Argon ST. Inc Announces Contract Extension Award for Additional Ship's Signal Exploitation Equipment (SSEE) Increment E Sensor Systems, Valued at Approximately $28.7M.

FAIRFAX, Va. -- Argon ST, Inc. (NASDAQ:STST), a leading developer of command, control, communications, computers, combat systems, intelligence, surveillance, and reconnaissance (C5ISR) systems, announced today that it has received a contract modification to complete the fifth phase of a multi-year full rate production contract to provide Ship's Signal Exploitation Equipment (SSEE) Increment E sensor systems to the United States Government. SSEE is the most modern and extensive communications intelligence system that is deployed on U.S. Navy surface ships. This modification immediately exercises an option with an approximate value of $28.7 million and authorizes the procurement of systems for FY08. This modification is combined with the initial portion of the fifth phase, awarded in August 2007 with an approximate value of $18M, to bring the full value of the fifth phase to approximately $46.7 million.

Joe Carlin, Vice President of Information Dominance at Argon ST, stated, "We are proud to see our SSEE Inc E systems continue to be so well received by the U.S. operational forces along with their continued effective performance in deployments. This contract modification demonstrates the government's confidence in continuing the Argon ST / US Navy partnership that is producing cost effective sensor systems solutions."

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.

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 1995. 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 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.