Cyber Defense Sub Techsphere Signs Exclusive with ISE Corporation for Hybrid Electric and Hydrogen Fuel Cell Solutions For Airships.

ATLANTA & ST. PETERSBURG, Fla. -- Cyber Defense Systems, Inc., (OTCBB: CYDF), a designer and developer of next generation unmanned aerial vehicles (UAV's), and its wholly-owned subsidiary, Techsphere Systems International, Inc. (TSI), a designer, developer and manufacturer of manned and unmanned airships, announced today the signing of an Exclusive Agreement between Techsphere Systems International, Inc. (www.techsphere.us) and ISE Corporation (http://www.isecorp.com/).

The agreement gives Techsphere Systems International, Inc. a worldwide exclusive to purchase from ISE Corporation Hybrid Electric Drive Trains which include controls and software for future engines and power trains on Techsphere Airships. ISE's proprietary systems and controls are expected to provide system efficiencies and corresponding fuel economies that are unparalleled in the Airship industry.

ISE has previously teamed with electrical engineering powerhouse Siemens AG (NYSE: SI) to produce various series of ultra-efficient hybrid transit buses that have demonstrated substantially increased fuel economy while producing the lowest emissions of any bus drive system certified by the California Air Resources Board. The contract between ISE and Techsphere will continue the tradition of hybrid-power innovation into the air, which will open many new doors for the already diverse applications of Techsphere's Airships.

The main benefit of the implementation of these new drivetrains into Techsphere's products will be increased flight longevity. This will vastly improve the airships' reliability as a telecom beacon; visibility potential as an aerial marketing medium; as well as elevate their surveillance capabilities when used as a tool for homeland defense. The deal also yields new possibilities for Techsphere's current partnership with NASA on projects that use the airships as low-earth orbit satellites for purposes of topographic research.

"This Agreement captures the ability to use state-of-the-art hybrid propulsion systems that will enable Techsphere to become the experts in long endurance flight for airships," said Keith Vierela, Chief Operating Officer for Techsphere Systems International.

"This Agreement will allow ISE Corporation and Techsphere not only to use current hybrid electric propulsion, but will allow the team to perfect solutions for hydrogen fuel cell power plants for long endurance flight on Techsphere Airships," said David Mazaika, CEO and President of ISE.

ABOUT CYBER DEFENSE SYSTEMS, INC.

Cyber Defense Systems, Inc. is designing and building a new generation of UAV's and airships. Cyber Defense is currently marketing their M.A.R.S and Techsphere airships as well as their UAV's to various branches of the U.S. government, U.S. allies and commercial clients as multi-use platform vehicles capable of deployment in surveillance and communication operations. Cyber Defense Systems, Inc. http://www.cduav.com (OTCBB: CYDF).

ABOUT TECHSPHERE SYSTEMS INTERNATIONAL, INC.

Techsphere Systems International, Inc., a wholly owned subsidiary of Cyber Defense is located in Atlanta and Columbus, GA, is the manufacturer of low, mid and high altitude airships. Together with their teaming companies, Techsphere will design and build unique airship platforms for use in many areas including surveillance, the military and wireless communications. The current spherical airship design holds the world altitude record at over 20,000 feet. http://www.techsphere.us

ABOUT PROXITY

Proxity, Inc. is a developmental holding company specializing in the deployment and marketing of security protection technology and government contract fulfillment. After the declared dividend Proxity a major shareholder in CYDF will own 18,250,000 shares. Proxity seeks to acquire and develop both internet based business opportunities and security technology. The Company recently formed Proxity Electronic Commerce Systems, LLC (PECS) www.proxity-ec.com and plans to enter into developmental, teaming and exclusive and nonexclusive marketing and distribution agreements with products developed for Government, commercial, military and homeland defense areas. http://www.proxity.com. (PinkSheets:PRXT)

ABOUT ISE CORPORATION

ISE Corporation, based in San Diego, is a leading supplier of hybrid drive systems and components for heavy-duty vehicles such as buses, trucks, trams, airport equipment, and military vehicles. ISE is a world leader in electric, hybrid-electric, and fuel cell technologies, and the U.S. distributor for Siemens ELFA(TM) electric and hybrid-electric drive components. For more information please contact Mr. Gary Williams at [phone], or visit www.isecorp.com.

This release contains statements that constitute forward-looking statements. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company's financing plans; (ii) trends affecting the Company's financial condition or results of operations; (iii) the Company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend," and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control and those actual results may differ materially from those projected in the forward-looking statements as a result of various factors.