Atmospheric Glow Technologies, Inc. Announces New Contract with the U.S. Army.

Business Editors

KNOXVILLE, Tenn.--(BUSINESS WIRE)--May 7, 2004

Atmospheric Glow Technologies, Inc. (AGT) (OTCBB: AGWT) has been awarded a Small Business Innovation Research (SBIR) Phase III contract with the U.S. Army through the Defense Threat Reduction Agency (DTRA) for developing the innovative Atmospheric Plasma Decontamination (APD) System. The value of this twelve month contract is $913,770.

The APD System functions as a deployable military decontamination system and is based on AGT's patented One Atmospheric Uniform Glow Discharge Plasma (OAUGDP(TM)) technology. The APD System has safely neutralized all types of microorganisms which may contaminate sensitive materials and equipment without generating hazardous by-products. Recently, an important milestone was reached when the APD System passed the stringent AOAC Sporicidal Activity Test protocol. This Phase III effort will focus on the development of a chambered APD System. Prior efforts funded by the U. S. Army under SBIR Phase I and Phase II contracts have led to the development of a portable prototypic APD System.

Comprehensive decontamination of military equipment is a difficult task due to the wide range of items to be treated. While some pieces of equipment can withstand a relatively harsh decontamination procedure, this not the case with more sensitive equipment such as communication or navigational electronics, avionics, or computers that cannot endure exposure to liquid decontaminants or strong oxidizing or caustic solutions. Likewise, the use of harsh chemicals that may leave potentially harmful residues or vapors are not appropriate for use on sensitive equipment. The APD System is being developed as an alternative to these conventional treatments.

AGT's management considers the exploratory content of this effort to be vital to its commercialization plans for developing several other products that are expected to rely upon many of the technical attributes of the APD System. Several derivative products are expected to build upon the core capabilities of the APD System for applications in medical device sterilization, disinfecting food and plants, and mold remediation.

AGT's mission is to advance the patented OAUGDP technology licensed from The University of Tennessee Research Foundation. AGT is working to develop related products for commercialization in multiple large scale international markets. Management believes that the OAUGDP is an exciting breakthrough proprietary technology offering capabilities that other plasma technologies do not provide and is poised to capture market share in situations where other plasma technologies are too expensive and/or technologically impracticable. Many of AGT's plasma applications will compete with alternative technologies for market share position. Moreover, AGT is working to expand the applicability of its OAUGDP technology and has targeted new market and product opportunities with the goal of creating additional value. AGT's technology has been the recipient of numerous federal contracts and grants. Currently, AGT is in talks to develop contracts with commercial organizations as its commercialization strategy unfolds.

Statements in this release that are not historical facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In addition, words such as "believes", "anticipates", "expects", and similar expressions are intended to identify forward looking statements. Such forward looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievement of events of the company, or events, or timing of events, relating to the company to differ materially from any future results, performance, or achievements of the forward-looking statements. The company cannot assure that it will be able to anticipate or respond timely to the changes, which could adversely affect its operating results in one or more fiscal quarters. Results of operations in any past period should not be considered indicative of results to be expected in future periods. Fluctuations in operating results may result in fluctuations in the price of the company's securities.