAX, Va. -- Argon ST, Inc. (NASDAQ:STST), announced that it had been awarded a $10 million contract for support to the Airborne Threat Simulation Organization (ATSO) located at the Naval Air Warfare Center Weapons Division Point Mugu, CA. The contract is an indefinite delivery, indefinite quantity (IDIQ) contract with a maximum value of $3.3 million in each of three years. A fully funded task order in the amount of $3.25 million for the first 12 months of tasking was received coincident with the contract award.

The IDIQ contract is Argon ST's first through the US Navy's Seaport E contract vehicle. The contract calls for Argon ST's Active Systems Division in Ventura, CA, to provide engineering developments to improve and maintain ATSO's capabilities as the leader in electronic attack (EA), passive countermeasures and active emitter systems for the simulation of threats against US forces in a dynamic electronic warfare environment.

Jay Grove, Vice President of Argon ST Network Systems stated, "Argon ST is very pleased to be working with ATSO to advance the state of the art in threat simulator technology. With this effort, we can provide our warfighters the most accurate and realistic threat simulations with which to test advanced systems and train for their use."

About Argon ST, Inc.

Argon ST, Inc. designs, develops, and produces systems and sensors for the Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR) markets including SIGINT (Signals Intelligence), ESM (Electronic Support Measures), EW (Electronic Warfare), IO (Information Operations), imaging, and acoustic systems serving domestic and international markets.

Forward-Looking Statements

Statements in this press release which are not historical facts are forward-looking statements under the provision of the Private Securities Litigation Reform Act of 1955. Forward-looking statements are not guarantees of future performance and are based upon numerous assumptions about future conditions that could prove not to be accurate. Forward looking statements are subject to numerous risks and uncertainties, and our actual results could differ materially as a result of such risks and other factors. In addition to those risks specifically mentioned in the reports filed by Argon ST, Inc. (the "Company") with the Securities and Exchange Commission (including the Company's Form 10-K for the fiscal year ended September 30, 2006), such risks and uncertainties include, but are not limited to: the availability of U.S. and international government funding for the Company's products and services; changes in the U.S. federal government procurement laws, regulations, policies and budgets (including changes to respond to budgetary constraints and cost-cutting initiatives); the number and type of contracts and task orders awarded to the Company; the exercise by the U.S. government of options to extend the Company's contracts; the Company's ability to retain contracts during any rebidding process; the timing of Congressional funding on the Company's contracts; any government delay in award or termination of the Company's contracts and programs; difficulties in developing and producing operationally advanced technology systems; the timing and customer acceptance of contract deliverables; the Company's ability to attract and retain qualified personnel, including technical personnel and personnel with required security clearances; charges from any future impairment reviews; the future impact of any acquisitions or divestitures the Company may make; the competitive environment for defense and intelligence information technology products and services; general economic, business and political conditions domestically and internationally; and other factors affecting the Company's business that are beyond its control. All of the forward-looking statements should be considered in light of these factors. Investors should not put undue reliance on any forward-looking statements. We undertake no obligation to update these forward-looking statements to reflect new information, future events or otherwise.