Argon ST, Inc. Awarded Next Phase of DARPA Robust Surface Navigation Program.

FAIRFAX, Va. -- 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, was awarded a contract for Phase 2A of the Robust Surface Navigation (RSN) program with Options for Phase 2B and 2C from the Defense Advanced Research Projects Agency (DARPA) Strategic Technology Office.

The initial Phase 2A base contract is worth approximately $6.5M and was awarded after the successful completion of Phase 1 of the RSN program. Argon was initially selected in 2008 by DARPA to develop new and innovative algorithms for mitigating multi-path signal errors and signal blockage that occurs in urban canyons and indoor environments. Advancements made by the Argon team during Phase 1 and the subsequent demonstrations to be made during Phase 2B will ultimately enable U.S. military operations to have GPS-level navigation functions in GPS-denied areas using radio frequency signals of opportunity.

"In today's technology-laden combat arenas the importance of developing alternate technologies to GPS for precision positioning and navigation has never been more critical," said Kerry Rowe, President and Chief Operating Officer, Argon ST. "We are committed to helping solve the fundamental problem of navigation and geolocation in GPS-denied or -degraded areas, especially in the difficult environments inside buildings and in urban canyons. Technologies being developed by the Argon team for DARPA will help our forces maintain that advantage.

"A prime corporate objective for 2009 was to maintain our momentum on our key programs with excellent execution and to leverage that execution into expanded roles on future efforts. This award is indicative of the progress we have seen so far this year on this front. We are very proud that DARPA, the central research and development office for the U.S. Department of Defense, continues to rely on Argon for such an important capability."

Argon ST has selected Honeywell Laboratories, Minneapolis, MN; Ticom Geomatics, Austin, TX; and The Charles Stark Draper Laboratory, Cambridge, MA, to provide supporting software and engineering services in connection with the project.

About Argon ST, Inc.

Argon ST, Inc. designs, develops, and produces systems and sensors for the Command, Control, Communications, Computers, Combat Systems, Intelligence, Surveillance, and Reconnaissance (C5ISR) markets including SIGINT (Signals Intelligence), ESM (Electronic Support Measures), EW (Electronic Warfare), IO (Information Operations), imaging, and acoustic systems serving domestic and international markets.

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